JPMorgan’s JEPQ (NYSEARCA:JEPQ) Delivers 10.61% Yield and 16% NAV Growth as $30.9B AUM Rides AI

JPMorgan Nasdaq Equity Premium Income ETF (NYSEARCA:JEPQ) Strengthens to $56.33 as Yield Tops 10.6% and $30.9B AUM Cement Its Covered-Call Dominance

JPMorgan Nasdaq Equity Premium Income ETF (NYSEARCA:JEPQ) continues to outperform peers in a volatile tech-heavy market, closing at $56.33, down 2.26% on October 10, 2025, but maintaining a powerful year-to-date gain of 8.64% and an annualized return of 14.8%. Backed by $30.9 billion in assets under management (AUM), the fund now delivers a 10.57% trailing twelve-month yield, supported by its recurring monthly distribution of $0.4461. With its net asset value (NAV) at $56.32, JEPQ is positioned as one of the strongest performers in the covered-call ETF category, combining growth exposure to the Nasdaq-100 Index with income generation through equity-linked notes (ELNs).

Macro Tailwinds: Fed Rate Cuts and Tech Boom Power JEPQ

The macro backdrop in late 2025 remains highly favorable for JEPQ. The Federal Reserve’s 25-basis-point cut in September pushed the federal funds rate into the 4.00–4.25% range, triggering a rally across technology equities and providing strong pricing support for option overlays. With U.S. GDP revised up to 3.8% for Q2, reflecting strong consumer demand, and AI infrastructure spending reaching unprecedented levels, JEPQ’s portfolio of mega-cap tech stocks is ideally placed to capture both income and capital growth.

The ETF’s top holdings reveal this focus clearly. NVIDIA (NASDAQ:NVDA) leads with an 8.72% weighting, followed by Microsoft (NASDAQ:MSFT) at 7.25% and Apple (NASDAQ:AAPL) at 7.13%. The remaining top positions—Alphabet (GOOG), Amazon (AMZN), Broadcom (AVGO), Meta (META), and Tesla (TSLA)—push JEPQ’s Magnificent Seven exposure to 38%, giving it a highly concentrated allocation toward the AI and data center boom. Combined, the top 10 holdings account for 47.06% of the ETF’s total assets.

AI Megatrend and Data Center Surge Drive Income and Growth

The foundation of JEPQ’s bullish setup lies in the scale of capital expenditure reshaping global AI infrastructure. The $100 billion NVIDIA–OpenAI partnership, Microsoft’s $17.4 billion Nebius AI deal, and Meta’s $14.2 billion CoreWeave contract have set off a cascade of hyperscaler investments. These multibillion-dollar deals drive demand for semiconductor supply chains and cloud infrastructure—the very industries JEPQ is most exposed to.

NVIDIA forecasts data center capital expenditure to reach $1 trillion by FY2028, a 4x expansion from FY2023 levels. That projection directly benefits JEPQ’s holdings, all of which are suppliers or key beneficiaries of this infrastructure transformation. As volatility rises, the covered-call strategy generates higher premium income, enhancing returns even during sideways markets.

Performance Metrics: Consistency Outpaces Volatility

Since its inception in May 2022, JEPQ’s annualized NAV return stands at 16.15%, a remarkable outperformance compared to the Global X Nasdaq 100 Covered Call ETF (QYLD), which has averaged below 8%. The ETF’s monthly payout and option overlay strategy have provided investors with stable cash flow during periods of volatility, and its NAV growth continues to trend upward alongside major tech benchmarks.

In 2024, JEPQ returned 24.89%, outpacing its category’s average of 17.59%. In 2023, it achieved 36.23%, more than doubling the 14.97% median return of its peers. With a three-year return of 23.92% versus 13.92% for the category, JEPQ’s combination of income and capital appreciation makes it one of the most efficient derivative-income ETFs in the market.

October Volatility and the Case for Covered-Call Dominance

October’s historical volatility amplifies the relevance of JEPQ’s income-based structure. Over 67 years of data show October as the most volatile month for equities, with 362 trading days featuring S&P 500 moves greater than 1%—58 more than August, the next most volatile month. Such conditions increase the premiums JEPQ collects through its ELN overlay, creating a yield advantage over passive index funds.

The yield spread between JEPQ and QQQ averages 7.77% historically, yet it now sits at 9.9%, demonstrating a compelling income premium. With QQQ’s P/E ratio elevated at 33.65x—roughly one-third higher than the 10-year median of 25.38x—covered-call ETFs like JEPQ benefit from valuation discipline while maintaining high exposure to the same underlying tech ecosystem.

Fund Flow Momentum and Investor Positioning

JEPQ’s $9.21 billion net inflows in 2025 highlight sustained institutional and retail confidence. That figure makes it one of the year’s top five inflow ETFs across all asset classes. Investors seeking yield alternatives amid moderate volatility have been rotating into derivative-income strategies, reinforcing liquidity and compression in bid-ask spreads.

Despite its expense ratio of 0.35%, which is higher than QQQ’s 0.2%, investors have accepted the trade-off given JEPQ’s robust monthly distributions and consistent NAV growth. Moreover, its beta of 0.78 relative to the Nasdaq 100 indicates that it achieves strong returns with significantly lower volatility—an appealing characteristic during tightening cycles or tech corrections.