Complete JEPQ Investment Guide 2025
Achieve Growth and Monthly Income with Nasdaq-Based High-Yield ETF 🚀
JEPQ ETF is a Nasdaq-based high-yield ETF that provides monthly dividends while utilizing a covered call strategy.
Use our dividend calculator to project your future dividend income and develop an effective investment strategy.
- - Current NAV: $51.11 (as of April 28, 2025)
- - 30-day SEC yield: 12.42% (as of March 31, 2025)
- - 12-month trailing yield: 10.42%
- - Year-to-date performance: -6.78%
- - Total assets under management: $22.7 billion
💡 Note: JEPQ follows a consistent monthly dividend schedule. According to JPMorgan's official dividend calendar, the ex-dividend date in 2025 is the first business day of each month, with payment occurring 2-4 days later.
JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) is a popular ETF among dividend investors. Let's explore JEPQ, which pursues high dividend yields through Nasdaq-focused growth stocks and covered call strategies.
1. What is JEPQ ETF?
JEPQ is an ETF launched by JPMorgan in May 2022 that invests primarily in Nasdaq 100 index technology stocks while generating additional income through a covered call strategy.
it's a hybrid product that simultaneously pursues high-growth technology stocks and stable monthly dividends.
Due to its relatively recent launch, data on dividend rates and dividend growth rates has limited reliability.
Key Features
2. Understanding JEPQ's Investment Strategy
2-1. Portfolio Composition
JEPQ constructs its portfolio around Nasdaq 100 index technology stocks. While JEPI focuses on low-volatility stocks from the S&P 500, JEPQ invests in high-growth potential technology companies.
Top 10 Holdings (41.84% of portfolio) - As of April 28, 2025
| Ticker | Company | Weight (%) |
|---|---|---|
| AAPL | Apple | 7.7% |
| MSFT | Microsoft | 6.5% |
| NVDA | Nvidia | 6.3% |
| AMZN | Amazon | 4.9% |
| GOOG | Alphabet (Google) | 3.9% |
| META | Meta | 3.2% |
| AVGO | Broadcom | 2.9% |
| NFLX | Netflix | 2.5% |
| TSLA | Tesla | 2.1% |
| COST | Costco | 1.8% |
Sector Allocation (As of March 31, 2025)
39.5%
12.8%
11.9%
4.6%
Diversified portfolio consisting of 108 stocks
2-2. Covered Call Strategy
Like JEPI, JEPQ employs a covered call strategy to generate additional income. This strategy involves selling call options on held securities to earn premium income.
Due to the higher volatility of Nasdaq stocks, JEPQ can potentially earn higher option premiums than JEPI, though this may also mean greater upside limitations in bull markets.
The following chart briefly illustrates how covered call ETFs perform in different market conditions:
Bear Market
Downside protection from option premiums
Moderate Bull Market
High returns from premiums + price appreciation
Strong Bull Market
Limited returns due to upside caps
3. JEPQ Dividend Characteristics
JEPQ's dividends are composed of dividends from portfolio stocks and premiums earned through option sales. While it offers higher dividend yields than JEPI, dividend amounts may fluctuate more depending on market conditions.
JEPQ's High Dividend Yield
Dividend Yield Comparison by Asset Class
Source: JPMorgan Asset Management (As of April 28, 2025)
2025 JEPQ Dividend Schedule
According to JPMorgan Asset Management's official dividend calendar, JEPQ follows this monthly dividend schedule:
Q1 (Jan-Mar)
Q2 (Apr-Jun)
Q3 (Jul-Sep)
Q4 (Oct-Dec)
2025 Monthly JEPQ Dividend Calendar
JAN
Ex-div: 1/2
Pay: 1/6
FEB
Ex-div: 2/3
Pay: 2/5
MAR
Ex-div: 3/3
Pay: 3/5
APR
Ex-div: 4/1
Pay: 4/3
MAY
Ex-div: 5/1
Pay: 5/5
JUN
Ex-div: 6/2
Pay: 6/4
JUL
Ex-div: 7/1
Pay: 7/3
AUG
Ex-div: 8/1
Pay: 8/5
SEP
Ex-div: 9/2
Pay: 9/4
OCT
Ex-div: 10/1
Pay: 10/3
NOV
Ex-div: 11/3
Pay: 11/5
DEC
Ex-div: 12/1
Pay: 12/3
Important Notes
- • Actual announced schedules may vary slightly.
- • Refer to JPMorgan Asset Management's official announcements for precise scheduling.
- • To receive dividends, you must hold shares before the ex-dividend date.
- • Dividend amounts may fluctuate monthly based on market conditions and fund performance.
4. Investment Considerations for JEPQ
Advantages
- ✓Provides stable monthly cash flow
- ✓Professional management by JPMorgan
- ✓High dividend yield (10-14%)
- ✓Nasdaq-based growth stock portfolio
Disadvantages
- •Limited gains in strong bull markets
- •Dividend amount volatility
- •Higher price volatility than JEPI
- •Relatively short track record (launched 2022)
5. Professional Management of JEPQ
JEPQ is managed by JPMorgan's expert team, including fund manager Hamilton Reiner. With 38 years of investment experience, Hamilton Reiner is an equity derivatives specialist who leads the implementation of the covered call strategy.
Portfolio Management Experts
- •Andrew Stern (17 years experience)
- •Eric Moreau (12 years experience)
- •Hamilton Reiner (38 years experience)
- •Judy Jansen (10 years experience)
- •Matt Bensen (10 years experience)
Investment Strategy
JEPQ's management team employs two core strategies:
- Data science-driven equity portfolio construction: Stock selection through precise analysis
- Disciplined options overlay: Generating monthly dividend income by selling Nasdaq 100 index call options
JEPQ Performance (Since Launch)
| Year | Total Return (%) | Dividend Yield (%) | Key Events |
|---|---|---|---|
| 2022 | -12.4 | 12.8 | Tech sector weakness |
| 2023 | 36.23 | 11.5 | Tech sector rebound |
| 2024 | 24.89 | 10.42 | Stable growth |
| 2025 (YTD) | -6.58 | 12.42 | Market correction response |
Source: JPMorgan Asset Management (As of March 31, 2025)
6. JEPI vs JEPQ: Which ETF is Right for You?
Considerations When Choosing ETFs
| Feature | JEPI | JEPQ |
|---|---|---|
| Portfolio Base | S&P 500 | Nasdaq 100 |
| Dividend Yield | 7~11% | 10~14% |
| Expense Ratio | 0.35% | 0.35% |
| Volatility | Low | High |
| Growth Potential | Moderate | High |
| Launch Date | May 2020 | May 2022 |
Conclusion
JEPQ is well-suited for investors seeking both high dividends and growth potential through a Nasdaq-focused portfolio.
It offers higher dividend yields than JEPI but comes with greater volatility. Depending on your risk tolerance and investment goals, you can balance between these ETFs or focus on one.
Holding both ETFs can also be an effective strategy. For example, a portfolio with 40% JEPQ and 60% JEPI might capture more upside during market rallies while reducing downside risk.
