Covered call ETFs on the Nasdaq-100 are something I’ve been looking at for the income side of my portfolio, and QQQI and JEPQ are the two I keep coming back to. Both hold Nasdaq-100 stocks and both pay out every month. In this article, we will be doing a comparison of QQQI (NEOS Nasdaq-100 High Income ETF) vs JEPQ (JPMorgan Nasdaq Equity Premium Income ETF).
The main difference between QQQI vs JEPQ is, QQQI sells Nasdaq-100 index (NDX) call options directly, which gives it Section 1256 tax treatment in the US. JEPQ, on the other hand, earns its option income through equity-linked notes (ELNs), and that income is generally taxed as ordinary income.
Read on for a more comprehensive coverage.
Quick Verdict
QQQI pays the higher and steadier monthly income and has edged ahead on total return so far, but costs almost twice as much (0.68% vs 0.35%). JEPQ is the cheaper, bigger fund with the longer track record. QQQI’s main tax advantage applies to US taxpayers, not to investors in Singapore.
An Overview of QQQI vs JEPQ
| NEOS Nasdaq-100 High Income ETF / (QQQI) | JPMorgan Nasdaq Equity Premium Income ETF / (JEPQ) | |
|---|---|---|
| Fund Objective | High monthly income in a tax-efficient manner, with potential for equity appreciation | Income from Nasdaq-100 stocks plus ELNs (actively managed) |
| Management Style | Active ETF | Active ETF |
| Inception Date | 29 Jan 2024 (first trading day 30 Jan 2024) | 3 May 2022 |
| Expense Ratio | 0.68% | 0.35% |
| How calls are written | Sells (and sometimes buys) NDX index call options | Equity-linked notes (ELNs) |
| Number of Holdings | 107 | 111 |
| % of 10 largest holdings | 47.17% | 43.52% |
| 12-month trailing yield (issuer-published) | 14.34% (12-month trailing distribution rate) | 11.56% (12-month rolling dividend yield) |
| AUM | $15.33 B (13 Oct 2026) | $44.32 B (30 Sep 2026) |
QQQI holds the stocks of the Nasdaq-100 Index and sells NDX index call options against them. NEOS says the call strategy “may include both sold and purchased NDX index options”, which leaves some room for upside when markets rally.
JEPQ holds a portfolio of mainly Nasdaq-100 stocks picked by JPMorgan’s research team, and gets its option income from ELNs. That’s why its holdings are not exactly the index weights.
QQQI has an expense ratio of 0.68% compared to JEPQ’s 0.35%. This means that for every $10,000 you invest, you are paying $68 and $35 respectively each year in management expenses. JEPQ is almost half the cost.
The 12-month yield for QQQI (14.34%) is higher than that of JEPQ (11.56%). Both are a long way above what the Nasdaq-100 itself pays, because most of the payout comes from selling away part of the upside, not from company dividends.
JEPQ is also the much bigger fund at about $44 billion, roughly three times QQQI’s $15 billion. Both are large enough that liquidity shouldn’t be a worry for a retail investor like me.
Main Difference between QQQI vs JEPQ
How QQQI writes calls
- Sells call options on the Nasdaq-100 Index (NDX) itself, not on individual stocks or the QQQ ETF
- NDX options are cash-settled and count as Section 1256 contracts in the US
- The fund is actively managed and looks for tax-loss harvesting opportunities
- May buy calls too, to keep some upside in rising markets
How JEPQ writes calls
- Buys equity-linked notes (ELNs) issued by banks. Each ELN bundles the Nasdaq-100 exposure with a sold call option, and pays JEPQ a coupon
- The rest of the fund is the stock portfolio
- ELNs carry counterparty risk. If the issuing bank can’t pay, the note loses value (JPMorgan flags this in its own risk disclosures)
QQQI’s set-up is simpler to explain. JEPQ’s ELN route is less transparent, but J.P. Morgan has used the same approach in JEPI since 2020.
