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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.

Data updated August 13, 2026

Best for

  • JEPQInvestors who want to maximize current income — roughly 14.10%, generated by selling options premium.
  • SPYInvestors who want simple, diversified core exposure in one low-cost fund.

Jump to the side-by-side numbers

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
Last Close$60.00 as of August 13, 2026$772.49 as of August 13, 2026
Distribution yield14.10%0.99%
Distribution Safety Score™ 90100
Expense ratio0.35%0.10%
AUM$39.9B$812B
Distribution frequencyMonthlyQuarterly
Underlying indexNASDAQ 100S&P 500 Index
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
Beta0.81.0
Last dividend$0.7050$1.9035
Ex-dividend date08/03/202606/18/2026

Bottom lineChoose JEPQ if you want to maximize current income — roughly 14.10%, generated by selling options premium. Choose SPY if you want simple, diversified core exposure in one low-cost fund. 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
ETFs76
Total AUM$333B

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
ETFs180
Total AUM$2127B

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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Visual comparison

Key metrics

Projected income on $10K

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

Total returns

JEPQ has lagged SPY over the trailing twelve months, posting a 21.39% total return against 22.82%. The lead holds up over 3 years too: SPY has compounded at 21.44% a year, against 19.78% for JEPQ. 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.
SymbolYTD1Y3YSince May 2022Volatility Sharpe Sortino Max drawdown
JEPQ10.63%21.39%19.78%16.04%15.7%0.871.23-20.1%
SPY13.68%22.82%21.44%16.31%15.3%0.981.42-18.8%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 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.

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 14.10% 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 0.10% compared to 0.35%.

They track different benchmarks: JEPQ is linked to NASDAQ 100 while SPY tracks S&P 500 Index, which means their performance drivers differ.

SPY is the larger fund by assets ($812B), which generally means tighter spreads and better liquidity.

Who should choose each?

Choose JEPQ

JPMorgan Nasdaq Equity Premium Income ETF

  • Want to maximize current income — JEPQ distributes roughly 14.10% 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 simple, diversified core exposure as a portfolio building block.
  • Want to keep costs low — a 0.10% 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 $117.50/month, while SPY would produce $8.25/month, at current distribution rates.

JEPQ yield14.10%
SPY yield0.99%
Monthly diff on $10K$109.25

Cost & efficiency

Over 10 years on $10,000, JEPQ would cost approximately $350 in fees vs $100 for SPY (simplified, not compounded). The $250.00 difference may be offset by yield or performance.

JEPQ ER0.35%
SPY ER0.10%

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 0.8 for JEPQ and 1.0 for SPY, indicating JEPQ is less volatile relative to the market.

JEPQ beta0.8
SPY beta1.0

Fund details

JEPQ is managed by JPMorgan (launched 05/03/2022) with $39.9B in assets. SPY is managed by State Street (launched 01/22/1993) with $812B in assets.

JEPQ AUM$39.9B
SPY AUM$812B
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Frequently asked questions

What is the current distribution yield for JEPQ and SPY?

JEPQ currently distributes 14.10% and SPY 0.99%, based on fund data updated August 2026. Distribution yield 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 0.80 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 0.10%. 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 $117.50 per month ($1,410.00 annually). The same in SPY would produce about $8.25 per month ($99.00 annually).

Which has performed better historically, JEPQ or SPY?

JEPQ has lagged SPY over the trailing twelve months, posting a 21.39% total return against 22.82%. The lead holds up over 3 years too: SPY has compounded at 21.44% a year, against 19.78% for JEPQ. 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 August 8, 2026.

Overview

JEPQ is an actively managed ETF that combines Nasdaq-100 stocks with a systematic call-selling overlay to generate monthly income, targeting a 14.16% distribution rate. SPY is a passive, index-tracking ETF that holds the 500 largest U.S. companies and distributes quarterly at 0.98%. The fundamental difference is income generation method: JEPQ sells upside through options to fund distributions; SPY simply passes through dividends from its underlying holdings.

How they differ

The biggest difference is strategy and structure. JEPQ uses equity-linked notes to systematically sell call options on the Nasdaq-100, capping potential gains to fund a high yield. SPY holds a diversified large-cap index with no options activity—it's a buy-and-hold vehicle that moves with the market. Second, distribution approach: JEPQ pays monthly at 14.16%, while SPY pays quarterly at 0.98%. That income disparity is not free—it comes from capped upside and the cost of the derivative overlay. Third, scope and cost: SPY is passively managed with a 0.10% expense ratio and $812B in assets. JEPQ is actively managed with a 0.35% expense ratio and $39.9B in assets. SPY's beta is 1.0 (moves with the S&P 500); JEPQ's beta is 0.8 (less volatile than its Nasdaq-100 backing, partly due to the call-selling dampening effect).

Who each is best for

JEPQ: Fits income-focused investors in a low-interest-rate environment who accept capped capital appreciation in exchange for consistent monthly cash flow. Those who view their equity allocation as a fixed-income substitute may find the yield attractive.

SPY: Designed for core portfolio builders seeking broad U.S. large-cap exposure with minimal cost and maximum flexibility. Investors prioritizing long-term compounding over current income, or those building a diversified asset-allocation backbone, align with this vehicle.

Key risks to know

  • NAV erosion from high distribution yield. A 14.16% annual distribution rate on JEPQ is roughly double the underlying Nasdaq-100's historical dividend yield, implying material return-of-capital treatment or capital consumption over time. NAV erosion at this level is a structural risk, not a temporary phenomenon.
  • Call-selling cap on upside. JEPQ's covered-call overlay systematically caps gains during strong Nasdaq rallies. A multi-year bull market in large-cap tech could significantly underperform SPY, despite the higher yield.
  • Concentration in Nasdaq-100 exposure. JEPQ draws its equity portfolio largely from the Nasdaq-100, which skews toward mega-cap tech and growth stocks. Sector downturns in that index pose outsized risk compared to SPY's broader S&P 500 diversification.
  • Options-derived volatility and rollover risk. Monthly rebalancing of the equity-linked notes requires ongoing option contracts to be rolled. Sharp moves in implied volatility or deteriorating liquidity could raise implicit costs and complicate the sustainability of the stated distribution.

Bottom line

If you want monthly income from a concentrated equity bucket and can live with capped upside, JEPQ offers a systematic trade-off. If you value broad diversification, minimal fees, and the full compounding upside of large-cap U.S. equities, SPY is the foundational choice. The key tension is between JEPQ's high current yield and SPY's long-term return potential—a decision that turns on your income needs and time horizon. Past performance of either approach doesn't 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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