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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 April 2, 2026

Side-by-side snapshot

JEPQVYM
Full nameJPMorgan Nasdaq Equity Premium Income ETFVanguard High Dividend Yield Index Fund ETF Shares
IssuerJPMorganVanguard
Price$54.96$148.10
Distribution yield10.58%2.26%
Expense ratio0.35%0.04%
AUM$34.6B$92.3B
Distribution frequencyMonthlyQuarterly
Underlying indexNASDAQ 100Basket (Vanguard High Dividend Yield ETF holdings)
ObjectiveCovered CallSeeks 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 classEquityEquity
Inception date05/03/202211/10/2006
Beta0.790.74
Last dividend$0.56$0.86
Ex-dividend date04/01/202603/20/2026

Visual comparison

Key metrics

Projected income on $10K

Quick verdict

JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) and VYM (Vanguard High Dividend Yield Index Fund ETF Shares) are both popular monthly-pay covered call ETFs, but they take different approaches.

JEPQ offers the higher yield at 10.58% vs 2.26% 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 0.04% 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 ($92.3B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, JEPQ would generate roughly $88.17/month while VYM would produce $18.83/month at current distribution rates. Both pay monthly distributions.

JEPQ yield10.58%
VYM yield2.26%
Monthly diff on $10K$69.33

Cost & efficiency

Over 10 years on $10,000, JEPQ would cost approximately $350 in fees vs $40 for VYM (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

JEPQ ER0.35%
VYM ER0.04%

Strategy & risk

JEPQ tracks NASDAQ 100 with a covered call approach, while VYM tracks Basket (Vanguard High Dividend Yield ETF holdings) using a 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. strategy. Beta is 0.79 for JEPQ and 0.74 for VYM, indicating VYM is less volatile relative to the market.

JEPQ beta0.79
VYM beta0.74

Fund details

JEPQ is managed by JPMorgan (launched 05/03/2022) with $34.6B in assets. VYM is managed by Vanguard (launched 11/10/2006) with $92.3B in assets.

JEPQ AUM$34.6B
VYM AUM$92.3B

Income calculator

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

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 strategy, while VYM (Vanguard High Dividend Yield Index Fund ETF Shares) tracks Basket (Vanguard High Dividend Yield ETF holdings) with a 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. 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 0.04%. 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 yields, $10,000 in JEPQ would generate roughly $88.17 per month ($1,058.00 annually). The same in VYM would produce about $18.83 per month ($226.00 annually).

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