The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the Global X NASDAQ 100 Covered Call ETF (QYLD) offer high-income yields from portfolios heavily focused on mega-cap technology stocks. Both ETFs employ covered call strategies on the NASDAQ 100 index [cf9545e0].
JEPQ had 52.5% exposure to the technology sector, while QYLD had 52.6%. JEPQ's portfolio is slightly better diversified, with its top ten holdings comprising 43.74% of its portfolio compared to QYLD's 50% [cf9545e0].
The trailing 12-month yield for JEPQ was 8.83%, compared to QYLD's 11.73%. JEPQ has a lower expense ratio at 0.35%, significantly lower than QYLD's 0.61% [cf9545e0].
JEPQ has outperformed QYLD since its inception, with a total return of 36.54% compared to QYLD's 12.95%. Given JEPQ's similar portfolio composition and strategy as QYLD, significantly lower expense ratio, and vastly superior track record, it stands head and shoulders above QYLD. JEPQ offers significant value for investors looking to diversify their income-focused portfolios with mega-cap technology exposure while maintaining or enhancing their overall portfolio yield [cf9545e0].