The Nasdaq-100 income ETF category has grown crowded fast, and expense ratios now vary by nearly a full percentage point between the cheapest and priciest options. That gap matters, because every basis point paid in fees comes directly out of a strategy already engineered to trade capital appreciation for monthly cash flow. The Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ:GPIQ) leads the pack on cost at a stated expense ratio of 0.29%, and the question is whether that price advantage translates into a better income vehicle than higher-yielding alternatives.
This piece looks at four ways to draw income from the Nasdaq-100: GPIQ, the NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI), the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ), and the Global X Nasdaq-100 Covered Call ETF (NASDAQ:QYLD). Each generates yield through options on Nasdaq-100 exposure, but the mechanics and tradeoffs diverge enough that no single fund suits every investor.
Why the Backdrop Matters
The Invesco QQQ Trust (NASDAQ:QQQ) is up about 18% year-to-date and roughly 31% over the past year. Bull runs like this expose the core tension in covered-call income strategies: writing call caps upside, so the funds on this list have all trailed the underlying index. The real question is how efficiently each converted forgone appreciation into distributable income, and how much of that income the fee structure allows investors to keep.
GPIQ: The Low-Cost Contender
The Goldman Sachs Nasdaq-100 Premium Income ETF is the reason for this article. Goldman Sachs runs the fund as an actively managed premium income strategy on the Nasdaq-100, writing calls on only a portion of the portfolio rather than the entire notional exposure. That partial-overwrite approach is the mechanism worth understanding. By leaving a slice of the portfolio uncapped, the fund preserves more equity upside than a full-overwrite strategy, which helps explain why GPIQ delivered a 30% total return over the past year and nearly 17% year-to-date while still funding monthly distributions.
The portfolio itself closely tracks the Nasdaq-100. Per Goldman’s disclosures, the top 10 holdings account for roughly 45% of assets, led by NVIDIA at 7.65%, Apple at 7.38%, and semiconductor overweights in Micron and AMD. That concentration is the same trap any Nasdaq-linked strategy carries, but it’s also the engine behind the option premium, since higher-volatility names sell richer calls.
On income, GPIQ paid $0.51905 in July after $0.51923 in June, both records for the fund. Trailing 12-month distributions total $5.62, translating to about a 9.7% yield at the current $58 share price. The forward annualized run rate is closer to 11%. Combine that with the 0.29% expense ratio, and GPIQ becomes hard to dismiss: investors keep more of the premium the strategy generates.
Tradeoffs to know: GPIQ is younger and smaller than JEPQ or QYLD, which can matter for bid-ask spreads on large orders, and the partial-overwrite means yields will always sit below full-overwrite peers.
JEPQ: The Actively Managed Heavyweight
The JPMorgan Nasdaq Equity Premium Income ETF takes a different route to generating income from the Nasdaq. Rather than writing calls directly on its holdings, the fund builds an actively selected equity portfolio that leans on Nasdaq-100 names and layers in equity-linked notes to synthesize the call-writing exposure. That ELN structure is the distinguishing mechanism. It lets portfolio managers customize the strike, tenor, and counterparty terms rather than being locked into a mechanical monthly schedule.
Cost is where JEPQ shines. Its 0.35% expense ratio undercuts most peers, and with more than $30 billion in assets, it’s the most liquid fund in the category. The tradeoff is structural: ELN income is generally taxed as ordinary income when distributed, which lowers the after-tax yield for investors holding the fund in a taxable brokerage account. In an IRA or 401(k), that concern disappears, and JEPQ becomes the default institutional-grade choice.
QQQI: Higher Yield, Tax-Managed Wrapper
The NEOS Nasdaq-100 High Income ETF is the yield play on this list. The fund holds the same Nasdaq-100 megacaps you’d expect, with NVIDIA at 9.08%, Apple at 7.11%, and Microsoft at 5.66%. What sets it apart is a 6.74% position in an NDX index call option, which is how NEOS runs the income overlay through Section 1256 index options rather than single-stock calls. That structural choice matters for taxes because Section 1256 contracts receive 60/40 long-term and short-term treatment regardless of holding period, meaningfully improving after-tax income for investors in taxable accounts.
The yield reflects the more aggressive overwrite. QQQI’s trailing 12-month distributions totaled $7.63, working out to a 13.5% trailing yield and roughly 14% on a forward run-rate basis. The catch is opportunity cost: QQQI trailed GPIQ over the past year, with a 24% total return versus 30%, and the 0.68% expense ratio eats into the yield advantage. QQQI works when the tax wrapper is doing the heavy lifting.
QYLD: The Mechanical Original
The Global X Nasdaq 100 Covered Call ETF is the elder statesman, with $8.3 billion in net assets and a fully mechanical strategy. Every month, Global X writes at-the-money calls on 100% of its Nasdaq-100 exposure, as evidenced by a -3.5% short call position on the balance sheet. That fully covered approach maximizes premium income, but it also fully caps monthly upside, which is why QYLD’s total return chronically trails its peers here in strong markets.
Include it on the list precisely because it represents the pure form of the strategy. For investors who genuinely just want the highest achievable monthly cash and don’t care about capital appreciation, QYLD is the purest expression of that preference. Everyone else is likely better served by a partial-overwrite fund.
Which Fund Fits Which Investor
If cost efficiency and total return matter alongside income, GPIQ has the strongest case. Its 0.29% expense ratio, partial-overwrite design, and rising monthly payouts make it the sharpest tool for investors who want Nasdaq exposure with a real income supplement rather than a yield-maximization sacrifice. Readers weighing income strategies more broadly can find related coverage in the 24/7 Wall St. investing research library.
The JPMorgan Nasdaq Equity Premium Income ETF is the pick for tax-advantaged accounts where the ordinary-income treatment of ELN distributions doesn’t sting and liquidity for large positions is a priority. The NEOS Nasdaq-100 High Income ETF is the answer for an investor in a high tax bracket who needs the 60/40 Section 1256 treatment to make the math work. The Global X Nasdaq 100 Covered Call ETF earns a slot only for the narrow investor who wants maximum monthly cash and accepts flat NAV as the price. The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ), with its 0.29% expense ratio, is the reason it belongs at the top of most shortlists.
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