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ETF Comparison

JEPQ vs SPY: Which Is the Better Pick in 2026?

A head-to-head comparison of JPMorgan Nasdaq Equity Premium Income ETF and SPDR S&P 500 ETF Trust covering yield, cost, risk, and income potential.

Updated September 30, 2026

How these figures are calculated: methodology.

Best for

  • JEPQInvestors who want Nasdaq-100 exposure and can accept a more concentrated book.
  • SPYInvestors who want broader S&P 500 exposure and lower measured market sensitivity.

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.

JEPQ has outpaced SPY over the trailing twelve months, posting a 19.73% total return against 16.15%. The picture flips over 3 years, though — SPY has compounded at 22.81% a year, ahead of JEPQ at 21.60%. 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 cumulative3Y annualizedSince May 2022Volatility Sharpe Sortino Max drawdown
JEPQ14.25%19.73%21.60%16.36%15.6%0.971.38-20.1%
SPY12.50%16.15%22.81%15.51%15.2%1.061.55-18.8%

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 May 2022” measures every fund from May 4, 2022 — 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 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.
MetricJEPQSPY
Full nameJPMorgan Nasdaq Equity Premium Income ETFSPDR S&P 500 ETF Trust
IssuerJPMorganState Street
Underlying indexNasdaq-100S&P 500 Index
Last Close$61.26 as of September 30, 2026$762.63 as of September 30, 2026
Distribution rate13.37%0.99%
Trailing 12-month yield11.04%0.99%
Distribution Safety Score™ 90100
Safety-Adjusted Yield 12.03%0.99%
Expense ratio0.35%0.0945%
AUM$43.9B$817B
Distribution frequencyMonthlyQuarterly
ObjectiveSeeks 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.Track the S&P 500 Index before expenses.
Asset classEquityEquity
Inception date05/03/202201/22/1993
Beta0.811.0
Last dividend$0.68255$1.88883
Ex-dividend date09/01/202609/18/2026

Bottom lineChoose JEPQ if you want Nasdaq-100 exposure and can accept a more concentrated book. Choose SPY if you want broader S&P 500 exposure and lower measured market sensitivity. There's no free lunch: JEPQ's payout comes from selling options, which caps upside and can erode the share price over time, while SPY 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. 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.

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.

JPMorgan
ETFs78
Total AUM$350B

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 JEPQ.

See all JPMorgan ETFs
State Street
ETFs179
Total AUM$2148B

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

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on SPY.

See all State Street ETFs

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Quick verdict

JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and SPY (SPDR S&P 500 ETF Trust) are both dividend ETFs, but they take different approaches.

JEPQ offers the higher yield at 13.37% vs 0.99% for SPY. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

SPY is cheaper with an expense ratio of 0.0945% compared to 0.35%.

They have different reference exposures: JEPQ is linked to Nasdaq-100 while SPY is linked to S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($817B), but assets alone do not establish trading costs or liquidity.

Who should choose each?

Choose JEPQ

JPMorgan Nasdaq Equity Premium Income ETF

  • Want Nasdaq-100 exposure — fewer names, heavier technology weight, and typically a higher current distribution.
  • Want to maximize current income — JEPQ distributes roughly 13.37% from selling options premium, vs 0.99% for SPY.
  • Are comfortable with an options-income strategy — a large payout in exchange for capped upside.
  • Prefer lower volatility — a beta of 0.8 vs 1.0 for SPY.

Choose SPY

SPDR S&P 500 ETF Trust

  • Want broader S&P 500 exposure — more sectors, less mega-cap concentration, and typically lower beta.
  • Want simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.0945% expense ratio vs 0.35% for JEPQ.

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, JEPQ would generate roughly $111.42 cash per distribution, while SPY would produce $24.75 cash per distribution, at current distribution rates.

JEPQ yield13.37%
SPY yield0.99%
Cash diff on $10K$86.67

Cost & efficiency

Over 10 years on $10,000, JEPQ would cost approximately $350 in fees vs $95 for SPY (simplified, not compounded). The $255.50 difference may be offset by yield or performance.

JEPQ ER0.35%
SPY ER0.0945%

Strategy & risk

JEPQ is actively managed around Nasdaq-100 exposure with a covered call approach, while SPY tracks S&P 500 Index with a large cap approach. Beta is 0.81 for JEPQ and 1.0 for SPY, making JEPQ the less volatile of the two by this measure.

