Why GPIQ Outperforms JEPQ in High-Yield Tech ETF Space

In the high-yield tech ETF space, two contenders—Goldman Sachs Nasdaq-100 Core Premium Income ETF (GPIQ) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ)—have drawn significant attention. Both aim to deliver income and exposure to the Nasdaq-100's growth, but their strategies and outcomes diverge sharply. As of August 2025, GPIQ has outperformed JEPQ in total returns, risk-adjusted metrics, and income sustainability, making it a superior choice for investors seeking a balance of growth and yield.

Strategic Evaluation: Dynamic vs. Derivative-Heavy Models

GPIQ's edge begins with its dynamic covered call strategy, which sells call options on 25–75% of its holdings. This flexibility allows Goldman Sachs to adjust the options overlay monthly, optimizing for market conditions. For example, during the May 2025 Nasdaq-100 surge of 17%, GPIQ maintained a 10.15% yield while capping gains at 5–7%. This adaptability ensures consistent income without sacrificing all upside potential.

JEPQ, by contrast, relies on equity-linked notes (ELNs) to generate income. While these structured products offer principal protection, they lack the agility of GPIQ's active management. JEPQ's derivative-heavy model is less responsive to real-time market shifts, leading to underperformance in 2025. For instance, GPIQ's total return since inception (October 2023) stands at 29.07%, versus JEPQ's 25.00%. A $10,000 investment in GPIQ would have grown to $15,770.58 by August 2025, compared to $14,894.15 for JEPQ.

Risk-Adjusted Returns: GPIQ's Efficiency Edge

Risk-adjusted metrics further underscore GPIQ's superiority. Its Sharpe ratio (1.26) and Sortino ratio (1.98) outperform JEPQ's 1.14 and 1.78, respectively. These ratios indicate GPIQ generates better returns per unit of risk, particularly in downside scenarios. During the 2022 market correction, GPIQ's net asset value (NAV) fell 10% less than the Nasdaq-100, showcasing its volatility-mitigation benefits. JEPQ's max drawdown (-20.07%) was nearly identical to GPIQ's (-21.06%), but its recovery was slower, and its Calmar ratio (1.18) lagged behind GPIQ's 1.40.

Income Sustainability: Yield vs. Long-Term Viability

While JEPQ boasts a higher trailing twelve-month (TTM) yield (11.20%), GPIQ's 9.90% is more sustainable. JEPQ's high yield raises red flags: it may rely on a declining net asset value (NAV) to maintain payouts, a risky proposition in a low-yield environment. GPIQ's covered call strategy, however, generates recurring premiums that fund its $0.41 monthly dividend (as of June 2025), with a growing payout trend (up from $0.38 in May).

Moreover, GPIQ's tax efficiency—up to 30% of distributions qualifying as Return of Capital (ROC)—reduces taxable income for investors. JEPQ's derivative-heavy model offers no such advantage, making GPIQ more appealing for after-tax returns.

Cost Efficiency and Portfolio Composition

GPIQ's 0.29% expense ratio is 17% lower than JEPQ's 0.35%, compounding to significant savings over time. This cost advantage, combined with its concentration in high-growth tech stocks like NVIDIA, Microsoft, and Apple, positions GPIQ to capitalize on AI-driven market trends.

Investment Advice: Why GPIQ Wins for Income-Focused Investors

For investors prioritizing sustainable income and capital preservation, GPIQ's dynamic strategy offers a compelling edge. Its ability to adapt to market conditions, coupled with lower costs and superior risk-adjusted returns, makes it a standout in the high-yield tech ETF space. JEPQ, while offering a slightly higher yield, carries greater income sustainability risks and underperforms in volatile environments.

Actionable Takeaway: Allocate to GPIQ for a balanced approach to income and growth. Use a median-price buying strategy—purchasing when GPIQ dips below its 52-week average—to avoid overpaying during market peaks. Reinvest dividends to compound returns, leveraging GPIQ's monthly compounding structure.

In a market where volatility is the norm, GPIQ's strategic agility and income resilience make it the superior choice for investors seeking to harness the Nasdaq-100's growth while mitigating risk.