Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Investing

Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ: Is it a buy?

admin by admin
June 4, 2025
in Investing
0
Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ: Is it a buy?
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The Goldman Sachs Nasdaq-100 Premium Income ETF (GPIQ) is trouncing the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) in terms of total return, the most important metric in ETF analysis.

Data shows that the GPIQ ETF has had a total return of 3.06% this year, while the JEPQ has dropped by 2.20%. The pureplay Invesco QQQ ETF (QQQ) has returned 3.30%, beating two funds that promise capital appreciation and higher dividends. 

What are the GPIQ and JEPQ ETFs?

JEPQ and GPIQ ETFs are popular funds in the emerging field of covered call funds. They have accumulated over $26 billion and $880 million in assets, respectively. 

The two funds aim to expose investors to the biggest companies in the technology space in the United States and pay monthly dividends. 

These funds employ a strategy known as covered call, where they invest n in these companies and then sells their call options. By selling these call options, they generate a monthly premium, which they distribute in the form of a dividend. 

JEPQ has an expense ratio of 0.35% and a dividend yield of 11.6%, while GPIQ has an annual fee of 0.29% and a yield of 10%. While these yields change occasionally, they constantly remain above 10%. 

A 10% dividend yield is a big one since it means that a $10,000 investment will generate at least $1,000 annually. This return excludes the stock appreciation. 

JEPQ and GPIQ use a similar approach, but execute it differently. GPIQ uses a dynamic covered call strategy, where it sels at-the-money ATM call options on 25% to 75% of the portfolio. It uses this approach to maximize the premium it receives.

On the other hand, JEPQ ETF uses equity-linked notes or ELNs to implement the covered call strategy. ELNs are complex derivatives that are less transparent. It then sells out-of-the-money call options on about 20% of the portfolio.

The other important difference between the two is that JEPQ is less volatile, with a Sharpe ratio of 0.37 compared to GPIQ’s 0.62. 

Read more: Is it safe to invest in the 10% yielding JEPQ ETF in 2025?

Better buy between GPIQ and JEPQ

A closer look at the two funds shows that they have a close correlation since they track the same assets and apply the same approach.

However, while GPIQ is more volatile, it has some benefits. In the first place, it has a lower expense ratio of 0.29% compared to 0.35%, giving a 0.06% spread. While this is a small deviation, it can add up over time.

Further, history shows that GPIQ, which is the underdog, beats JEPQ in terms of performance despite its lower yield. GPIQ’s total return this year was 3.06%, better than JEPQ’s minus 2.2%. 

The same happened in the last twelve months as the GPIQ rose by 15.4% compared to JEPQ’s 9.09%. These numbers mean that a similar investment in GPIQ would have a better return than JEPQ.

JEPQ vs JEPI ETF

To be clear: past performance is not always a good indicator of what will happen in the future. However, to be safe, it always makes sense to invest in an asset that has a history of doing well, which, in this case, GPIQ wins.

However, GPIQ and JEPQ should not be used to replace Nasdaq 100 Index ETFs like QQQ since they have a performance history. Instead, analysts note that they should be used to complement them. In this, one can invest 80% of their funds in QQQ and the remaining 20 % in these covered call ETFs.

Read more: Here’s why the QQQ ETF, which tracks the Nasdaq 100 Index, is rising

The post Goldman Sach’s GPIQ ETF is beating JPMorgan’s JEPQ: Is it a buy? appeared first on Invezz


Previous Post

Rolls-Royce share price nears 1,000p as a new catalyst emerges

Next Post

DocuSign stock price forecast ahead of earnings: buy or sell?

Next Post
DocuSign stock price forecast ahead of earnings: buy or sell?

DocuSign stock price forecast ahead of earnings: buy or sell?

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
Top 4 catalysts for the Dow Jones and S&P 500 this week

Top 4 catalysts for the Dow Jones and S&P 500 this week

May 25, 2025
Here’s why the German DAX index is soaring today

Here’s why the German DAX index is soaring today

May 26, 2025
Denny’s set to close dozens more locations this year, though some openings planned too

Denny’s set to close dozens more locations this year, though some openings planned too

February 16, 2025
FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

0
Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

Amazon ‘anti-union propaganda,’ employee surveillance loom over labor vote at North Carolina warehouse

0
As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

As Joann Fabrics and JCPenney announce store closings, here’s what’s driving the pattern

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

June 6, 2025
Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

June 6, 2025
Starlink reportedly secures key licence in India, moves closer to launching services

Starlink reportedly secures key licence in India, moves closer to launching services

June 6, 2025
US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

June 6, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo, BAE, and more

    June 6, 2025
    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    Asian stocks end mixed: Hang Seng snaps winning streak, Nikkei jumps 0.5%

    June 6, 2025
    Starlink reportedly secures key licence in India, moves closer to launching services

    Starlink reportedly secures key licence in India, moves closer to launching services

    June 6, 2025
    US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

    US stocks surge at open: S&P up 0.9%, Dow jumps 400 points

    June 6, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved