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ETF Comparison

FEPI vs QQQ: Which Is the Better Pick in 2026?

A head-to-head comparison of REX FANG Covered Call ETF and Invesco QQQ Trust covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • FEPIInvestors who want to maximize current income — roughly 25.17%, generated by selling options premium.
  • QQQInvestors who want a growth tilt and can accept bigger swings for higher upside.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

FEPI has lagged QQQ over the trailing twelve months, posting a 15.86% total return against 24.14%. Measured from Oct 2023 — the start of shared available history — QQQ has compounded at 26.85% a year versus 19.76% for FEPI. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
SymbolYTD cumulative1Y cumulativeSince Oct 2023Volatility Sharpe Sortino Max drawdown
FEPI12.66%15.86%19.76%19.7%0.520.73-15.0%
QQQ21.07%24.14%26.85%19.9%0.861.24-12.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 30, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Oct 2023” measures every fund from October 11, 2023 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Distribution rate, SEC yield and return of capital

MetricFEPIQQQ
Forward distribution rate25.17%0.41%
Trailing 12-month yield24.55%0.42%
30-day SEC yield-0.32%—
Return of capital100.00%—

Total return (price change plus reinvested distributions) is the Total returns section above. Return of capital is the share of a recent distribution that was not income. A 30-day SEC yield can sit far from the headline distribution rate; both numbers are the fund's own published fields.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
MetricFEPIQQQ
Full nameREX FANG Covered Call ETFInvesco QQQ Trust
IssuerREX SharesInvesco
Underlying indexBasket (FANG & innovation equities)Nasdaq-100 Index
Last Close$42.84 as of September 30, 2026$739.77 as of September 30, 2026
Distribution rate25.17%0.41%
Trailing 12-month yield24.55%0.42%
30-day SEC yield-0.32%—
Distribution Safety Score™ 7797
Safety-Adjusted Yield 19.38%0.40%
Expense ratio0.65%0.18%
AUM$727M$501B
Distribution frequencyWeeklyQuarterly
ObjectiveTargets income by selling covered calls on an actively managed basket of FANG and innovation focused equities while maintaining growth exposure.Track the Nasdaq-100 Index, which includes 100 of the largest non-financial Nasdaq stocks.
Asset classEquityEquity
Inception date10/11/202303/10/1999
Beta1.16841.26
Last dividend$0.2074 declared, pays 10/01/2026$0.75143 declared, pays 10/08/2026
Ex-dividend date09/30/202609/21/2026

Bottom lineChoose FEPI if you want to maximize current income — roughly 25.17%, generated by selling options premium. Choose QQQ if you want a growth tilt and can accept bigger swings for higher upside. There's no free lunch: FEPI's payout comes from selling options, which caps upside and can erode the share price over time, while QQQ keeps full price exposure.

How the risk works

Read this before the income numbers below: the strategy mechanics on this page shape what those payouts can cost you.

  • Capped upside and premium dependence. FEPI generates income by selling options, which trades away part of a strong rally in exchange for premium. Distributions can include return of capital, and a payout the underlying assets cannot sustain shows up as NAV erosion over time — the big yield number is not free.

Learn the mechanics: Return of capital, explained · NAV erosion, explained

Model this comparison:
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Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

REX Shares
ETFs74
Total AUM$17.1B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

REX Shares is known for specializing in options-based and thematic ETF strategies, offering 23 funds organized across distinct families including Covered Call, IncomeMax Option Strategy, and MicroSectors products. The fund lineup emphasizes income generation through option strategies and sector-specific exposure, with holdings spanning technology, commodities, and alternative assets. REX Shares targets investors seeking non-traditional income approaches and concentrated sector bets, positioning itself in a niche segment focused on structured strategies rather than broad market indexing.

See our curated list of related YouTube videos on FEPI.

See all REX Shares ETFs
Invesco
ETFs246
Total AUM$1013B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Invesco is a major ETF provider known for offering a comprehensive lineup spanning multiple asset classes and investment strategies. The company specializes in income-focused products including dividend, covered call, and bond strategies, while also maintaining broad exposure across equity, factor-based, thematic, and ESG investing themes. Invesco's portfolio ranges from index-tracking funds to alternatives and specialized offerings like digital assets and BulletShares, making it one of the more expansive ETF families available to investors.

See our curated list of related YouTube videos on QQQ.

See all Invesco ETFs

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Quick verdict

FEPI (REX FANG Covered Call ETF) and QQQ (Invesco QQQ Trust) are both dividend ETFs, but they take different approaches.

FEPI offers the higher yield at 25.17% vs 0.41% for QQQ. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

QQQ is cheaper with an expense ratio of 0.18% compared to 0.65%.

They have different reference exposures: FEPI is linked to Basket (FANG & innovation equities) while QQQ is linked to Nasdaq-100 Index, which means their performance drivers differ.

QQQ is the larger fund by assets ($501B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose FEPI

REX FANG Covered Call ETF

  • Want to maximize current income — FEPI distributes roughly 25.17% from selling options premium, vs 0.41% for QQQ.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.

