SPYI Outperforms JEPI in Covered Call ETF Performance and Sustainability: A Three-Year Analysis

In the evolving landscape of income-focused exchange-traded funds (ETFs), the NEOS S&P 500 High Income ETF (SPYI) has emerged as a standout performer against its peer, the JPMorgan Equity Premium Income ETF (JEPI). Over the past three years, SPYI has consistently delivered superior total returns, higher dividend yields, and more effective risk-adjusted performance, while also demonstrating a favorable environmental profile. This analysis examines the factors driving SPYI's dominance in the covered call ETF space and evaluates its sustainability credentials relative to JEPI.

Performance: Total Return and Yield Leadership

From 2023 to 2025, SPYI has outpaced JEPI in nearly every key performance metric. In 2023 alone, SPYI returned 18.13%, significantly outperforming JEPI's 9.81% total return. This trend continued in 2024, with SPYI posting a 19.04% return versus JEPI's 12.58%. As of year-to-date (YTD) 2025, SPYI has added 12.95% to investor portfolios, compared to JEPI's 4.85%. Over the full three-year period, SPYI's annualized return of 17.72% dwarfs JEPI's 10.02%, underscoring its ability to capitalize on market opportunities.

Dividend yields further highlight SPYI's edge. The fund's trailing twelve-month yield of 11.61% exceeds JEPI's 8.17%, reflecting its focus on high-income-generating strategies. This performance is driven by SPYI's structured approach to selling covered calls on the S&P 500, which enhances yield while maintaining exposure to equity upside.

Strategy Execution: Efficiency and Risk Management

While SPYI carries a higher expense ratio of 0.68% compared to JEPI's 0.35%, its risk-adjusted returns justify the cost. SPYI's Sharpe Ratio of 1.05 and Sortino Ratio of 1.56 outperform JEPI's 0.67 and 1.03, respectively, indicating superior efficiency in balancing returns with downside risk.

Portfolio turnover also reveals strategic differences. JEPI's turnover rate reached 172% as of November 30, 2025, reflecting a more active trading approach. In contrast, SPYI's strategy, which emphasizes growth sectors like technology (34% of holdings), may imply higher turnover but aligns with its focus on capturing momentum in high-growth areas. This active management has translated into stronger performance during periods of market optimism, such as the 2023–2024 bull market.

Sustainability Considerations: ESG and Environmental Impact

Sustainability metrics present a nuanced picture. JEPI holds a higher ESG score of 6.68 (86.25th percentile among peers) compared to SPYI's 6.25 (61.17th percentile). Additionally, JEPI allocates a larger portion of its portfolio to Sustainable Impact Solutions (5.63% vs. SPYI's 8.97%). However, SPYI's environmental profile is more favorable: its Weighted Average Carbon Intensity of 90.18 tons of CO2e per $M sales is significantly lower than JEPI's 157.81 tons. This suggests that while JEPI excels in certain ESG frameworks, SPYI's lower carbon footprint may appeal to investors prioritizing climate risk mitigation.

Conclusion: SPYI's Case for Long-Term Viability

The NEOS S&P 500 High Income ETF's combination of robust performance, disciplined risk management, and improving environmental metrics positions it as a superior choice for investors seeking income and growth. While JEPI offers competitive ESG scores, SPYI's ability to deliver higher yields, stronger total returns, and a cleaner carbon footprint makes it a more compelling option in the covered call ETF space. As the market continues to prioritize both financial and environmental outcomes, SPYI's strategy appears better aligned with long-term investor goals.