Dividend Fund Outpaced a Popular Income ETF Over Five Years
Over five years with distributions reinvested, DVY returned 58.53% and JEPI returned 43.22%, turning $100,000 into $158,530 and $143,220 respectively. JEPI paid much more income—about $8,000 over the trailing year on $100,000 versus $3,390 for DVY—and distributed it monthly rather than quarterly. Selling JEPI to buy DVY inside an IRA avoids immediate tax, but doing so in a taxable account can create capital gains.
The comparison uses identical five-year periods starting October 20, 2021, and assumes all payouts were reinvested. DVY is BlackRock’s iShares Select Dividend ETF; JEPI is JPMorgan’s Equity Premium Income ETF. JEPI’s larger monthly payout comes partly from option premiums, so its distribution amount can change; its latest monthly payment was $0.34134 per share, below the prior month’s $0.37142.
DVY also had stronger one-year and year-to-date total returns, while JEPI led over the latest month. Delayed quotes showed DVY at $159.48 and JEPI at $57.34. For investors spending distributions rather than reinvesting, JEPI’s cash-flow experience differs from its reinvested total-return figure.
Retirees and income-focused investors may weigh JEPI’s larger monthly cash flow against DVY’s stronger reinvested total return, potentially changing which funds they hold in retirement accounts. Taxable-account holders could face capital gains if they switch, while IRA owners may avoid immediate tax. The comparison may encourage savers to separate spending needs from long-term growth and to examine distribution variability, but it is unlikely to settle the broader debate over income versus total return.