JEPQ Holders Trailed the Nasdaq-100 Over the Past Year While Chasing a Monthly Check
JEPQ deposits a monthly check into your account like clockwork, but the covered-call strategy powering those payments quietly changes the math on what you actually keep versus what the Nasdaq-100 would have handed you.
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The September deposit hit brokerage accounts on September 3, 2026: $0.68255 per share from the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ:JEPQ). The monthly cash is the reason retirees and income seekers own this fund. It arrives on schedule, month after month, in amounts that read like a paycheck. That said, the cost of that check over the past year lives outside the statement.
Monthly Check, Yearly Shortfall
JEPQ has grown to $40.66 billion in net assets, reflecting strong investor demand for its monthly distributions. From September 3, 2025, through September 3, 2026, the fund returned 21.21%. Over the same period, the Nasdaq-100, tracked by Invesco QQQ (NASDAQ:QQQ), returned 25.89%. On an illustrative $10,000 investment, that 4.68-percentage-point gap shows the other side of JEPQ’s income strategy: the monthly distributions can come with an opportunity cost when growth stocks are rising.
How the Two Numbers Are Measured
This disclosure belongs at the top, above any footnote. JEPQ’s 21.21% is an adjusted total return, which means every monthly distribution is added back in. QQQ’s 25.89% is unadjusted, meaning it is price-only and excludes QQQ’s own dividend. QQQ’s true total return over the window is therefore slightly higher than 25.89%, which widens the real performance gap beyond the point spread shown. Over a one-year period, QQQ has provided a total return of 26.50%.
Why Covered Calls Cap Your Upside
JEPQ runs an actively managed covered-call strategy on Nasdaq-100 names. The fund holds a basket of large-cap technology and consumer stocks, led by NVIDIA at 6.59%, Apple at 5.74%, Micron at 5.50%, Alphabet at 4.98%, Microsoft at 3.84%, and Amazon at 3.62%. On top of that basket, the fund sells call options through equity-linked notes issued by banks including BNP Paribas, Citigroup, Royal Bank of Canada, and Toronto-Dominion. When the index rallies past the strike prices on those calls, gains above the strike are forfeited. The bank keeps that upside. The fund keeps the option premium and passes it through as the monthly distribution. During strong rallies in large-cap growth stocks, that trade-off can leave JEPQ trailing the Nasdaq-100 even after accounting for its distributions.
What the Distribution Actually Pays
JEPQ paid $6.76379 per share in distributions over the trailing 12 months. Annualizing its latest monthly payment produces a forward distribution estimate of $8.1906 per share. The trailing yield reflects distributions actually paid over the previous 12 months, while the forward yield extrapolates the latest payment over the next year. Neither means investors receive a fixed monthly amount. JEPQ paid $0.46572 per share in February 2026, $0.70497 in August, and $0.68255 in September. The distribution varies from month to month by design.
Who Should Own JEPQ
The fund does offer something beyond the monthly check. Over the trailing year, JEPQ’s daily standard deviation was 0.92% versus QQQ’s 1.23%, while its maximum drawdown was -5.88% compared with -6.66%. The options overlay reduces some volatility in exchange for less participation in strong Nasdaq-100 rallies. JEPQ fits investors who prioritize current cash flow (for readers in that camp, we laid out the full mix, payment calendar, and withdrawal order in a free guide to turning savings into a monthly paycheck).
JEPQ is not simply Nasdaq-100 exposure plus income. Investors seeking direct index exposure can consider Invesco QQQ or the Invesco Nasdaq 100 ETF (NASDAQ:QQQM), while those comparing covered-call strategies can look at the Global X NASDAQ 100 Covered Call ETF (NASDAQ:QYLD).
A Test You Can Run Yourself
Judge JEPQ by its total return, and set the distribution rate aside for the exercise. Pull the fund’s total return and the Nasdaq-100’s total return over your own holding period and put the two side by side. Do that once a year against the benchmark named in the fund’s own materials. That single comparison answers the only question that matters: whether the monthly check left you ahead of the index you could have owned instead.
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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.
