Forget JEPI: BlackRock’s Income Fund Beat It by 11.89 Points Over the Past Year
JEPI built its reputation on reliable monthly cash, but a newer BlackRock rival has been quietly piling up gains that leave the covered-call giant looking sluggish. The catch is whether that gap holds when markets get ugly.
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The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) earned its following by paying monthly cash from a portfolio of large-cap U.S. stocks paired with an options overlay. It is one of the best-known covered-call names, and JEPI continues to pay every month. Over the past year, JEPI is up 7.5%. BlackRock’s iShares U.S. Large Cap Premium Income Active ETF (CBOE:BALI) is up 19.39% over the same stretch, a lead of 11.89 points.
BALI also leads year-to-date, up 17.01% against 4.87% for JEPI, a gap of 12.14 points. Over the past month, BALI gained 1.21% while JEPI slipped 0.59%, so the challenger comes out ahead in all three windows. These figures are based on total return, so they include both price and distributions.
JEPI Still Pays More Cash on the Same Stake
Put an identical $100,000 into each fund. JEPI’s October distribution paid $603.71 on that position. BALI’s paid $506.59.
At $56.54 a share, that money buys 1,768.66 shares of JEPI. At $34.89, it buys 2,866.15 shares of BALI. JEPI paid $0.34134 per share in October, and BALI paid $0.176748.
Comparing those per-share figures directly will mislead you, because the two funds trade at very different share prices. The only fair comparison is dollars paid on an identical position, and JEPI wins that one. For investors focused on current cash, JEPI holds the edge. BALI’s case rests entirely on price performance.
Both Funds Cut Their October Payments
JEPI’s distribution fell to $0.34134 per share in October from $0.37142 in September. BALI’s fell to $0.176748 from $0.214328. BALI’s October payment went ex-dividend on October 1, 2026, and was paid on October 6, 2026.
On a $100,000 position, JEPI’s payment dropped to $603.71 from $656.92. BALI’s dropped to $506.59 from $614.30. BALI’s payment fell by a larger share.
The monthly payment of a covered-call fund follows the option premium it takes in. When volatility falls, premiums shrink, and the checks get smaller. A lighter October payment usually reflects market conditions, and it says little about the health of either fund. Both payout records show amounts that move from month to month.
BALI’s Short Track Record Is the Biggest Caveat
Price history for BALI starts on September 28, 2023. That makes a five-year or ten-year comparison with JEPI impossible. JEPI has 76 recorded distributions, compared with 36 for BALI, and it has been through more market conditions.
A one-year lead from a fund with this short a record is thin evidence. A single year can reflect one good stretch for whatever portfolio a manager happens to hold, and BALI has yet to show how it holds up through a long downturn or an extended stretch of low volatility. Treat the 11.89-point gap as promising but unproven.
What Each Fund Actually Does
Both funds pay monthly. A covered-call income fund holds stocks and sells call options on them, then uses the premiums it takes in to fund distributions. The cost is upside: when stocks rally hard, the fund gives up part of that gain. Both funds still carry full equity risk.
JEPI and BALI sell options against different underlying portfolios. That explains how two funds chasing the same goal ended up on such different price tracks over the past year.
How to Move Without a Tax Surprise
In an IRA or 401(k), switching from JEPI to BALI is a simple trade with no immediate tax bill. In a taxable account, selling JEPI can set off capital gains on any appreciation, and distributions from either fund are taxable in the year you receive them.
Investors interested in BALI can phase in gradually. You can send new contributions or reinvested JEPI distributions into BALI and keep your existing JEPI shares paying cash. Another option is to sell only the lots that carry the smallest gains. Both approaches give you exposure to BALI while its record grows, and they keep your tax cost under control.
Which Fund Fits Your Income Goals
For investors who spend their monthly distributions, JEPI fits better. It pays more dollars on the same position today. For investors who reinvest income and want more price growth from a covered-call fund, BALI is worth exploring further. Keep an eye on whether BALI keeps its lead through a weaker, choppier market.
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
