JEPI vs. VYM: The High-Yield ETF Delivered the Income but Lost the Race
One ETF promised high monthly income and delivered. The other promised competitive returns and delivered. Choosing between them depends on a trade-off that most retirees get wrong until they see the numbers side by side.
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In October 2025, 24/7 Wall St. published The ETF That Outperforms VYM and Delivers Consistent Monthly Payouts. The piece picked the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) over the Vanguard High Dividend Yield ETF (NYSEARCA:VYM). A year later, the results split: JEPI paid the income it promised, and VYM won on total return. Over that span, JEPI returned 11.0% while VYM returned 20.1%. Both figures are dividend-adjusted, so they include every distribution paid.
What the Original Call Rested On
The case for JEPI came down to yield. At publication, 24/7 Wall St. put JEPI’s yield at 7.2%, compared with 2.5% for VYM. A retiree drawing cash would find that gap hard to ignore, and monthly checks are easier to budget around than quarterly ones.
Income Scorecard: JEPI Kept Its Promise
Over the period, JEPI made 12 monthly payments that totaled about $4.56 per share. VYM’s quarterly payments came to about $3.68.
At current prices, JEPI’s trailing yield is 8.2%, versus 2.4% for VYM.
The word “consistent” needs a qualifier. JEPI paid every month, but the amount varied. The largest check came in May at $0.45. The lowest, $0.34, was also the most recent one, with an October 1 ex-dividend date. If you annualize that payment, JEPI’s run rate falls to about $4.10 per share. Anyone budgeting off last year’s total should plan for less.
Total Return Scorecard: VYM Pulled Away
The gap held up across time frames. So far this year, VYM has returned 14.4% against 6.4% for JEPI. Over the longer run, VYM is up 71.8% and JEPI is up 43.1%. In other words, last year fit a longer pattern.
Why the Higher Yield Lost
JEPI holds a defensive basket of large U.S. stocks. On top of that, it uses equity-linked notes that sell call options on the S&P 500. Selling a call brings in cash today, and in exchange the fund gives up profits above a set price. When the market keeps rising, that exchange gets expensive.
VYM simply owns its dividend payers outright and keeps the full profits. As of July 31, its largest position was Broadcom (NASDAQ:AVGO | AVGO Price Prediction) at about 7% of assets. That chipmaker’s rally went straight into VYM’s returns. Yield measures what a fund pays out. Total return measures how much the account actually grows.
Taxes also favor VYM. JEPI’s distributions are mostly taxed as ordinary income, while VYM’s are mostly qualified dividends, according to fund disclosures. JEPI charges a 0.35% expense ratio; VYM’s is 0.04%.
Which Fund Fits Which Retiree
JEPI fits retirees who need monthly cash flow now, keep it in an IRA or other tax-advantaged account, and accept that their upside is capped in exchange for that check. It works best in flat, choppy markets, where option premiums run high and big rallies are rare.
VYM has been the stronger total-return performer for income investors near retirement. It suits anyone with a horizon of a decade or more who wants a growing balance alongside dividends. Over the past year, it paid less income and still produced the larger total return. The original call was right about the income and wrong about the result. The decision would tilt back toward JEPI in a long sideways market where calls continue to expire worthless and stocks stall.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
