JEPQ - JEPQ Vs. GPIQ: A Fight Of NASDAQ 100 Income ETFs

2024-07-11 08:00:00 ET

Summary

• Investors are still seeking equity exposure for income even as interest rates rise, turn to ETFs like JEPQ and GPIQ.
• JEPQ uses ELNs for income, while GPIQ writes call options, providing higher yield and a more understood strategy.
• GPIQ edges out JEPQ in income generation, but both ETFs lag behind benchmark QQQ in performance.
• This article reviews both ETFs and the income strategy each employs. My concern about over-valued Tech stocks results in a Hold rating for both ETFs.
• While this might change as GPIQ provides more history, I am declaring the winner of this fight goes to GPIQ but not by a knockout.

Introduction

Despite CDs and other fixed income investments, after a decade of low rates, finally providing investors with decent income streams, higher consumer prices and interest rates on consumer debt or new home mortgages has some investors hoping their equity exposure can come to the rescue and provide some cash flow. When the FOMC starts cutting interest rates, investor income will drop faster than what their credit card and other consumer debt costs will....

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