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JEPQ’s yield came at the cost of 10-12 percentage points in annual returns.JEPQ’s monthly distributions fluctuate 50% based on volatility. The fund holds 43.7% in technology stocks with 168% portfolio turnover.If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more hereThe JPMorgan Nasdaq Equity Premium Income ETF (quite the mouthful!) (NASDAQ:JEPQ) has attracted nearly $32 billion in assets with a simple and appealing feature: a remarkably high 11.52% dividend yield. The fund holds Nasdaq-100 stocks and sells covered call options against those positions, generating consistent monthly premiums that fund distributions while capping upside when stocks rally. The core question: does sacrificing capital appreciation for double-digit income make financial sense?JEPQ holds a portfolio mirroring the Nasdaq-100, concentrated in mega-cap technology stocks. The fund sells call options on these positions, collecting premiums that produce monthly distributions. When markets are volatile, option premiums rise, potentially increasing payouts. When stocks surge, those call options limit gains. The fund's 0.35% expense ratio is competitive, and it has paid monthly distributions without interruption since its May 2022 inception. Payment amounts fluctuate significantly—ranging from $0.34 to $0.68 per share—because they depend on market volatility rather than underlying dividend fundamentals.JEPQ's top holdings reveal the opportunity cost. Nvidia (NASDAQ:NVDA), the fund's largest position at 8.02%, gained 33.27% year-to-date and 1,316.40% over five years. Apple (NASDAQ:AAPL) at 7.58% returned 13.53% this year and 126.16% over five years. Microsoft (NASDAQ:MSFT) at 6.48% delivered strong Azure growth, while Alphabet (NASDAQ:GOOG) at 5.88% posted its first $100 billion revenue quarter. Broadcom (NASDAQ:AVGO) rounds out the top five at 4.95%.The benchmark Invesco QQQ Trust (NASDAQ:QQQ), which holds similar stocks without covered calls, returned 22.27% year-to-date and 106.68% over five years. During November's tech selloff, QQQ dropped 4.6% in a single day but recovered 6.7% in the subsequent rally. JEPQ holders received their dividend during the decline but captured minimal upside during the rebound due to capped call options. Over 4.5 months from July through early December, QQQ gained 10.8%—exceeding JEPQ's annual dividend yield through capital appreciation alone.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,866.73 -19.95 (-0.29%)Dow 3048,525.99 +468.24 (+0.97%)Nasdaq23,434.98 -219.18 (-0.93%)Russell 20002,568.91 +9.31 (+0.36%)VIX16.00 +0.23 (+1.46%)Gold4,288.00 +63.30 (+1.50%)Trending tickersORCL Oracle Corporation 192.20 -30.81 (-13.82%)PL Planet Labs PBC 16.98 +4.04 (+31.22%)GM General Motors Company 81.06 +0.26 (+0.32%)BTTC Black Titan Corporation 5.94 +2.58 (+76.79%)CIEN Ciena Corporation 238.90 +17.04 (+7.68%)PortfolioSign in to access your portfolioSign inTop gainersPL Planet Labs PBC 17.09 +4.15 (+32.07%)RYTM Rhythm Pharmaceuticals, Inc. 120.04 +15.27 (+14.57%)PPTA Perpetua Resources Corp. 28.40 +2.70 (+10.51%)ENVA Enova International, Inc. 155.35 +13.95 (+9.87%)IMVT Immunovant, Inc. 25.80 +2.24 (+9.51%)Top losersWVE Wave Life Sciences Ltd. 17.10 -3.13 (-15.47%)ORCL Oracle Corporation 192.70 -30.31 (-13.59%)HOOD Robinhood Markets, Inc. 124.05 -11.61 (-8.56%)TXG 10x Genomics, Inc. 16.14 -1.39 (-7.96%)VRT Vertiv Holdings Co 169.99 -11.83 (-6.51%)Most activeNVDA NVIDIA Corporation 177.55 -6.24 (-3.39%)ORCL Oracle Corporation 192.70 -30.31 (-13.59%)K Kellanova 83.44 -0.01 (-0.01%)PL Planet Labs PBC 17.09 +4.15 (+32.07%)PLUG Plug Power Inc. 2.1950 -0.0650 (-2.88%)Top economic eventsEarnings eventsMy earnings eventsEarnings events