JEPQ vs MSTY: Comparing High-Yield Covered Call ETFs for Income Investors in 2025

$JEPQ vs MSTY: Which High-Yield ETF Stands Out in 2025?

$JEPQ ( ▼ 0.55% )  

$MSTY ( ▼ 2.76% )  

As monthly income strategies grow in popularity, two covered call ETFs stand out for income-focused portfolios: the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and the YieldMax MSTR Option Income Strategy ETF (MSTY). Both aim to deliver high monthly payouts but differ sharply in diversification, risk, and sustainability. Here’s how they compare as of July 7, 2025.

JEPQ: Tech-Focused, Broadly Diversified

• Objective: Seeks steady monthly income and moderate growth by investing in Nasdaq-100 stocks and writing covered calls.

• Holdings: ~100 large-cap tech stocks, including Apple, Microsoft, and Nvidia, which spreads risk.

• Yield: ~11–12% annually, paid monthly, primarily from option premiums.

• Performance: ~13.35% one-year total return, -6.14% YTD (2025).

• Volatility: Moderate, buffered by diversification.

• Expense Ratio: 0.35%.

• AUM: ~$25 billion.

• Launch Date: May 2022.

MSTY: Single-Stock Bitcoin Proxy with Explosive Yield

• Objective: Generates high monthly income by harvesting option premiums tied to MicroStrategy (MSTR), which holds 531,644 BTC.

• Holdings: Synthetic exposure to MSTR; non-diversified.

• Yield: ~123–140% annually, much of which is return of capital.

• Performance: ~139.43% one-year total return, ~24.20% YTD (2025).

• Volatility: High; MSTY tracked a 40.83% drawdown in March when Bitcoin dropped sharply.

• Expense Ratio: 0.99%.

• AUM: ~$5.5 billion.

• Launch Date: February 2024.

Income Profiles Compared

JEPQ’s distributions reflect genuine income generation. MSTY’s sky-high yield is partly funded by returning investor capital, which can erode long-term value.

Simulated 10-Year Growth: $10,000 Invested

To illustrate the possible paths, here’s a simple 10-year Dividend Reinvestment Plan (DRIP) simulation:

Assumptions:

• JEPQ: 11% yield with modest growth, 0.35% fees

• MSTY: 100% yield (much is return of capital), 10% share price growth, 0.99% fees

• JEPQ Line (Blue): Shows steady growth from $9,965.00 (Year 0) to $20,858.64 (Year 10), reflecting a 7.64% CAGR.

• MSTY Line (Orange): Shows aggressive growth from $9,901.00 (Year 0) to $102,567.12 (Year 10), reflecting a 26.27% CAGR.

• The chart uses the simulation data from the previous response, based on historical yields (11% for JEPQ, 100% for MSTY), assumed share price growth (5% for JEPQ, 10% for MSTY), and dividend reinvestment.

• MSTY’s high growth assumes consistent dividends and share price appreciation, which is uncertain due to its Bitcoin-driven volatility and potential NAV decay from return of capital.

• The chart highlights JEPQ’s stable, linear growth versus MSTY’s exponential but riskier trajectory.

• For further details, review the prospectuses at yieldmaxetfs.com for MSTY and jpmorgan.com for JEPQ, and consult a financial advisor.

This paints the contrast clearly: JEPQ shows steady, compounding growth. MSTY, if its extreme payouts hold, could snowball dramatically — but that’s a big “if” when NAV decay and Bitcoin swings are in play.

Risk Snapshot

MSTY magnifies Bitcoin’s price action via MSTR. A steep Bitcoin correction directly impacts MSTY’s income and NAV.

Costs and Market Sentiment

• JEPQ: Low 0.35% fee and $25B AUM reflect strong demand for steady, diversified tech income.

• MSTY: Higher 0.99% fee covers the active management of a synthetic options strategy tied to a volatile stock.

JEPQ is often praised for its reliability. MSTY attracts traders willing to harvest short-term volatility but wary of the long-term drag from capital returns.

Comparative Analysis

Key Takeaways: Who Might Each Suit?

JEPQ may suit those who:

• Want broad tech exposure with moderate yield and less volatility

• Prefer stable, consistent distributions with minimal NAV decay

• Have a long-term income horizon

MSTY may attract those who:

• Are bullish on Bitcoin and MSTR’s price swings

• Accept high risk for high potential yield

• Are comfortable with distributions funded by return of capital and possible NAV erosion

Final Word

JEPQ offers a balanced route to steady monthly income through broad Nasdaq-100 exposure. MSTY pushes the envelope with an aggressive, high-yield approach tied to a single Bitcoin proxy.

Before allocating capital, review each ETF’s prospectus at jpmorgan.com and yieldmaxetfs.com, and assess how these align with your risk profile and income goals.

Disclaimer: Past performance does not guarantee future results. Always confirm data and understand the risks before investing.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Always conduct your own research or speak to a qualified professional before investing.