<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>High yield and defensive strategies have outperformed the broader market in the current pullback.</li><li>Covered call strategies can deliver the yield, but it's really more about the underlying stock portfolio.</li><li>Between low-volatility (JEPI) and Nasdaq-100 (JEPQ) stocks, one is a clear winner right now.</li><li>10 stocks we like better than JPMorgan Equity Premium Income ETF ›</li></ul>On a relative basis, derivative income exchange-traded funds (ETFs) have seen one of the highest rates of net inflows over the past year. The highest-profile ETFs in this category have generally been the single-stock variety, but traditional covered call strategies are also drawing in new money.The two biggest ETFs in this group by far are the JPMorgan Equity Premium Income ETF (NYSEMKT: JEPI) and the JPMorgan Nasdaq Equity Premium Income ETF (NASDAQ: JEPQ).Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue »These funds became ultra-popular in 2022, when both stocks and bonds were cratering and investors pivoted to high-yield covered call products for income and safety. In the three years that followed that bear market, returns have moderated, but the inflows continue to pour in. Combined, these two ETFs have $78 billion in assets under management (AUM).As we kick off the second quarter of the year, let's break down these funds to see if they still make sense and which might be the better buy.<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTc1OC9nZXR0eWltYWdlcy0xNDkxMDI3NjYxLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg2MTc1OC9nZXR0eWltYWdlcy0xNDkxMDI3NjYxLmpwZyZ3PTcwMA"/>Image source: Getty Images. <h2>The case for the JPMorgan Equity Premium Income ETF</h2>This ETF is actively managed and targets stocks with below-market volatility and an attractive risk/return profile. On top of that portfolio, it writes out-of-the-money S&amp;P 500 call options in order to generate monthly income. The key here is the low-volatility stock portfolio. With top 10 holdings, such as Walmart, Johnson &amp; Johnson, NextEra Energy, and Ross Stores, this portfolio is built to withstand more challenging economic periods.That's exactly what the market is experiencing. U.S. gross domestic product (GDP) growth in fourth-quarter 2025 slowed to an annualized rate of just 0.7%. Month-over-month non-farm payroll growth has been negative in five of the past nine months. The Organization for Economic Cooperation and Development (OECD) recently put out a report forecasting a 4% inflation rate in the United States later this year. These are tough conditions that are generally not supportive of higher stock prices.Investing in more defensive stocks doesn't necessarily mean avoiding losses. But it is likely to be less volatile and come with less downside risk.Even though investing in covered call strategies reduces the upside potential of the JPMorgan Equity Premium Income ETF, that extra yield can help offset any share price losses in the coming months. This ETF could perform similarly to how it did in 2022.<h2>The case for the JPMorgan Nasdaq Equity Premium Income ETF</h2>This ETF follows a nearly identical investment methodology as the fund above, except it invests in the Nasdaq-100 stocks and writes out-of-the-money call options on the Nasdaq-100 index. But using this index gives this ETF a whole different risk/return profile.First, the added volatility of Nasdaq-100 stocks versus low volatility stocks generally means higher option income premiums. The JPMorgan Nasdaq Equity Premium Income ETF has a current yield of 11.4%.It also means investing in a tech-heavy index that isn't really in favor right now. The earnings growth rates of these companies have generally been solid, but many investors are raising questions about valuations and whether all this AI development spending will ultimately be worth it. Plus, if the economy and the labor market continue to slow, tech and growth stocks generally aren't the ones that usually outperform.<h2>JEPI vs. JEPQ: Which is the better buy in April?</h2>Based on macro conditions, the JPMorgan Equity Premium Income ETF is the better choice. In these challenging times, low-volatility stocks offer at least a modest layer of protection. These are the kind of durable, cash flow-generating companies that can survive with less damage. The steady demand for their products and services can mitigate some volatility risk as well.Over the long term, it may not perform as well as its Nasdaq-100-linked counterpart. In the here and now, however, I think it's the better choice.<h2>Should you buy stock in JPMorgan Equity Premium Income ETF right now?</h2> Before you buy stock in JPMorgan Equity Premium Income ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and JPMorgan Equity Premium Income ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $532,066!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,087,496!* Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 185% for the S&amp;P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 4, 2026. David Dierking has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends NextEra Energy and Walmart. The Motley Fool recommends Johnson &amp; Johnson. The Motley Fool has a disclosure policy. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. </div></div>

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The article compares two ETFs: JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). JEPI focuses on low-volatility stocks and aims to provide income through covered call strategies, making it suitable for current economic challenges. In contrast, JEPQ targets Nasdaq-100 stocks, offering higher yields but with increased volatility. Given the current macroeconomic conditions, JEPI is deemed the better buy for stability, while JEPQ may not perform as well in the short term. Investors are advised to consider other top stock recommendations as well.

- High-yield and defensive strategies, particularly covered call ETFs like JPMorgan Equity Premium Income ETF (JEPI) and Nasdaq Equity Premium Income ETF (JEPQ), have gained popularity amid economic uncertainty.  
- JEPI focuses on low-volatility stocks, making it a preferable option in challenging market conditions, while JEPQ, tied to the more volatile Nasdaq-100, offers higher yields but associated risks.  
- Currently, JEPI appears to be a better buy due to its potential for stability, despite the long-term growth prospects of JEPQ.

JEPI vs. JEPQ: Which Is the Better Buy in April?