JEPI vs JEPQ vs SCHD vs VYM: Covered-Call Income or Dividend Growth?
Compare two actively managed options-income ETFs with two traditional dividend index funds, including current income, long-term upside, cost and risk.
Data updated August 26, 2026
JEPI vs JEPQ vs SCHD vs VYM: Quick Answer
JEPQ currently provides the most income and led total return over the common period beginning in May 2022, but it also experienced the deepest drawdown. JEPI provides lower-volatility monthly income with a smaller payout. SCHD offers substantially lower fees, quarterly dividends, full market upside and a dividend-growth strategy rather than an options-income strategy. VYM is a broader, low-cost traditional dividend alternative.
Choose JEPI: Prioritize monthly income and shallower historical drawdowns.
Choose JEPQ: Seek the highest current income and accept greater technology exposure and volatility.
Consider VYM: Prefer broader high-dividend exposure and the lowest expense ratio of the four.
Focused JEPI, JEPQ, SCHD and VYM decision table.
Metric
JEPI
JEPQ
SCHD
VYM
Strategy
Active lower-volatility U.S. equities plus option income through ELNs
Active growth-oriented U.S. equities plus option income through ELNs
Dividend-quality index
Broad high-dividend benchmark index
Payment frequency
Monthly
Monthly
Quarterly
Quarterly
Latest distribution annualized
7.57%
14.16%
2.88%
2.38%
$10K estimated monthly income
$63.08
$118.00
$24.00
$19.83
Expense ratio
0.35%
0.35%
0.06%
0.04%
Distribution Safety Score™
75/100
90/100
100/100
95/100
Best suited for
Smoother monthly income
Higher income and technology exposure
Dividend growth and long-term upside
Broad, low-cost high-dividend exposure
Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
SCHD tops the group over the trailing twelve months with a 31.07% total return, against JEPI at 9.72%, JEPQ at 20.16% and VYM at 22.18%. Across the 3-year window, JEPQ has the strongest compounding at 20.11% a year. 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.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 25, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since May 2022” measures every fund from May 4, 2022 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. 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 trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Side-by-side snapshot
Side-by-side snapshot. Each row is one metric;
each column is one fund.
Vanguard High Dividend Yield Index Fund ETF Shares
Issuer
JPMorgan
JPMorgan
Schwab
Vanguard
Underlying index
—
Nasdaq-100
Dow Jones U.S. Dividend 100 Index
FTSE High Dividend Yield Index
Last Close
$58.14 as of August 26, 2026
$59.75 as of August 26, 2026
$35.11 as of August 26, 2026
$164.84 as of August 26, 2026
Distribution yield
7.57%
14.16%
2.88%
2.38%
Distribution Safety Score™
75
90
100
95
Expense ratio
0.35%
0.35%
0.06%
0.04%
AUM
$46.3B
$41.4B
$112B
$83.7B
Distribution frequency
Monthly
Monthly
Quarterly
Quarterly
Objective
Seeks monthly income and lower volatility than the broad U.S. large-cap market by combining an actively managed portfolio of equities with equity-linked notes that sell call options on the S&P 500 Index.
Seeks monthly income by combining an actively managed portfolio of equities drawn largely from the Nasdaq-100 Index with equity-linked notes that sell call options on that benchmark.
Seeks to track as closely as possible, before fees and expenses, the total return of the Dow Jones U.S. Dividend 100 Index, which measures the performance of high dividend yielding stocks issued by U.S. companies with a record of consistently paying dividends, selected for fundamental strength relative to their peers based on financial ratios.
Seeks to track the performance of the FTSE High Dividend Yield Index, which offers exposure to dividend-paying large-cap companies that exhibit value characteristics within the U.S. equity market. The index includes stocks with a history of paying above-average dividends.
Asset class
Equity
Equity
Equity
Equity
Inception date
05/20/2020
05/03/2022
10/20/2011
11/10/2006
Beta
0.43
0.8
0.56
0.68
Last dividend
$0.3666
$0.7050
$0.2525
$0.9800
Ex-dividend date
08/03/2026
08/03/2026
06/24/2026
06/18/2026
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. JEPQ 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.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
JPMorgan is a major provider of ETFs spanning multiple asset classes and strategies, with particular strength in income-focused funds including their popular covered call strategy lineup. Their fund family encompasses broad categories including bond, equity, factor, income, index, international, municipal, and sector ETFs, providing investors with diverse exposure options across markets and investment styles. The issuer offers both core indexed strategies and actively managed solutions, serving investors seeking everything from traditional dividend income to sophisticated factor-based and thematic approaches.
See our curated list of related YouTube videos on JEPI and JEPQ.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Schwab is a major provider of low-cost, broad-based ETFs known for making investing accessible to individual investors through its discount brokerage platform. The issuer's fund lineup spans multiple categories including core index funds, dividend and income-focused strategies, factor-based approaches, international exposure, fixed income, and digital assets, with popular core holdings like SCHB (U.S. broad market) and SCHD (dividend appreciation) alongside more specialized thematic offerings. Schwab's ETF suite is characterized by its breadth across asset classes and investment styles, competitive expense ratios, and integration with its retail brokerage ecosystem.