JEPQ beta0.81
SPY beta1.0

Fund details

JEPQ is managed by JPMorgan (launched 05/03/2022) with $43.9B in assets. SPY is managed by State Street (launched 01/22/1993) with $817B in assets.

JEPQ AUM$43.9B
SPY AUM$817B
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Frequently asked questions

What is the current distribution rate for JEPQ and SPY?

JEPQ currently distributes 13.37% and SPY 0.99%, 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 JEPQ or SPY better for dividend income?

It depends on your goals. JEPQ 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 JEPQ and SPY?

JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) is actively managed around Nasdaq-100 exposure with a covered call approach, while SPY (SPDR S&P 500 ETF Trust) tracks S&P 500 Index with a large cap approach. They are issued by JPMorgan and State Street respectively.

Can I hold both JEPQ and SPY?

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 JEPQ or SPY safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — SPY scores 100, JEPQ scores 90, so SPY's payout currently looks the more resilient of the two. JEPQ has also shown lower price volatility (beta 0.81 vs 1.00 for SPY). 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, JEPQ or SPY?

JEPQ has an expense ratio of 0.35% while SPY charges 0.0945%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in JEPQ vs SPY generate?

At current rates, $10,000 in JEPQ would generate roughly $111.42 cash per distribution ($1,337.00 annually). The same in SPY would produce about $24.75 cash per distribution ($99.00 annually).

Which has performed better historically, JEPQ or SPY?

JEPQ has outpaced SPY over the trailing twelve months, posting a 19.73% total return against 16.15%. The picture flips over 3 years, though — SPY has compounded at 22.81% a year, ahead of JEPQ at 21.60%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

More comparisons to explore

JEPQ vs SPY — at a glance

Generated September 26, 2026.

Overview

JEPQ is an actively managed ETF that holds Nasdaq-100 stocks and overlays them with short call options, generating income through premium collection. SPY is a passively managed ETF that tracks the S&P 500 Index with minimal cost. The core difference is that JEPQ pursues high current yield through derivatives, while SPY seeks broad market exposure with minimal interference.

How they differ

JEPQ's strategy fundamentally differs from SPY's: it caps upside by selling call options on its holdings to generate a 13.37% distribution rate, while SPY simply holds S&P 500 constituents and distributes 0.99% from dividends and capital gains. JEPQ's 0.81 beta means it moves with the Nasdaq-100 but dampened, whereas SPY's 1.0 beta equals market movement by design. Size differs dramatically: SPY manages $817B versus JEPQ's $43.9B, reflecting SPY's three-decade history (inception 01/22/1993) against JEPQ's launch in 05/03/2022.

Who each is best for

JEPQ: Fits investors who prioritize near-term income generation and accept that capped capital appreciation and concentrated Nasdaq-100 exposure align with their cash-flow objectives.

SPY: Fits investors seeking broad S&P 500 market participation with minimal cost, favoring long-term growth and compounding over high current payouts.

Key risks to know

  • NAV erosion at extreme yields. JEPQ's 13.37% annualized distribution rate leaves little room for price appreciation to fund payouts, creating material NAV-per-share erosion risk if the underlying Nasdaq-100 underperforms or if return-of-capital treatment masks principal decay.
  • Capped upside from short calls. JEPQ's call-selling strategy limits gains when Nasdaq-100 equities rally sharply. Investors forfeit participation above the strike price set on each roll, whereas SPY holders retain full upside.
  • Concentration in Nasdaq-100. JEPQ's focus on high-growth tech and internet stocks creates sector and individual-name risk absent from SPY's broader S&P 500 universe, including exposure to fewer than 100 constituents versus 500.
  • Options and rollover risk. JEPQ's returns depend partly on management's success timing call rolls and selecting strike prices. Adverse options positioning could drag performance or force distributions from principal in weak markets.

Bottom line

If you want equity market returns with minimal cost and full upside capture, SPY's 0.0945% expense ratio and broad S&P 500 exposure offer clarity. If you prioritize current income and accept that Nasdaq-100 concentration and capped capital gains are the tradeoff, JEPQ's 13.37% monthly payout may align with your cash-flow needs—though past performance doesn't predict future results, and the sustainability of such a high yield warrants ongoing scrutiny.

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.