Fund Composite QQQI vs JEPQ
Top 10 Holdings
| NEOS Nasdaq-100 High Income ETF (QQQI) | JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) |
|---|---|
| NVIDIA Corp (NVDA) / 8.28% | NVIDIA Corp (NVDA) / 7.34% |
| Apple Inc. (AAPL) / 7.57% | Apple Inc. (AAPL) / 6.53% |
| Microsoft Corp (MSFT) / 6.00% | Microsoft Corp (MSFT) / 5.49% |
| Micron Technology (MU) / 4.69% | Alphabet Inc. (GOOG) / 4.82% |
| Amazon.com (AMZN) / 4.26% | Micron Technology (MU) / 4.41% |
| Advanced Micro Devices (AMD) / 4.09% | Advanced Micro Devices (AMD) / 3.89% |
| Meta Platforms (META) / 3.36% | Amazon.com (AMZN) / 3.85% |
| Alphabet Inc. (GOOGL) / 3.13% | Meta Platforms (META) / 3.11% |
| Alphabet Inc. (GOOG) / 2.91% | Tesla Inc. (TSLA) / 2.11% |
| Tesla Inc. (TSLA) / 2.89% | Broadcom Inc. (AVGO) / 1.97% |
| 47.17% of total asset | 43.52% of total asset |
From the above table, we can see that 9 of the top 10 counters are the same. Whichever fund you pick, you are basically buying the same big tech names. The difference really lies in the option overlay and the tax wrapper.
Sector Breakdown
| Sector | QQQI | JEPQ |
|---|---|---|
| Electronic Technology | 41.59% | 41.22% |
| Technology Services | 26.00% | 24.59% |
| Retail Trade | 9.64% | 9.61% |
| Producer Manufacturing | 4.26% | 4.42% |
| Health Technology | 3.79% | 4.14% |
| Consumer Durables | 2.91% | 2.51% |
| Communications | 1.98% | 2.18% |
| Consumer Services | 1.95% | 2.12% |
| Consumer Non-Durables | 1.77% | 2.01% |
| All other sectors, cash and options | 6.11% | 7.20% |
The sector mix is almost identical. Both funds are roughly two-thirds technology, so neither gives you much diversification away from big tech.
Yield and Monthly Payouts
Both funds pay every month. Here are the last 12 distributions for each fund, listed by ex-dividend date.
| # | QQQI ex-date | QQQI ($) | JEPQ ex-date | JEPQ ($) |
|---|---|---|---|---|
| 1 | 22 Oct 2025 | 0.6445 | 3 Nov 2025 | 0.4755 |
| 2 | 26 Nov 2025 | 0.6304 | 1 Dec 2025 | 0.5532 |
| 3 | 24 Dec 2025 | 0.6413 | 31 Dec 2025 | 0.5761 |
| 4 | 21 Jan 2026 | 0.6359 | 2 Feb 2026 | 0.4657 |
| 5 | 18 Feb 2026 | 0.6140 | 2 Mar 2026 | 0.5090 |
| 6 | 18 Mar 2026 | 0.6089 | 1 Apr 2026 | 0.5586 |
| 7 | 22 Apr 2026 | 0.6297 | 1 May 2026 | 0.5910 |
| 8 | 20 May 2026 | 0.6589 | 1 Jun 2026 | 0.5644 |
| 9 | 16 Jun 2026 | 0.6572 | 1 Jul 2026 | 0.6366 |
| 10 | 22 Jul 2026 | 0.6346 | 3 Aug 2026 | 0.7050 |
| 11 | 19 Aug 2026 | 0.6518 | 1 Sep 2026 | 0.6826 |
| 12 | 16 Sep 2026 | 0.6339 | 1 Oct 2026 | 0.5669 |
What’s interesting here is how steady QQQI’s payout is. Every month in the past year was between $0.61 and $0.66. JEPQ swings more, from $0.47 to $0.70, because its ELN coupons move with market volatility.
