LQDW vs. JEPQ

Last updated Jun 4, 2026

LQDW (iShares Investment Grade Corporate Bond Buywrite Strategy ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) are both exchange-traded funds - LQDW is a Corporate Bonds fund tracking the CBOE LQD BuyWrite Index, while JEPQ is a Nasdaq-100 fund tracking the Nasdaq-100 Index. Both are passively managed. Over the past 3 years, LQDW returned 3.79%/yr vs 20.92%/yr for JEPQ. At a 0.30 correlation, their price movements are largely independent. LQDW charges 0.34%/yr vs 0.35%/yr for JEPQ.

Performance

LQDW vs. JEPQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LQDW achieves a 1.25% return, which is significantly lower than JEPQ's 9.54% return.

LQDW

• 1D: -0.20%
• 1M: 0.83%
• YTD: 1.25%
• 6M: 1.65%
• 1Y: 6.49%
• 3Y*: 3.79%
• 5Y*: —
• 10Y*: —

JEPQ

• 1D: -0.10%
• 1M: 4.31%
• YTD: 9.54%
• 6M: 9.75%
• 1Y: 29.00%
• 3Y*: 20.92%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LQDW vs. JEPQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	1.25%	9.05%	2.60%	3.99%	-6.78%
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	9.54%	15.18%	24.85%	36.28%	-10.11%

Correlation

The correlation between LQDW and JEPQ is 0.34, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.34
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (All Time) Calculated using the full available price history since Aug 23, 2022	0.30

Return for Risk

LQDW vs. JEPQ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LQDW

LQDW Risk / Return Rank: 54
LQDW Sharpe Ratio Rank: 53
LQDW Sortino Ratio Rank: 53
LQDW Omega Ratio Rank: 61
LQDW Calmar Ratio Rank: 50
LQDW Martin Ratio Rank: 54

JEPQ

JEPQ Risk / Return Rank: 74
JEPQ Sharpe Ratio Rank: 74
JEPQ Sortino Ratio Rank: 71
JEPQ Omega Ratio Rank: 80
JEPQ Calmar Ratio Rank: 65
JEPQ Martin Ratio Rank: 80

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LQDW vs. JEPQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	LQDW	JEPQ	Difference
Sharpe ratio Return per unit of total volatility	1.85	2.49	-0.64
Sortino ratio Return per unit of downside risk	2.62	3.29	-0.67
Omega ratio Gain probability vs. loss probability	1.38	1.49	-0.11
Calmar ratio Return relative to maximum drawdown	2.51	3.31	-0.79
Martin ratio Return relative to average drawdown	9.39	16.22	-6.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LQDW vs. JEPQ - Sharpe Ratio Comparison

The current LQDW Sharpe Ratio is 1.85, which is comparable to the JEPQ Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of LQDW and JEPQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	LQDW	JEPQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.85	2.49	-0.64
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	1.00	-0.55

Drawdowns

LQDW vs. JEPQ - Drawdown Comparison

The maximum LQDW drawdown since its inception was -9.20%, smaller than the maximum JEPQ drawdown of -20.07%. Use the drawdown chart below to compare losses from any high point for LQDW and JEPQ.

Drawdown Indicators

	LQDW	JEPQ	Difference
Max Drawdown Largest peak-to-trough decline	-9.20%	-20.07%	+10.87%
Max Drawdown (1Y) Largest decline over 1 year	-2.59%	-8.82%	+6.23%
Max Drawdown (3Y) Largest decline over 3 years	-6.74%	-20.07%	+13.33%
Current Drawdown Current decline from peak	-0.35%	-0.10%	-0.25%
Average Drawdown Average peak-to-trough decline	-2.35%	-3.42%	+1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.69%	1.79%	-1.10%

Volatility

LQDW vs. JEPQ - Volatility Comparison

iShares Investment Grade Corporate Bond Buywrite Strategy ETF (LQDW) has a higher volatility of 1.46% compared to JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) at 1.26%. This indicates that LQDW's price experiences larger fluctuations and is considered to be riskier than JEPQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LQDW	JEPQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.46%	1.26%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	3.02%	9.07%	-6.05%
Volatility (1Y) Calculated over the trailing 1-year period	3.53%	11.73%	-8.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.49%	16.61%	-11.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.49%	16.61%	-11.12%

LQDW vs. JEPQ - Expense Ratio Comparison

LQDW has a 0.34% expense ratio, which is lower than JEPQ's 0.35% expense ratio.

Dividends

LQDW vs. JEPQ - Dividend Comparison

LQDW's dividend yield for the trailing twelve months is around 12.57%, more than JEPQ's 10.07% yield.

Position	TTM	2025	2024	2023	2022
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	10.07%	10.53%	9.65%	10.03%	9.44%
LQDW iShares Investment Grade Corporate Bond Buywrite Strategy ETF	12.57%	16.02%	15.74%	19.28%	8.85%

Frequently Asked Questions

Can I hold both LQDW and JEPQ in my portfolio?

LQDW and JEPQ have a correlation of 0.34, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LQDW or JEPQ?

LQDW has higher volatility (1.46%) compared to JEPQ (1.26%). In terms of maximum drawdown, LQDW dropped -9.20% vs JEPQ's -20.07%.

Which ETF is better, LQDW or JEPQ?

On 3-year performance, JEPQ leads with 20.92% vs 3.79% for LQDW. On fees, LQDW is cheaper at 0.34% per year. On volatility, JEPQ has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LQDW or JEPQ?

Over the 3-year period, JEPQ has performed better with a 20.92% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LQDW or JEPQ?

LQDW is cheaper with a 0.34% expense ratio, compared with 0.35% for JEPQ.

Which ETF pays a higher dividend yield, LQDW or JEPQ?

LQDW has the higher dividend yield at 12.57%, compared with 10.07% for JEPQ.

What is the main difference between LQDW and JEPQ?

LQDW is categorized as Corporate Bonds, while JEPQ is Nasdaq-100. LQDW tracks CBOE LQD BuyWrite Index, while JEPQ tracks Nasdaq-100 Index. They also come from different issuers: iShares and JPMorgan. Their fees differ too: 0.34% for LQDW and 0.35% for JEPQ.

Which has better risk-adjusted returns?

JEPQ currently has the higher Sharpe Ratio (2.49 vs 1.85), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.