Choose QQQ

Invesco QQQ Trust

  • Want a growth tilt and can accept larger swings for more upside.
  • Want to keep costs low — a 0.18% expense ratio vs 0.65% for FEPI.

Not sure? Use the income calculator and snapshot above to weigh these trade-offs against your own goals.

Deep dive

Yield & income

On a $10,000 investment, FEPI would generate roughly $48.40 cash per distribution, while QQQ would produce $10.25 cash per distribution, at current distribution rates.

FEPI yield25.17%
QQQ yield0.41%
Cash diff on $10K$38.15

Cost & efficiency

Over 10 years on $10,000, FEPI would cost approximately $650 in fees vs $180 for QQQ (simplified, not compounded). The $470.00 difference may be offset by yield or performance.

FEPI ER0.65%
QQQ ER0.18%

Strategy & risk

FEPI is actively managed around Basket (FANG & innovation equities) exposure with a covered call approach, while QQQ tracks Nasdaq-100 Index with a growth approach. Beta is 1.1684 for FEPI and 1.26 for QQQ, making FEPI the less volatile of the two by this measure.

FEPI beta1.1684
QQQ beta1.26

Fund details

FEPI is managed by REX Shares (launched 10/11/2023) with $727M in assets. QQQ is managed by Invesco (launched 03/10/1999) with $501B in assets.

FEPI AUM$727M
QQQ AUM$501B
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Frequently asked questions

What is the current distribution rate for FEPI and QQQ?

FEPI currently distributes 25.17% and QQQ 0.41%, based on fund data updated September 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is FEPI or QQQ better for dividend income?

It depends on your goals. FEPI currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between FEPI and QQQ?

FEPI (REX FANG Covered Call ETF) is actively managed around Basket (FANG & innovation equities) exposure with a covered call approach, while QQQ (Invesco QQQ Trust) tracks Nasdaq-100 Index with a growth approach. They are issued by REX Shares and Invesco respectively.

Can I hold both FEPI and QQQ?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is FEPI or QQQ safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — QQQ scores 97, FEPI scores 77, so QQQ's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee, and the leverage, options-income, or crypto caveats flagged on this page apply regardless of score.

Which has lower fees, FEPI or QQQ?

FEPI has an expense ratio of 0.65% while QQQ charges 0.18%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in FEPI vs QQQ generate?

At current rates, $10,000 in FEPI would generate roughly $48.40 cash per distribution ($2,517.00 annually). The same in QQQ would produce about $10.25 cash per distribution ($41.00 annually).

Which has performed better historically, FEPI or QQQ?

FEPI has lagged QQQ over the trailing twelve months, posting a 15.86% total return against 24.14%. Measured from Oct 2023 — the start of shared available history — QQQ has compounded at 26.85% a year versus 19.76% for FEPI. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

FEPI vs QQQ — at a glance

Generated September 27, 2026.

FEPI launched in October 2023 and targets a 25.17% distribution rate through options strategies; QQQ has tracked the Nasdaq-100 since 03/10/1999 with minimal distributions. The core tradeoff is between synthetic income generation (FEPI) and pure index exposure (QQQ).

How they differ

FEPI's defining feature is its covered-call overlay: it systematically sells call options on its holdings to generate weekly income, which explains the 25.17% distribution rate. QQQ, by contrast, simply holds the index constituents with no option strategy, resulting in a 0.41% distribution rate. FEPI's 0.65% expense ratio covers active management and option execution, while QQQ's 0.18% reflects pure index tracking. FEPI's beta of 1.1684 sits slightly above QQQ's 1.26, but the real difference is that FEPI's return potential is capped by its call sales—gains above the strike prices flow to option buyers, not shareholders.

Who each is best for

FEPI: Fits investors seeking regular weekly income from a growth-focused basket and who are willing to accept capped upside in exchange for consistent cash distributions, or those seeking a tactical tactical income solution over a limited holding period.

QQQ: Fits investors pursuing long-term growth exposure to large-cap technology and innovation stocks with minimal distributions, or those seeking the broadest and most liquid Nasdaq-100 index tracking without synthetic income mechanics. Investors should model their expected holding period against the fund's age-to-date price performance.

  • Capped upside from covered calls. FEPI shareholders forgo gains beyond call strike prices. During strong rallies, QQQ will materially outperform FEPI—a structural feature that compounds over multi-year holding periods.
  • Concentration risk in both. Both ETFs are heavily weighted toward FANG and related mega-cap technology names. Their holdings overlap substantially, meaning they move together in sector downturns; owning both doesn't diversify concentration risk.
  • Options and leverage risk. FEPI's call-selling strategy is sensitive to realized volatility and implied volatility shifts. Sharp declines in implied vol can compress future option premiums, reducing income generation just as market stress increases appeal for cash.

Bottom line

If you prioritize maximum income and can accept capped growth and principal erosion risk, FEPI offers a structured way to extract option premium from a growth portfolio. If you want transparent index exposure to large-cap tech with compounding upside and minimal fees, QQQ remains the standard choice. Past performance of either strategy does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

How covered-call funds work How to read a fund's stats The covered-call opportunity cost

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These comparisons follow the Dividend Vision methodology.