Your Year-End RMD Has to Come From Somewhere. Fidelity’s FDLO Returned 60.19% Over Five Years Against JEPI’s 44.66%.
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After your first required minimum distribution, you generally have until December 31 each year to take your next one. Monthly payouts from investments in your traditional IRA can help cover the withdrawal. For many retirees, that holding is the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), which people buy for its monthly cash. JEPI does what it was built to do. Over five years, though, the Fidelity Low Volatility Factor ETF (NYSEARCA:FDLO) returned 60.19% against JEPI’s 44.66%, a gap of 15.53 points. FDLO turned a $100,000 stake into $160,190, while the income fund reached $144,660. Both five-year windows start on November 5, 2021, and both calculations reflect reinvested distributions.
What IRS Publication 590-B Requires by December 31
The IRS sets out the rules in the current edition of Publication 590-B. Traditional IRA owners must begin receiving required minimum distributions by April 1 of the year following the year they reach age 73. For later years, the publication states that the RMD “must be made by December 31 of that later year.” That deadline turns late fall into selling season for many retirees, and the fund inside the account determines how much remains after each withdrawal (the December 31 rule is one of nine IRS rules that quietly drain retirement accounts, and we detailed the rest in a free guide here).
FDLO Has Led JEPI in Every Window We Measured
The five-year result is consistent with the shorter windows. Over one year, starting November 6, 2025, FDLO returned 17.42% against JEPI’s 11.21%.
| Window | FDLO | JEPI | FDLO Lead |
|---|---|---|---|
| Five years | 60.19% | 44.66% | 15.53 points |
| One year | 17.42% | 11.21% | 6.21 points |
| Year to date | 14.68% | 7.78% | 6.9 points |
| One month | 5.14% | 2.94% | 2.2 points |
In our data, JEPI did not finish ahead in any window. In delayed afternoon quotes on November 9, FDLO traded at $75.68 and JEPI at $57.76. Total return is the figure that matters in an RMD account. You take the withdrawal from whichever fund you own, and the fund that grew faster leaves a larger balance after each December sale.
Why JEPI Still Earns Its Place for Some Retirees
JEPI’s fact sheet dated September 30, 2026 says the fund is “designed to provide current income while maintaining prospects for capital appreciation,” and it pays a monthly income stream drawn from option premiums and stock dividends. That cash lands in the IRA 12 times a year and can build up there. FDLO pays quarterly.
The returns above assume every distribution was reinvested, and many retirees use JEPI differently. If you want the account itself to produce the RMD cash, so you never have to pick shares to sell in a weak December, JEPI delivers on that promise. For a retiree who wants the withdrawal to happen without decisions, that reason can outweigh a return gap.
How JEPI and FDLO Are Built
Both funds aim for a calmer ride than the broad market, using different methods. JEPI is actively managed. Its fact sheet says it invests in U.S. large-cap stocks chosen through a proprietary research process, sells options to generate income, and “seeks to deliver less volatility than the U.S. large-cap market.”
FDLO is an index fund that tracks the Fidelity U.S. Low Volatility Factor Index, a proprietary benchmark of large- and mid-cap U.S. stocks that are less exposed to market moves. It has no stated options-income strategy. Both are stock funds, and both can lose value when markets fall.
Tax Rules That Apply Before Switching Funds
Inside a traditional IRA, a retiree who switches would sell JEPI and buy FDLO in the same account, then sell FDLO shares each December to meet the RMD. Holding JEPI in a taxable brokerage account changes the picture. Selling there can realize capital gains, so cost basis becomes a key factor. Some retirees take a partial approach, keeping enough JEPI to cover the RMD with its monthly cash and holding the rest in FDLO.
Which Retiree Each Fund Fits
For investors who reinvest distributions or are comfortable selling shares each December, FDLO has been the stronger fund for supporting RMDs and led JEPI in every window measured. If you want the IRA to produce its own monthly cash, JEPI still fits that job. IRS Publication 17 for 2025 states that tax on your traditional IRA is generally deferred until you take a distribution, so swapping funds inside the IRA does not, by itself, trigger capital gains tax.
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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.