See our curated list of related YouTube videos on SCHD.
ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.
Vanguard is one of the largest and most established ETF issuers, known for low-cost, broadly diversified fund offerings built on passive indexing principles. Their lineup spans multiple asset classes and strategies, including core equity and bond index funds, dividend-focused portfolios, ESG-screened options, factor-based strategies, sector exposure, target-date retirement funds, and international investments across developed and emerging markets. The platform is characterized by its emphasis on accessibility and cost efficiency across a comprehensive range of fund families, serving both individual investors seeking broad market exposure and those pursuing specific income, sustainability, or thematic objectives.
See our curated list of related YouTube videos on VYM.
JEPI (JPMorgan Equity Premium Income ETF), JEPQ (JPMorgan Nasdaq Equity Premium Income ETF), SCHD (Schwab U.S. Dividend Equity ETF), VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are dividend ETFs that take different approaches.
JEPQ offers the highest reported yield at 14.16%, followed by JEPI at 7.57%, SCHD at 2.88%, VYM at 2.38%.
VYM is the cheapest with an expense ratio of 0.04%, compared to 0.06% for SCHD and 0.35% for JEPI and 0.35% for JEPQ.
SCHD is the largest fund by assets ($112B), which generally means tighter spreads and better liquidity.
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On a $10,000 investment: JEPI generates ~$63.08/month, JEPQ generates ~$118.00/month, SCHD generates ~$24.00/month, VYM generates ~$19.83/month at current distribution rates.
JEPI yield7.57%
JEPQ yield14.16%
SCHD yield2.88%
VYM yield2.38%
Cost & efficiency
Over 10 years on $10,000: JEPI costs ~$350, JEPQ costs ~$350, SCHD costs ~$60, VYM costs ~$40 in fees (simplified, not compounded).
JEPI ER0.35%
JEPQ ER0.35%
SCHD ER0.06%
VYM ER0.04%
Strategy & risk
JEPI is an actively managed ETF built around a derivative overlay strategy; JEPQ is actively managed around Nasdaq-100 exposure with a covered call approach; SCHD tracks Dow Jones U.S. Dividend 100 Index; VYM tracks FTSE High Dividend Yield Index.
JEPI beta0.43
JEPQ beta0.8
SCHD beta0.56
VYM beta0.68
Fund details
JEPI is managed by JPMorgan (launched 05/20/2020) with $46.3B in assets. JEPQ is managed by JPMorgan (launched 05/03/2022) with $41.4B in assets. SCHD is managed by Schwab (launched 10/20/2011) with $112B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $83.7B in assets.
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Frequently asked questions
JEPI vs JEPQ vs SCHD: how do the three income approaches differ?
JEPI and JEPQ are JPMorgan option-income funds: they hold equities and sell index options, paying the premium out monthly. JEPI's book is built around the S&P 500 and screened for lower volatility; JEPQ's is built around the Nasdaq-100, which carries richer option premiums and deeper drawdowns. SCHD does none of that — it screens Dow Jones U.S. Dividend 100 Index for established dividend payers and passes through the dividends those companies declare, quarterly. As of August 2026 that lands at 7.57% for JEPI, 14.16% for JEPQ, and 2.88% for SCHD, at expense ratios of 0.35%, 0.35%, and 0.06%. The option premium is both the higher yield and the capped upside; SCHD's smaller payout comes with full participation in whatever its holdings do.
Which of JEPI, JEPQ, SCHD, and VYM is best for dividend income?
It depends on your goals. JEPQ currently offers the highest reported distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility, and funds without an established distribution history have no comparable yield to evaluate. Consider your time horizon and risk tolerance.
What is the difference between JEPI, JEPQ, SCHD, and VYM?
JEPI (JPMorgan Equity Premium Income ETF) is an actively managed ETF built around a derivative overlay strategy, issued by JPMorgan. JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) is actively managed around Nasdaq-100 exposure with a covered call approach, issued by JPMorgan. SCHD (Schwab U.S. Dividend Equity ETF) tracks Dow Jones U.S. Dividend 100 Index, issued by Schwab. VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks FTSE High Dividend Yield Index, issued by Vanguard.
Can I hold JEPI, JEPQ, SCHD, and VYM together?
Yes — nothing prevents holding them together. 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.
Which of JEPI, JEPQ, SCHD and VYM is safest?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SCHD scores 100, VYM scores 95, JEPQ scores 90, JEPI scores 75, so SCHD's payout currently looks the more resilient of the group. JEPI has also shown lower price volatility (beta 0.43 vs 0.80 for JEPQ). 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 the lowest fees among JEPI, JEPQ, SCHD, and VYM?
JEPI has an expense ratio of 0.35%, JEPQ has an expense ratio of 0.35%, SCHD has an expense ratio of 0.06%, VYM has an expense ratio of 0.04%. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 generate in each?
$10,000 in JEPI yields ~$63.08/month ($757.00/year). $10,000 in JEPQ yields ~$118.00/month ($1,416.00/year). $10,000 in SCHD yields ~$24.00/month ($288.00/year). $10,000 in VYM yields ~$19.83/month ($238.00/year).
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