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SCHD vs JEPI

Schwab U.S. Dividend Equity ETF vs JPMorgan Equity Premium Income ETF

The short answer: SCHD is a dividend-growth ETF aimed at long-term total return. JEPI sells covered calls to generate high monthly income, sacrificing some upside.

Metric
SCHD
JEPI
Issuer
Charles Schwab
JPMorgan
Benchmark
Dow Jones U.S. Dividend 100 Index
S&P 500 (overlay strategy)
Inception
Oct 20, 2011
May 20, 2020
Expense Ratio(lower is better)
600 bps
3500 bps
AUM(higher = more liquid)
$91.1B
$45.6B
Dividend Yield (TTM)
3.29%
8.29%
Dividend Frequency
Quarterly
Monthly
Beta (vs S&P 500)(1 = market)
0.61
0.48
1-Year Return
25.49%
9.35%
3-Year Return (annualized)
15.09%
9.75%
5-Year Return (annualized)
8.05%
7.57%
10-Year Return (annualized)
12.56%
—
Data as of May 9, 2026. Returns annualized; past performance is not indicative of future results.

Total Return

YTDSCHD: 6.93% · JEPI: -1.82%
1YSCHD: 25.49% · JEPI: 9.35%
3Y ann.SCHD: 15.09% · JEPI: 9.75%
5Y ann.SCHD: 8.05% · JEPI: 7.57%
10Y ann.SCHD: 12.56% · JEPI: —

Which should you pick?

Choose SCHD

Pick SCHD if you're in the accumulation phase and want long-term growth. Its dividend grows over time and your principal participates fully in market upside.

Choose JEPI

Pick JEPI if you're already retired or near it and need 7%+ annual income now. The tradeoff: capped upside in bull markets and income that can fluctuate with options premiums.

Either is fine if…

Some retirees split: 60% SCHD as the growth engine, 40% JEPI for monthly cash flow. Don't expect JEPI to also grow your portfolio — that's not what it's built for.

Holdings & sectors

SCHD – Top Holdings

  • ABBVAbbVie Inc4.4%
  • KOCoca-Cola Co4.1%
  • VZVerizon Communications4.0%
  • AMGNAmgen Inc3.9%
  • PEPPepsiCo Inc3.9%

JEPI – Top Holdings

  • MAMastercard Inc1.8%
  • PGRProgressive Corp1.7%
  • VVisa Inc1.7%
  • AMZNAmazon.com Inc1.6%
  • MSFTMicrosoft Corp1.6%

Sector Breakdown

Financials
SCHD
18.0%
JEPI
16.0%
Healthcare
SCHD
16.0%
JEPI
14.0%
Consumer Staples
SCHD
14.0%
JEPI
10.0%
Industrials
SCHD
11.0%
JEPI
13.0%
Technology
SCHD
9.0%
JEPI
13.0%
Energy
SCHD
12.0%
JEPI
6.0%
Consumer Discretionary
SCHD
7.0%
JEPI
10.0%
Communication
SCHD
5.0%
JEPI
9.0%
Materials
SCHD
4.0%
JEPI
3.0%
Utilities
SCHD
2.0%
JEPI
4.0%
Real Estate
SCHD
2.0%
JEPI
2.0%

At a glance

Expense ratio
SCHD600 bps
JEPI3500 bps
AUM
SCHD$91.1B
JEPI$45.6B
Dividend yield
SCHD3.29%
JEPI8.29%
5Y return (ann.)
SCHD8.05%
JEPI7.57%

SCHD vs JEPI – FAQ

Why does JEPI yield so much more than SCHD?
JEPI generates yield from two sources: stock dividends (~1.5%) plus option premiums from selling covered calls (~5–6%). SCHD only earns dividends. JEPI's higher yield is engineered, not free.
Is JEPI's high yield sustainable?
The option-premium portion fluctuates with market volatility — JEPI yielded ~12% in 2022's high-vol environment but closer to 7–8% in calm markets. Long-term sustainable yield is probably in the 7–9% range.
Does JEPI lag SCHD in bull markets?
Yes, significantly. By selling covered calls, JEPI caps its upside in any given month. In strong years like 2023 and 2024, SCHD and the broader market beat JEPI on total return.
Is JEPI better for taxable accounts or IRAs?
JEPI is much more tax-efficient in an IRA. Its option premium income is taxed as ordinary income, not qualified dividends, so it can create a meaningful tax drag in a taxable account.
Can I hold both SCHD and JEPI?
Yes, and many investors do. A common split is 60–70% SCHD (growth + dividends) plus 20–30% JEPI (monthly income). This balances upside participation with cash flow.

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