TDVI: A Tax-Efficient, High-Income Alternative to JEPQ in the Tech Space

Performance: TDVI Outpaces JEPQ in Total Return

Over the past three years, TDVI has demonstrated superior compound growth compared to JEPQ. As of November 2025, TDVI's 3-year annualized return stands at 23.34%, significantly outperforming JEPQ's 15.50% over the same period. This gap widens when examining year-to-date (YTD) performance, with TDVI achieving a 17.08% return versus JEPQ's modest 5.67% according to analysis. While JEPQ showed strong annualized returns in 2023 (36.28%) and 2024 (24.89%) according to data, its recent underperformance underscores the volatility inherent in its options-based strategy.

Dividend Yield vs. Tax Efficiency: A Trade-Off

Expense Ratios and Strategic Allocation

JEPQ's lower expense ratio (0.35%) compared to TDVI's (0.75%) according to data might initially seem advantageous. However, TDVI's active management strategy-targeting high-dividend technology stocks-appears to justify its higher fees. The ETF's outperformance in total return and tax efficiency suggests that the additional cost is offset by superior risk-adjusted returns. Moreover, TDVI's focus on capital gains harvesting and tax-loss harvesting according to analysis further enhances its value proposition.

Tax Efficiency: A Critical Edge for Long-Term Investors

Tax efficiency is a cornerstone of sustainable income strategies. TDVI's distributions are composed of 46% net investment income and short-term capital gains, whereas JEPQ's reliance on options results in less favorable tax outcomes according to research. For context, strategic asset allocation focused on after-tax returns can enhance long-term wealth by approximately 0.35% annually, according to financial insights, translating to over 10% in retirement savings over 30 years. TDVI's structure aligns with this principle, making it a more attractive option for tax-conscious investors.

Conclusion: TDVI as the Preferred Choice

While JEPQ offers a higher dividend yield and lower expense ratio, its tax inefficiency and recent underperformance limit its appeal for long-term, income-focused investors. TDVI, by contrast, combines superior total returns, tax-advantaged distributions, and a strategically managed portfolio to deliver a more holistic solution. For those prioritizing after-tax income and growth in the technology sector, TDVI represents a compelling alternative to JEPQ.