JEPI vs QQQ
JEPI vs QQQ
JPMorgan Equity Premium Income ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. JEPI offers more diversification with 105 holdings.
Side-by-Side Comparison
| Metric | JEPI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.18% | |
| AUM | $45.5B | $455.8B | |
| Dividend Yield | 8.35% | 0.41% | |
| Holdings | 121 | 108 | |
| YTD Return | +4.23% | +14.45% | |
| 1Y Return | +9.78% | +24.70% | |
| 3Y Return (annualized) | +9.46% | +24.19% | |
| 5Y Return (annualized) | +7.28% | +14.49% | |
| Volatility (annualized) | 10.0% | 30.6% | |
| Max Drawdown | -13.7% | -83.0% | |
| Fund Family | J.P. Morgan Asset Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 20, 2020 | Mar 10, 1999 |
JEPI vs QQQ Performance
JPMorgan Equity Premium Income ETF (JEPI) is a ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year JEPI returned +9.78% while QQQ returned +24.70%. Year to date, JEPI is up 4.23% versus a gain of 14.45% for QQQ.
Over three years, JEPI compounded at +9.46% per year against +24.19% for QQQ; over five years the annualized figures are +7.28% and +14.49% respectively. Across the full 6-year window we track, QQQ has the edge at +12.98% annualized vs +10.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 10.0% for JEPI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -13.7% for JEPI and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JEPI charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, JEPI currently yields 8.35% against 0.41% for QQQ.
Holdings Overlap
JEPI and QQQ share 27 holdings out of 181 unique holdings combined, representing a 19.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in JEPI | Weight in QQQ | Difference |
|---|---|---|---|
| NVDA | 1.42% | 7.88% | 6.46% |
| AAPL | 1.40% | 7.46% | 6.06% |
| MSFT | 1.28% | 4.65% | 3.37% |
| AMZN | Pro | Pro | Pro |
| GOOGL | Pro | Pro | Pro |
| META | Pro | Pro | Pro |
| AVGO | Pro | Pro | Pro |
| WMT | Pro | Pro | Pro |
| COST | Pro | Pro | Pro |
| LRCX | Pro | Pro | Pro |
See all 10 holdings JEPI shares with QQQ Exact weights in each fund and the difference, for every overlapping position. Get FundXLS Pro: $29/moFirst 500 subscribers, then $49/mo. Cancel anytime. | |||
Frequently Asked Questions
Which is cheaper, JEPI or QQQ?
JEPI has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $17 per year of difference.
Which performed better, JEPI or QQQ?
Over the past year JEPI returned +9.78% vs +24.70% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), JEPI annualized +10.12% vs +12.98% for QQQ. Past performance does not guarantee future results.
Which is riskier, JEPI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 10.0% for JEPI. Worst drawdown: JEPI -13.7% vs QQQ -83.0%.
Should I hold both JEPI and QQQ?
JEPI and QQQ have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JEPI and QQQ?
JEPI and QQQ share 27 common holdings with a 19.5% weight overlap. Combined, they hold 181 unique securities.
Which pays a higher dividend, JEPI or QQQ?
JEPI yields 8.35% while QQQ yields 0.41%, so JEPI currently pays the higher dividend yield.
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