2 High-Yield JPMorgan ETFs to Watch in 2026 — JEPQ and JEPI Pay Over 8%

With the S&P 500 still hovering near record territory, many investors have started shifting their focus toward investments that can provide steady income as questions surrounding interest rates, Treasury yields, and market valuations continue lingering in the background. High-yield dividend ETFs are looking particularly appealing for investors seeking consistent cash flow alongside exposure to large-cap U.S. equities.

Among the best-known names in this category are the dividend-focused ETFs offered by JPMorgan Asset Management. The firm’s covered-call funds have gathered substantial assets thanks to their combination of monthly payouts, diversified stock exposure, and actively managed portfolios. Unlike traditional dividend ETFs that rely primarily on company distributions, JPMorgan’s approach also incorporates options income through equity-linked notes, allowing these funds to deliver elevated yields.

Based on the TipRanks’ ETF comparison tool, two JPMorgan ETFs stand out for their income potential. The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the JPMorgan Equity Premium Income ETF (JEPI) both currently offer yields above 8%. Let’s take a closer look.

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)

The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has become one of the market’s most popular choices for investors seeking substantial monthly income while still maintaining exposure to some of the largest tech companies in the world. Rather than simply tracking the Nasdaq-100, the fund combines holdings in companies such as Nvidia (NVDA), Microsoft (MSFT), Amazon (AMZN), and Apple (AAPL) with a covered-call strategy designed to generate additional cash flow from options premiums.

That approach has helped JEPQ distinguish itself from traditional dividend ETFs, many of which rely primarily on payouts from underlying companies. By incorporating options income into the strategy, JEPQ has been able to maintain a trailing 12-month dividend yield of 10.26%, with payouts delivered monthly. The fund currently manages approximately $38 billion in assets while charging an expense ratio of 0.35%.

There is, however, a tradeoff involved with the strategy. During periods when large-cap tech stocks post substantial gains, JEPQ may lag the Nasdaq-100 because the covered calls can limit part of the upside participation. Still, the fund’s combination of sizable monthly income and somewhat lower volatility has made it an appealing alternative to owning the Nasdaq outright.

Among the bullish voices is investor Kenio Fontes, who believes the setup could work particularly well in a market that delivers more measured gains rather than an extended melt-up. According to Fontes, if the Nasdaq moves gradually or trades sideways, JEPQ could still capture a meaningful portion of the upside while continuing to collect options premiums that support income generation. The investor also argues that during volatile periods or market pullbacks, the steady stream of distributions can help cushion declines and contribute to a more consistent total-return profile compared to owning the Nasdaq directly. (To watch Fontes’ track record, click here)

JPMorgan Equity Premium Income ETF (JEPI)

Next up is the JPMorgan Equity Premium Income ETF (JEPI), which has carved out a strong reputation among income-oriented market participants by offering sizable monthly distributions alongside diversified exposure to large-cap U.S. equities. Unlike JEPQ, which leans heavily toward tech stocks, JEPI takes a broader and more defensive approach with a portfolio built primarily around lower-volatility companies within the S&P 500.

The fund’s diversified mix of holdings spans technology, healthcare, industrials, consumer staples, energy, and utilities rather than leaning too heavily into any single sector. Some of its largest positions currently include Ross Stores (ROST), Amazon (AMZN), Howmet Aerospace (HWM), EOG Resources (EOG), Johnson & Johnson (JNJ), and NextEra Energy (NEE), giving the portfolio exposure to both defensive businesses and economically sensitive industries.

The fund combines that equity portfolio with a covered-call strategy designed to generate additional income through options premiums. That structure has helped JEPI maintain a trailing 12-month dividend yield of 8.41%, with distributions paid monthly. The ETF currently manages more than $44 billion in assets while carrying an expense ratio of 0.35%.

One investor, known by the pseudonym Quad 7 Capital, makes the bull case for JEPI by arguing that the ETF can play an important role alongside growth and value investments within a broader portfolio strategy. According to Quad 7 Capital, the monthly cash flow generated by JEPI can help fund additional opportunities over time, while the current price range looks attractive for gradually building a position. The investor also points out that the appeal of the fund ultimately depends on market conditions that can influence future payouts and covered-call income generation.

“We think JEPI is at levels you start to nibble again, being mindful of the conditions that impact the expected payout,” the investor summed up.