JEPQ vs QXQ

JEPQAJPMorgan Nasdaq Equity Premium Income ETF

QXQCSGI Enhanced Nasdaq 100 ETF

In short

JEPQ Most Nasdaq income funds bolt call options onto the index and call it a day. JEPQ picks its own roughly 110 US large-cap stocks, then writes out-of-the-money Nasdaq-100 calls on top, aiming for monthly income with less volatility than the index itself.

QXQ A boutique, actively managed take on Nasdaq-100 income: a manager decides which options to write instead of following a covered-call rulebook, and income lands quarterly. The discretion comes at the pricier end of the category.

Stated mandate

JEPQ The fund seeks current income while preserving potential for capital appreciation. It combines a data-science-driven portfolio of U.S. large-cap stocks with written out-of-the-money Nasdaq-100 Index call options and seeks lower volatility than the Nasdaq-100 Index.

QXQ The Fund seeks capital appreciation and current income. It is actively managed, invests at least 80% of its net assets in Nasdaq-100-related equity or index-replication instruments, and uses options strategies to generate income.

Why people hold it

• JEPQ Charges 0.35% a year, roughly half the typical fee among Nasdaq options-income funds and well under QYLD's 0.60%.
• Income is manufactured by writing out-of-the-money Nasdaq-100 calls and paid out monthly, rather than harvested from high-dividend stocks.jpmorgan.com
• One of the largest and most heavily traded funds in the Nasdaq options-income group, which generally means tight spreads and easy entry and exit.
• The calls are struck out of the money, so the mandate keeps room for capital appreciation in the stock sleeve alongside the payout.jpmorgan.com

• QXQ Actively managed rather than rules-based. The manager chooses the options, with at least 80% of net assets in Nasdaq-100 equity or index-replication instruments.
• Dual mandate stated plainly in the filings: capital appreciation plus current income. The options overlay supplements the Nasdaq-100 exposure rather than replacing it.
• Does what the label says. The portfolio and the options program line up closely with the Nasdaq-100 income mandate in its own documents.

Worth knowing

• JEPQ The overlay clips the top off big Nasdaq rallies: premium comes in, but stock gains above the call strikes go to the option buyer.jpmorgan.com
• Monthly payouts float with option premiums, which move with market volatility. This is variable income, not a fixed coupon.
• About 110 US large-cap holdings paired with a Nasdaq-100 overlay: concentrated, tech-leaning exposure rather than a broad-market portfolio.jpmorgan.com

• QXQ At 0.98% a year, it sits above the roughly 0.68% median for Nasdaq-100 income funds, and well above peers like JEPQ, GPIQ and QQA near 0.35%.
• A small fund that trades thinly, so getting in and out can cost more than it does in the category's household names.
• Launched in 2024, so the live record is short, and income arrives quarterly rather than monthly. It currently sits in the lower half of its peer group.

Full JEPQ profile⁠

Full QXQ profile⁠