For the yield itself, I use the issuers’ own figures as of 30 Sep 2026: NEOS quotes a 14.34% 12-month trailing distribution rate for QQQI (and a 14.28% distribution rate based on the latest payout × 12), while JPMorgan quotes an 11.56% 12-month rolling dividend yield for JEPQ. Each issuer works these out a little differently, so don’t be surprised if you see slightly different numbers elsewhere.
Tax Treatment
This is where the two funds really part ways, at least for US investors.
QQQI: NEOS says its distributions so far have been classified as return of capital (ROC). ROC isn’t taxed when you receive it in the US; it lowers your cost base, so you pay tax later when you sell. On top of that, gains and losses on its NDX options fall under Section 1256, which means they’re taxed 60% as long-term and 40% as short-term capital gains, however long the fund held the option. Add tax-loss harvesting, and that’s the “tax-efficient” part of the pitch. One caveat: the monthly ROC labels are only estimates. The final split comes on the year-end Form 1099-DIV.
JEPQ: The coupons from its ELNs are generally taxed as ordinary income, and so are most of its distributions. That’s fine inside a tax-advantaged account, but less efficient in a regular taxable account for a US investor.
For us non-US investors (including those of us in Singapore): Section 1256 and the US capital gains rates don’t really apply to us. What matters is US withholding tax. Singapore isn’t on the IRS list of US income tax treaties (that list covers income tax treaties only), so dividend-type income from US-listed ETFs is generally subject to 30% withholding. Whether the ROC part of QQQI’s payouts gets withheld depends on how your broker classifies it, and some brokers refund over-withholding after the year-end reclassification. Please check with your broker before assuming QQQI’s tax edge carries over to you. Both funds also count as US assets for US estate tax (IRS).
QQQI vs JEPQ – Performance
Now that we know the main differences between these ETFs, let’s see if these lead to a performance difference.
QQQI has a short history, so I compared both funds from QQQI’s first trading day, 30 Jan 2024, to the 30 Sep 2026 month-end, the same date as the latest issuer fact sheets. That’s only about 2.7 years, so take it with a pinch of salt.
| 30 Jan 2024 – 30 Sep 2026 | QQQI | JEPQ |
|---|---|---|
| Closing price on 30 Jan 2024 | $49.84 | $51.96 |
| Closing price on 30 Sep 2026 | $55.55 | $61.26 |
| Price return | +11.47% | +17.90% |
| Total return, distributions reinvested | +62.99% | +57.79% |
| $10,000 invested, distributions reinvested | $16,299 | $15,779 |
From the table above, we can see that JEPQ held its price better (+17.90% vs +11.47%), but QQQI paid out more, and that put it ahead on total return by about 5.2 percentage points. Both trailed the Nasdaq-100 itself: NEOS’s fact sheet shows the Nasdaq-100 up 76.23% since QQQI’s inception, against 62.42% for QQQI at NAV.
Calendar-Year Total Returns
| Period | QQQI | JEPQ |
|---|---|---|
| 2024 | 19.84% (partial: 30 Jan – 31 Dec 2024, market price) | 24.82% NAV / 24.89% market price (full year, published) |
| 2025 (full year) | 18.63% (market price) | 15.19% NAV / 15.21% market price (published) |
| 2026 YTD (to 30 Sep 2026) | 14.67% NAV / 14.64% market price (published) | 14.19% NAV / 14.17% market price (published) |
Over 2025, QQQI was ahead, and this year the two are very close.
For reference, here are the issuers’ own annualised returns at NAV as of 30 Sep 2026:
| 1 Year | 3 Year | Since Inception | |
|---|---|---|---|
| QQQI | 17.97% | NA | 19.91% (from 29 Jan 2024) |
| JEPQ | 19.45% | 21.84% | 16.89% (from 3 May 2022) |
Quite interestingly, JEPQ actually did better over the last year, so the lead has swapped back and forth.
