JEPQ vs QYLG

JEPQAJPMorgan Nasdaq Equity Premium Income ETF

QYLGAGlobal X Nasdaq 100 Covered Call & Growth 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.

QYLG Covered calls, but only on half the book. QYLG owns the Nasdaq-100 and sells at-the-money calls on roughly 50% of the portfolio, trading away half the index's upside for monthly option income instead of all of it.

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.

QYLG QYLG combines exposure to Nasdaq-100 stocks with a covered-call program on approximately half of the portfolio. The strategy is intended to provide income while retaining some upside participation.

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

• QYLG Calls cover about half the portfolio, so the unwritten half keeps full participation in Nasdaq-100 moves instead of getting capped every month.globalxetfs.com
• A 0.35% expense ratio undercuts most Nasdaq-100 option-income funds, including Global X's own full-overwrite sibling QYLD.
• Rules-based, not discretionary: it follows the Cboe Nasdaq-100 Half BuyWrite V2 Index, and its delivery of that stated mandate sits in the top quartile of its peer group.globalxetfs.com
• Distributions run monthly, a cadence the fund has kept since its 2020 launch.globalxetfs.com

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

• QYLG Half the overwrite, roughly half the premium: by design this generates less income than a full covered-call fund like QYLD writing on the whole portfolio.globalxetfs.com
• The written half uses at-the-money calls, so that slice's gains stop at the strike in a hot month. Premium collected rises and falls with volatility.globalxetfs.com
• Assets and daily volume are modest next to the category's heavyweights, so bid-ask spreads matter more on larger orders.

Full JEPQ profile⁠

Full QYLG profile⁠