QQQI leads the income ETF sector with 12.4% payout growth and a 14.95% yield, offering significant tax advantages over JEPQ through Section 1256 contracts and return of capital distributions.
QQQI leads payout growth at 12.4% and offers a 14.95% trailing yield with tax advantages from Section 1256 and return of capital classifications.
JEPQ still beats inflation with 11.2% TTM payout growth and an 11.1% yield but is structurally less tax-efficient and lower yielding than QQQI.
SCHD missed inflation with TTM payout growth of about 1.4%, below 3.4% CPI.
SPYI grew payouts about 12.2%, outpacing 3.4% inflation.
QDTE cleared the inflation hurdle as one of the Roundhill 0DTE covered call funds.
XDTE cleared the inflation hurdle as the other Roundhill 0DTE covered call fund.
PEY delivered a $1.04 TTM payout and outpaced inflation.
Six of seven major income ETFs successfully outpaced 3.4% inflation, with the NEOS Nasdaq-100 High Income ETF (QQQI) leading the group. QQQI offers a 14.95% trailing yield and superior tax treatment compared to the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), making it a compelling alternative for income-focused investors.
QQQI sells index options that qualify as Section 1256 contracts, taxed at a favorable 60/40 split, and classifies a significant portion of distributions as nontaxable return of capital, whereas JEPQ's ELN coupons are taxed as ordinary income.
If your holdings are in an IRA, the switch is tax-free and offers higher yield and growth. In taxable accounts, investors should consider gradual reallocation to avoid triggering capital gains on existing JEPQ positions.