JEPI vs QQQ

JEPI vs QQQ

Which is better, JEPI or QQQ?

Large Cap Value against Large Cap Growth.

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window.

Lower Fees: QQQHigher Returns: QQQ

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricJEPIQQQ
Expense Ratio0.35%0.18%Best
AUM$46.3B$483.5B
Dividend Yield7.99%0.44%
Holdings127107
YTD Return+4.29%+16.87%Best
1Y Return+7.20%+22.98%Best
3Y Return (annualized)+9.23%+24.98%Best
5Y Return (annualized)+7.25%+14.39%Best
Volatility (annualized)9.9%Best20.3%
Max Drawdown-13.7%Best-35.1%
$10,000 over 5 years$14,190$19,586Best
Fund FamilyJ.P. Morgan Asset ManagementInvesco (US)
CategoryEquityEquity
StyleLarge Cap ValueLarge Cap Growth
InceptionMay 20, 2020Mar 10, 1999

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: May 21, 2020 to Sep 11, 2026 (6.3 years).

JEPI vs QQQ growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 6.3 years both funds cover.

JEPI vs QQQ Performance

JPMorgan Equity Premium Income ETF (JEPI) is an ETF from J.P. Morgan Asset Management and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year JEPI returned +7.20% while QQQ returned +22.98%. Year to date, JEPI is up 4.29% versus a gain of 16.87% for QQQ.

Over three years, JEPI compounded at +9.23% per year against +24.98% for QQQ; over five years the annualized figures are +7.25% and +14.39% respectively. Across the full 6-year window we track, QQQ has the edge at +20.40% annualized vs +9.95%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

QQQ has been the more volatile fund, with annualized monthly volatility of 20.3% compared with 9.9% for JEPI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -13.7% for JEPI and -35.1% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.63. They move together some of the time, and apart the rest.

Fees and Cost Over Time

JEPI charges 0.35% per year while QQQ charges 0.18%. On a $10,000 position that is $35 vs $18 annually, a gap of $17 per year that compounds over a long holding period. On income, JEPI currently yields 7.99% against 0.44% for QQQ.

Holdings Overlap

QQQ already in JEPI64.6%

At least 64.6% of QQQ's money is in holdings JEPI also owns.

Stated as a floor: for JEPI, our book for it covers 86.4% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

The two portfolios partly overlap.

35 positions in common, counted across the 118 positions we hold weights for in JEPI and 102 in QQQ, against full books of 127 and 107.

Top Shared Holdings

StockWeight in JEPIWeight in QQQDifference
NVDANvidia Corp.1.81%8.44%6.63%
AAPLApple, Inc1.70%7.27%5.57%
MSFTMicrosoft Corp 4.100 Feb 06 371.97%5.76%3.79%
AMZNAmazon.Com Inc2.03%4.67%2.64%
GOOGLAlphabet A Usd 0.0011.79%3.36%1.57%
AVGOBroadcom Inc1.72%3.16%1.44%
MUMicron Technology, Inc.0.26%4.43%4.17%
AMDAdvanced Micro Devices Inc.0.94%3.45%2.51%
METAMeta Platforms, Inc.1.46%2.78%1.32%
WMTWalmart, Inc.0.80%2.41%1.61%

64.6% of QQQ is already inside JEPI.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

JEPIQQQ

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Frequently Asked Questions

Which is cheaper, JEPI or QQQ?

JEPI has an expense ratio of 0.35% while QQQ charges 0.18%. QQQ is the cheaper option, by $17 a year on a $10,000 investment.

Which performed better, JEPI or QQQ?

Over the past year JEPI returned +7.20% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (6 years), JEPI annualized +9.95% vs +20.40% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, JEPI or QQQ?

QQQ has been the more volatile fund at 20.3% annualized versus 9.9% for JEPI. Worst drawdown: JEPI -13.7% vs QQQ -35.1%.

Should I hold both JEPI and QQQ?

JEPI and QQQ have a monthly-return correlation of 0.63, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

What is the holdings overlap between JEPI and QQQ?

At least 64.6% of QQQ's money is in holdings JEPI also owns. Our book for JEPI is partial, so the real figure is this or higher. They hold 35 positions in common, counted across the 118 positions we hold weights for in JEPI and 102 in QQQ.

Which pays a higher dividend, JEPI or QQQ?

JEPI yields 7.99% while QQQ yields 0.44%, so JEPI currently pays the higher dividend yield.

Is QQQ better than JEPI?

QQQ has a lower expense ratio. QQQ led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.