Covered-Call Fund Limited Losses but Gave Up More Gains Than Nasdaq-100 Rival
Over the 24 months ending September 30, 2026, JEPQ outperformed QQQM in all nine down months but lagged in 11 of 15 up months. JEPQ returned 39.97% for the period, while QQQM returned 53.25%. The fund’s downside protection was smaller than the upside it gave up, making it more suitable for income-focused retirees than for investors seeking Nasdaq-100 growth.
The comparison covers 24 month-end periods from Sept. 30, 2024, through Sept. 30, 2026, using dividend-adjusted monthly returns. JEPQ’s distributions are included, and the two-year figures compound those monthly results. QQQM tracks the Nasdaq-100 and serves as the comparison point.
JEPQ’s largest downside cushion occurred in July 2026: it fell 4.22% while QQQM dropped 6.5%. Its biggest upside shortfall came in April 2026, when it gained 7.83% versus QQQM’s 15.69%. JEPQ’s net expense ratio was 0.35%, and its option income is generally taxed as ordinary income; all cited returns are pre-tax.
The results could shape how retirement-income investors and their advisers weigh covered-call funds against plain Nasdaq-100 exposure. Income-focused retirees may value smaller declines and monthly distributions, while long-horizon savers could find the forgone upside costly. Because option payouts are often taxed as ordinary income, taxable accounts may feel an added drag. Clearer expectations about trading growth for income could improve product suitability and reduce disappointment when strong rallies leave these funds behind.