ETF Comparison

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

A head-to-head comparison of JPMorgan Nasdaq Equity Premium Income ETF and Vanguard High Dividend Yield Index Fund ETF Shares covering yield, cost, risk, and income potential.

Data updated July 4, 2026

JPMorgan

ETFs74

Total AUM$282B

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

JPMorgan operates a diverse ETF lineup of 46 funds spanning bond, equity, factor, income, index, international, money market, municipal, and sector strategies, establishing itself as a broad-based player across multiple asset classes and investment approaches. The issuer is particularly known for its income-focused offerings, including popular tickers like JEPI (Equity Premium Income) and JEPQ (Equity Premium Income ETF), which employ covered call and options strategies to generate distributions. JPMorgan's portfolio ranges from core index and fixed income funds to specialized sector and international equity ETFs, positioning the firm to serve both income-seeking and growth-oriented investors across diversified markets.

See our curated list of related YouTube videos on JEPQ.

See all JPMorgan ETFs

Vanguard

ETFs115

Total AUM$4484B

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

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VYM.

See all Vanguard ETFs

Side-by-side snapshot

	JEPQ	VYM
Full name	JPMorgan Nasdaq Equity Premium Income ETF	Vanguard High Dividend Yield Index Fund ETF Shares
Issuer	JPMorgan	Vanguard
Last Close	$59.39 as of July 4, 2026	$159.48 as of July 4, 2026
Distribution yield	12.86%	2.46%
Distribution Safety Score	92	100
Expense ratio	0.35%	0.06%
AUM	$39.0B	$78.3B
Distribution frequency	Monthly	Quarterly
Underlying index	NASDAQ 100	Basket (Vanguard High Dividend Yield ETF holdings)
Objective	Covered Call	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
Inception date	05/03/2022	11/10/2006
Beta	0.77	0.7
Last dividend	$0.6366	$0.9800
Ex-dividend date	07/01/2026	06/18/2026

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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 outpaced VYM over the trailing twelve months, posting a 21.66% total return against 20.72%. The lead holds up over 3 years too: JEPQ has compounded at 19.00% a year, against 17.36% for VYM. Figures are total returns: price change plus every distribution reinvested.

Symbol	YTD	1Y	3Y	Since May 2022	Volatility	Sharpe	Sortino	Max drawdown
JEPQ	7.06%	21.66%	19.00%	15.59%	15.4%	0.84	1.18	-20.1%
VYM	10.82%	20.72%	17.36%	12.03%	12.5%	0.92	1.34	-14.5%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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 VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are both dividend ETFs, but they take different approaches.

JEPQ offers the higher yield at 12.86% vs 2.46% for VYM. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

VYM is cheaper with an expense ratio of 0.06% compared to 0.35%.

They track different benchmarks: JEPQ is linked to NASDAQ 100 while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings), which means their performance drivers differ.

VYM is the larger fund by assets ($78.3B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, JEPQ would generate roughly $107.17/month, while VYM would produce $20.50/month, at current distribution rates.

JEPQ yield12.86%

VYM yield2.46%

Monthly diff on $10K$86.67

Cost & efficiency

Over 10 years on $10,000, JEPQ would cost approximately $350 in fees vs $60 for VYM (simplified, not compounded). The $290.00 difference may be offset by yield or performance.

JEPQ ER0.35%

VYM ER0.06%

Strategy & risk

JEPQ tracks NASDAQ 100 with a covered call approach, while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach. Beta is 0.77 for JEPQ and 0.7 for VYM, indicating VYM is less volatile relative to the market.

JEPQ beta0.77

VYM beta0.7

Fund details

JEPQ is managed by JPMorgan (launched 05/03/2022) with $39.0B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $78.3B in assets.

JEPQ AUM$39.0B

VYM AUM$78.3B

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Frequently asked questions

Is JEPQ or VYM 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 VYM?

JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) tracks NASDAQ 100 with a covered call approach, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks Basket (Vanguard High Dividend Yield ETF holdings) with an index approach. They are issued by JPMorgan and Vanguard respectively.

Can I hold both JEPQ and VYM?

Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.

Which has lower fees, JEPQ or VYM?

JEPQ has an expense ratio of 0.35% while VYM charges 0.06%. Lower fees mean more of your investment returns stay in your pocket over time.

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

At current rates, $10,000 in JEPQ would generate roughly $107.17 per month ($1,286.00 annually). The same in VYM would produce about $20.50 per month ($246.00 annually).

Which has performed better historically, JEPQ or VYM?

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JEPQ vs VYM — at a glance

Generated June 2026 from current fund data.

Overview

JEPQ and VYM are both equity ETFs focused on income, but they generate yield in fundamentally different ways. JEPQ uses covered calls on the Nasdaq 100 to produce a 11.26% distribution rate, while VYM tracks a dividend-yield index of large-cap U.S. stocks with a 2.47% yield. The choice between them hinges on whether you're seeking synthetic income via options overlay or traditional dividend growth from established companies.

How they differ

The core difference is strategy: JEPQ sells call options against Nasdaq 100 holdings to generate premium income, while VYM simply holds a basket of high-dividend-paying large-cap stocks. This makes JEPQ's yield profile entirely synthetic and dependent on option pricing; VYM's yield comes from actual company dividends.

Second, the yield gap is massive. JEPQ distributes 11.26% monthly; VYM pays 2.47% quarterly. That gap reflects JEPQ's use of options to capture premium, not underlying profit growth. VYM's lower yield comes with lower volatility—VYM's beta is 0.7 versus JEPQ's 0.77, and VYM has been around since 2006, whereas JEPQ launched in May 2022.

Third, expense ratios tell opposite stories. JEPQ costs 0.35% to manage the overlay strategy; VYM costs just 0.06% to replicate an index. JEPQ's larger AUM of $39.0B reflects recent popularity with income hunters, while VYM's $78.3B is the result of nearly two decades of steady use as a core holding.

Who each is best for

JEPQ: Fits investors comfortable with options mechanics and NAV volatility who prioritize monthly cash flow over principal stability and can tolerate capped upside from the call overlay.

VYM: Fits investors seeking a straightforward, low-cost equity holding with genuine dividend income and minimal trading friction, with a longer time horizon and tolerance for the lower absolute yield.

Key risks to know

NAV erosion at high distribution yields. JEPQ's 11.26% annual distribution rate, if drawn from capital rather than underlying gains, can erode principal over time. A covered-call strategy caps stock appreciation at the strike price, potentially forcing the fund to sell winning positions and crystalize gains that are paid out to shareholders.

Call-strike risk and opportunity cost. When Nasdaq 100 components rally sharply, JEPQ's options are exercised and shares are called away. Holders miss upside beyond the strike, turning what could be a 20% stock gain into a capped 5–8% return plus premium.

Nasdaq concentration. JEPQ's underlying is the Nasdaq 100, a heavily tech-weighted index. VYM diversifies across value and dividend-payers across sectors, giving it broader exposure and lower single-sector drawdown risk.

Credit and earnings risk in dividend payers. VYM's holdings can cut or suspend dividends during downturns; JEPQ hedges this partly through the call premium, but both funds are exposed to economic contraction that reduces payouts.

Options volatility and gamma risk. JEPQ's value depends partly on implied volatility in the options market. A collapse in volatility—even if stocks stay flat—can reduce the premium JEPQ collects and depress the fund's NAV relative to its holdings' intrinsic value.

Bottom line

JEPQ appeals to investors prioritizing monthly cash flow and willing to sacrifice upside capture and principal stability for it; VYM appeals to those who want equity exposure, genuine dividend income, and simplicity at minimal cost. The 11% yield difference is real, but so is the gap in complexity and NAV risk. Past performance does not predict future results.

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