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Two Nasdaq covered call ETFs offer high monthly yields but differ in tax treatment and suitability.

Market News
12 Oct 2026
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Two Nasdaq covered call ETFs offer high monthly yields but differ in tax treatment and suitability.

Two Nasdaq covered call ETFs, NEOS Nasdaq-100 High Income ETF (QQQI) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), offer high monthly yields of 13.6% and 11.3% respectively. Both pay monthly income by selling call options on Nasdaq-100 stocks, but QQQI provides a tax-efficient structure with most distributions classified as return of capital, deferring taxes until sale. JEPQ, larger and actively managed, suits IRA holders and those less concerned with tax deferral. Investors should consider account type and holding period when choosing between the higher yield but tax-deferred QQQI and the actively managed JEPQ.

JEPQ trades at USD 60.98 with a slight 0.18% decline as of Oct 13, 2026 05:21 WIB on Pluang, showing steady investor interest with 94% buy orders. The ETF holds a substantial market cap of $44.69 billion and a typical hold time of 67 days on the platform. This trading activity highlights ongoing demand for Nasdaq covered call ETFs amid discussions of their high monthly yields.

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