What $10,000 Paid You
| QQQI | JEPQ | |
|---|---|---|
| Closing price, 30 Sep 2025 | $54.20 | $57.52 |
| Shares bought with $10,000 | 184.50 | 173.85 |
| Payouts, Oct 2025 – Sep 2026 | 12 | 12 |
| Income before tax | $1,410 | $1,176 |
| Income after 30% withholding | $987 | $823 |
If you had put $10,000 into each fund at the close on 30 Sep 2025, QQQI would have paid you about $1,410 and JEPQ about $1,176 over the next 12 months. After the 30% US withholding tax that generally applies to us in Singapore, that drops to about $987 and $823. Both funds are also US assets for US estate tax. Part of QQQI’s payout has been classed as return of capital, so your broker may withhold less; please check. Price changes are not included.
In Bad Times: Drawdowns and Payouts
| QQQI | JEPQ | |
|---|---|---|
| Max drawdown, total return | -20.0% | -20.1% |
| Peak to trough | 19 Feb 2025 – 8 Apr 2025 | 19 Feb 2025 – 8 Apr 2025 |
| Payout before the drop | $0.619 (Nov 2024 – Jan 2025, monthly avg) | $0.486 (Nov 2024 – Jan 2025, monthly avg) |
| Payout during the drop | $0.577 (Feb – Apr 2025, monthly avg) | $0.491 (Feb – Apr 2025, monthly avg) |
| Change in payout | -6.8% | +1.0% |
Over the common period from 30 Jan 2024 to 30 Sep 2026, the worst fall for both funds came in the early-2025 sell-off. QQQI fell 20.0% and JEPQ 20.1% from peak to trough, with payouts reinvested, so JEPQ fell further. QQQI’s payout changed by -6.8% and JEPQ’s by +1.0% during the drop, compared with the months before it.
Conclusion – Which Nasdaq-100 Income ETF Is Better?
Based on the short history we have, QQQI seems to deliver a slightly higher total return (about 5 percentage points since 30 Jan 2024) and a higher, steadier monthly payout.
That said, it costs almost twice as much (0.68% vs 0.35%), its price has grown less, and its main selling point is a US tax advantage that most of us in Singapore don’t get, since we face 30% withholding tax and US estate tax exposure instead.
If you are a US taxpayer holding these in a taxable account, QQQI might be the better choice. If you want a cheaper, bigger fund with a longer track record, then JEPQ might be the one to go with.
For Singapore-based investors, the 30% US withholding tax and US estate tax exposure apply to both funds, so neither has a tax edge.
Both these ETFs give up some upside for income, so they work more as an income complement than as the core of a long-term growth portfolio.
Ireland-domiciled alternative? JEPQ has a close Ireland-domiciled match; nothing is truly close for QQQI.
| Alternative | Type | ISIN | TER | Payout | Closest to | Key difference |
|---|---|---|---|---|---|---|
| iShares Nasdaq 100 UCITS ETF (Acc) (CNDX) | UCITS fund | IE00B53SZB19 | 0.30% | None (accumulating) | QQQI and JEPQ (index only) | Plain Nasdaq-100, no options |
| JPMorgan Nasdaq Equity Premium Income Active UCITS ETF USD (dist) | UCITS fund | IE000U9J8HX9 | 0.35% | Monthly | JEPQ (close match) | Active Nasdaq-100 stocks, partial call overlay |
| Global X Nasdaq 100 Covered Call UCITS ETF D | UCITS fund | IE00BM8R0J59 | 0.45% | Monthly | QQQI | Synthetic; calls on the whole portfolio |
| IncomeShares Nasdaq 100 Options ETP | ETP | XS2875105608 | 0.45% | Monthly | QQQI and JEPQ | A note, not a fund; holds QQQ, sells puts |
The JPMorgan fund has the same manager and strategy as JEPQ, though its overlay may use options rather than ELNs. The IncomeShares ETPs are notes issued by Leverage Shares PLC, so holders carry issuer, collateral and counterparty risk.
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As always, remember that Past Performance is No Guarantee of Future Results. And none of the content that I write on this site should be taken as financial advice.
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