JEPQ ETF pays monthly income but lags Nasdaq-100 returns over the past year due to its covered-call strategy.

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) provides monthly income distributions attractive to retirees and income-focused investors. However, over the past year, JEPQ returned 21.21%, trailing the Nasdaq-100's 26.50% total return, due to its covered-call strategy that caps upside gains in exchange for steady income. This strategy reduces volatility and drawdowns but results in opportunity costs during strong market rallies. JEPQ suits investors prioritizing consistent cash flow over maximum growth, while those seeking full Nasdaq-100 exposure might prefer other ETFs like QQQ or QQQM.