QQQI vs. JEPQ

Which Covered Call ETF is Right for You?

When it comes to investing in the Nasdaq-100 while generating income, two popular ETFs stand out: QQQI (Global X NASDAQ 100 Covered Call & Growth ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF). Both funds utilize covered call strategies, but they cater to different investor needs.

Let’s break down the key differences between QQQI and JEPQ to help you decide which one fits your portfolio best.

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1. Strategy & Objective

QQQI: Growth-Focused Covered Call ETF

QQQI follows a covered call & growth strategy. It invests in the Nasdaq-100 Index while writing covered calls on only a portion of its holdings. This approach allows for greater upside potential than fully covered call strategies while still generating some income from options premiums.

JEPQ: Income-Focused Premium ETF

JEPQ, on the other hand, is actively managed and focuses on equity premium income. Instead of writing covered calls directly, it sells equity-linked notes (ELNs) to generate premium income. This results in higher income payouts, but with limited upside potential compared to QQQI.