JPMorgan Equity Premium Income ETF (JEPI) vs JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): Which is the better buy in April?

Derivative income exchange-traded funds (ETFs) have recorded some of the highest net inflows over the past year, with investors increasingly favoring covered call strategies. Two of the largest funds in this category are the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which together hold $78 billion in assets under management (AUM).

Inflows and strategy behind JEPI and JEPQ

JEPI and JEPQ became especially popular in 2022, when both stocks and bonds declined sharply and investors sought income and perceived safety from high-yield covered call products. While returns have moderated since that bear market, inflows have continued.

Both ETFs use covered call approaches designed to generate income by writing out-of-the-money call options on their respective equity benchmarks. JEPI focuses on low-volatility stock exposure, while JEPQ targets Nasdaq-100 stocks.

The case for the JPMorgan Equity Premium Income ETF (JEPI)

JEPI is actively managed and targets stocks with below-market volatility and an attractive risk/return profile. On top of its portfolio, the fund writes out-of-the-money S&P 500 call options to generate monthly income.

The fund’s emphasis on low-volatility holdings is central to its defensive positioning. Its top holdings include Walmart, Johnson & Johnson, NextEra Energy, and Ross Stores.

Macro backdrop supporting a defensive tilt

The article points to a challenging environment for equities. U.S. gross domestic product (GDP) growth in the fourth quarter of 2025 slowed to an annualized rate of 0.7%. Month-over-month non-farm payroll growth has been negative in five of the past nine months. Separately, the Organization for Economic Cooperation and Development (OECD) forecast a 4% inflation rate in the United States later this year.

In this context, the article argues that investing in more defensive stocks may help reduce volatility and downside risk. While covered call strategies can limit upside, the additional yield may help offset potential share price declines.

JEPI market snapshot

• Current price: $56.45
• Today's change: (0.07%) $0.04
• Day's range: $55.89 - $56.63
• 52-week range: $49.94 - $59.90
• Volume: 5M

The case for the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

JEPQ follows a methodology similar to JEPI, but it invests in Nasdaq-100 stocks and writes out-of-the-money call options on the Nasdaq-100 index. The article highlights that this shift changes the fund’s risk/return profile.

Because Nasdaq-100 stocks are generally more volatile than low-volatility stocks, the fund can generate higher option income premiums. JEPQ’s current yield is 11.4%.

Why Nasdaq exposure may be less favored now

The article also notes that the Nasdaq-100 is tech-heavy, and many investors are questioning valuations and whether spending tied to AI development will ultimately pay off. It adds that if the economy and labor market continue to slow, tech and growth stocks typically may not be the areas that outperform.

JEPQ market snapshot

• Current price: $55.59
• Today's change: (0.13%) $0.07
• Day's range: $54.48 - $55.66
• 52-week range: $44.31 - $60.14
• Volume: 6.1M

JEPI vs. JEPQ: which is positioned better in the near term?

Based on the macro conditions described, the article concludes that JEPI is the better choice right now. It argues that low-volatility stocks provide at least a modest layer of protection in a difficult environment, while the steadier cash-flow profile of such companies may help mitigate volatility risk.

Over the long term, the article suggests JEPQ could potentially outperform due to its Nasdaq-100 linkage, but it maintains that JEPI is better positioned for the current period.