JEPQ vs VYM
JPMorgan Nasdaq Equity Premium Income ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | JEPQ | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $38.9B | $81.6B | |
| Dividend Yield | 10.82% | 2.24% | |
| Holdings | 111 | 616 | |
| YTD Return | +9.56% | +15.42% | |
| 1Y Return | +19.48% | +22.36% | |
| 3Y Return (annualized) | +19.89% | +19.06% | |
| 5Y Return (annualized) | - | +12.20% | |
| Volatility (annualized) | 13.8% | 14.6% | |
| Max Drawdown | -20.1% | -58.8% | |
| Fund Family | J.P. Morgan Asset Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | May 3, 2022 | Nov 10, 2006 |
JEPQ vs VYM Performance
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is a ETF from J.P. Morgan Asset Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year JEPQ returned +19.48% while VYM returned +22.36%. Year to date, JEPQ is up 9.56% versus a gain of 15.42% for VYM.
Over three years, JEPQ compounded at +19.89% per year against +19.06% for VYM. Across the full 4-year window we track, JEPQ has the edge at +15.63% annualized vs +7.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.8% for JEPQ. 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 -20.1% for JEPQ and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.65. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
JEPQ charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, JEPQ currently yields 10.82% against 2.24% for VYM.
Holdings Overlap
JEPQ and VYM share 29 holdings out of 669 unique holdings combined, representing a 12.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, JEPQ or VYM?
JEPQ has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, JEPQ or VYM?
Over the past year JEPQ returned +19.48% vs +22.36% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), JEPQ annualized +15.63% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, JEPQ or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.8% for JEPQ. Worst drawdown: JEPQ -20.1% vs VYM -58.8%.
Should I hold both JEPQ and VYM?
JEPQ and VYM have a monthly-return correlation of 0.65, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between JEPQ and VYM?
JEPQ and VYM share 29 common holdings with a 12.6% weight overlap. Combined, they hold 669 unique securities.
Which pays a higher dividend, JEPQ or VYM?
JEPQ yields 10.82% while VYM yields 2.24%, so JEPQ currently pays the higher dividend yield.
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