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JEPQ vs. VTWO – A Comprehensive Comparison

Discover a comparison of JEPQ vs. VTWO to determine which is best for you! Use the table below to compare their key characteristics.

JEPQ vs. VTWO Key Characteristics

MetricsJEPQVTWO
1-Year Annual Return36.28%17.00%
5-Year Annual Return010.03%
Expense Ratio0.35%0.10%
Dividend Yield9.91%1.30%
Number of Holdings871983

Overview of JEPQ

JEPQ is the JPMorgan Nasdaq Equity Premium Income ETF, which is designed to provide exposure to the Nasdaq-100 Index with less volatility by selling call options against the NDX index. The fund is great for those seeking stable income while maintaining exposure to large-cap stocks within the Nasdaq-100. Investors must be aware that selling call options caps capital gains appreciation but also reduces volatility.

Overview of VTWO

VTWO, the Vanguard Russell 2000 ETF, is an exchange-traded fund managed by Vanguard. This ETF aims to track the performance of the Russell 2000 Index, which is a benchmark index representing the small-cap segment of the U.S. equity market. The primary objective of VTWO is to provide investors with exposure to the small-cap sector of the U.S. stock market.

Performance Comparison of JEPQ vs. VTWO

The total return performance including dividends is crucial to consider when analyzing different investment funds. 

As of 1/15/2024, JEPQ has a one year annualized return of 36.28%, while VTWO has a five year annualized return of 17.00%. 

JEPQ vs. VTWO Dividend Yield

Both JEPQ and VTWO pay dividends to their shareholders from the earnings of their underlying stocks. The dividend yield is a measure of how much a company pays in dividends relative to its share price.

As of 1/15/2024 the dividend yield of JEPQ is 9.91%, while the dividend yield of  VTWO is 1.30%. 

JEPQ vs. VTWO Expense Ratios

The expense ratio is a measure of how much an ETF charges its investors for managing the fund. It is expressed as a percentage of the fund’s assets per year.

The expense ratio is one of the most important factors to consider when choosing an ETF because it directly affects your returns over time. The lower the expense ratio, the more money you get to keep from your investment.

As of 1/15/2024 JEPQ has an expense ratio of 0.35%, while VTWO has an expense ratio of 0.10%. 

JEPQ vs. VTWO Holdings

A fund’s holdings are the basket of individual securities that it owns and tracks. It is crucial for investors to analyze a fund’s holdings because they are effectively what you are investing in by purchasing the fund. 

As of 1/15/2024 JEPQ holds 87 securities, while VTWO holds 1983. 

ETF Comparison Tool

I created an ETF comparison tool you can use with the chart below. Simply search for multiple ETFs or mutual funds to easily compare the key metrics of over 2,000 funds.

Mutual Funds vs. ETFs

When comparing investment funds, you may be confused about the difference between an ETF and a mutual fund. Keep in mind, an index fund is a specific type of mutual fund. ETFs are tradeable during the stock market hours, while mutual funds only update once per day.

etf vs mutual fund table comparison

Mutual funds are pooled investment vehicles that are managed by a fund company or an investment advisor. They issue and redeem shares directly to investors at the end of each trading day based on their net asset value (NAV). Investors can buy and sell mutual fund shares through the fund company or a broker.

ETFs are also pooled investment vehicles that are managed by a fund company or an investment advisor. However, they trade like stocks on an exchange throughout the trading day at market prices that may differ from their NAV. Investors can buy and sell ETF shares through a broker.

Some of the advantages and disadvantages of mutual funds vs ETFs are:

  • Mutual funds may offer more convenience and flexibility for investors who want to invest a fixed amount of money or set up automatic investments or withdrawals.
  • Mutual funds may require a larger minimum investment.
  • ETFs may incur bid-ask spreads and premiums or discounts to their NAV, which can affect their trading efficiency and performance.
  • Mutual funds may be less tax-efficient than ETFs, as they may distribute more capital gains to their shareholders due to their redemption mechanism.
  • ETFs may be more tax-efficient than mutual funds, as they may avoid realizing capital gains through their creation and redemption mechanism.

JEPQ vs. VTWO - Bottom Line

Ultimately, both JEPQ and VTWO are solid investment choices. The choice between the two ultimately depends on the exposure you want and the amount of risk you are willing to take. 

Hopefully, the information in this article helps you decide which is better for your portfolio. To continue your research, check out our other fund comparison articles as well!

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare.

Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

tradingview plus icon

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you'd like using the widget. Alternatively, sign up for a free TradingView account and use the main website for a better experience.

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