Forget JEPQ: The Company Behind QQQ Runs Its Own Nasdaq Income Fund
Most Nasdaq income investors default to JEPQ without realizing the company behind QQQ quietly launched its own monthly income fund built on the same index, and the differences between them matter more than the ticker names suggest.
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If you own JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ) for monthly distributions tied to Nasdaq-100 exposure, you are in good company. JEPQ pairs an actively selected Nasdaq-100-like equity sleeve with equity-linked notes to generate monthly payouts and has become one of the largest Nasdaq-linked income ETFs on the market. What many JEPQ holders have missed is that Invesco, the sponsor of Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), now runs its own monthly income version built on that same Nasdaq-100 index. It trades as Invesco QQQ Income Advantage ETF (NASDAQ:QQA), and it deserves a look before you assume JEPQ is the only way to draw income from the Nasdaq.
Why JEPQ Holders Bought In
JEPQ’s appeal is straightforward. It pays monthly, its equity sleeve looks like the Nasdaq-100 (top disclosed positions include NVIDIA at 6.59%, Apple at 5.74%, Micron at 5.50%, and Alphabet at 4.98% of net assets), and the ELN sleeve manufactures option premium that flows out as distributions. Over the last twelve months, JEPQ has distributed $6.76379 per share, with a forward annualized figure of $8.1906 based on the most recent payment. Shares are up 11.24% year to date and 21.21% over the past year through September 3, 2026.
Where the Incumbent’s Structure Complicates the Story
JEPQ’s monthly payout is variable. The most recent distribution came in at $0.68255, down from $0.70497 the prior month, and history shows a wide range: $0.46572 in February 2026, $0.44195 in September 2025, and $0.68125 back in November 2022. That swing reflects the ELN mechanics: JEPQ relies on structured notes from Citigroup Global Markets, Royal Bank of Canada, Toronto-Dominion Bank, BNP Paribas Issuance BV, and Goldman Sachs Bank USA to source premium. Those notes work, but they introduce counterparty exposure and payouts that jump month to month, which matters if a retiree is planning for cash flows.
Meet the Invesco Alternative
QQA is Invesco’s answer for readers who want Nasdaq-100 exposure and a monthly check from the same firm that runs QQQ. It writes options against Nasdaq-100 exposure and distributes the premium monthly. The distribution record, which started in August 2024, is the most useful lens on the fund.
The trailing twelve-month total sits at $5.56389 per share, with a forward annualized figure of $5.79276 based on the latest payment. The most recent monthly distribution was $0.48273 on August 24, 2026, up from $0.4756 the prior month. Payments over the last six months have ranged from $0.4338 in March 2026 to $0.50032 in June 2026, a tighter band than JEPQ has posted over the same window. On price, QQA is up 13.59% year to date and 22.07% over the past year, ahead of JEPQ on both windows and within reach of the 16.83% year-to-date gain in the underlying QQQ.
What Actually Separates the Two
QQA generates income through listed index options on the Nasdaq-100. JEPQ generates income through an active equity sleeve plus bank-issued ELNs. For a retiree, QQA’s payout is more directly tied to index-level volatility premiums, while JEPQ’s payout blends dividend income, ELN coupons, and stock selection. A steadier six-month distribution band and a monthly cadence that lines up with QQQ’s benchmark is the practical edge. The tradeoff is that QQA’s forward annualized distribution of $5.79276 runs below JEPQ’s $8.1906, so the higher headline yield stays with the incumbent.
Track Record and Real Caveats
QQA is considerably younger than JEPQ. Its distribution record spans 25 payments, while JEPQ has 52 going back to 2022, covering the 2022 drawdown and the 2023 recovery. QQA has not been tested through a Nasdaq bear market. Distributions vary month to month, and a rising payment history offers no guarantee of future payouts. Both funds cap upside relative to QQQ, whose 25.89% one-year gain outran both income funds.
How to Think About the Swap
If JEPQ sits in a tax-advantaged account, evaluating a partial rotation into QQA is low friction. In a taxable account, selling JEPQ shares up 21.21% over the past year will trigger capital gains. A middle path is to route new contributions or reinvested distributions to QQA and let position sizing shift over time, which lets you sample the sponsor’s approach without abandoning the payout you already know.
What This Means for Your Portfolio
QQA trails JEPQ on headline distribution rate and has a shorter history, both real limitations. It offers a monthly income vehicle from the firm that built the Nasdaq-100 ETF category, with a cleaner options-on-index mechanism and a tighter payout band. For a retiree who values distribution stability and sponsor alignment, that is worth evaluating against your own goals, tax situation, and comfort with a younger fund (turning a lump sum into something that behaves like a paycheck is the whole exercise in our free Paycheck Portfolio Method guide).
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, portfolio strategy, and opportunities across public markets. His investment approach emphasizes fundamental analysis, valuation, and disciplined risk-taking.
Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide readers with clear, research-driven insights into investment fundamentals, portfolio construction, and risk management. His goal is to help investors make more informed decisions while maintaining a disciplined long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science.
