Goldman Sachs' GPIX, GPIQ Beat JPMorgan's JEPI, JEPQ in Key Metrics

JPMorgan (NYSE: JPM ) has become one of the biggest players in the active ETF industry, thanks to its premium income ETFs, JEPI and JEPQ, which give investors exposure to the equity market while delivering strong monthly dividend income.

The JPMorgan Equity Premium ETF (NYSE: JEPI ) has accumulated over $45 billion in assets under management.

Similarly, the JPMorgan Nasdaq Equity Premium ETF (NYSE: JEPQ ) is slowly approaching the $40 billion mark.

Goldman Sachs (NYSE: GS ) has also entered the premium income ETF space, launching funds like the Goldman Sachs S&P 500 Premium Income ETF (NASDAQ: GPIX ) and the Goldman Sachs Nasdaq-100 Premium Income ETF (NASDAQ: GPIQ ), which hold $5 billion and $5.1 billion in assets, respectively.

While JPMorgan’s funds are bigger and more popular, a closer look shows Goldman Sachs’s funds are beating them on some important metrics.

First, they’re substantially cheaper: GPIX and GPIQ carry an expense ratio of 0.29%, compared to the 0.35% charged by JEPI and JEPQ.

That difference may look small, but it can add up over time.

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GPIX has a dividend yield of 8.11%, while JEPI has 7.96%.

Similarly, the GPIQ ETF has a 10.7% yield compared to JEPQ’s 10.1%.

Finally, and most importantly, Goldman Sachs’ funds have a better total return than those offered by JPMorgan.

GPIQ’s total return this year is 11.6%, while JEPQ has returned just 6%.

Its return in the last 12 months was 22% compared to JEPQ’s 17.7%.

Similarly, GPIX has returned 20% in the last 12 months and 10% this year.

JEPI has returned 10% and 4.5%, respectively, this year.

JEPI vs JEPQ vs GPIX vs GPIQ performance Why GPIX and GPIX are Beating JEPI and JEPQ Goldman Sachs’ funds do better than those offered by JPMorgan because of how they are created.

GPIX and GPIQ normally sells call options with strikes that are further out-of-the-money (OTM), while JPMorgan tends to be more conservative.

By selling further OTMs, Goldman Sachs collects less premium income, but caps away less of the stock’s upside, which is important during a bull market.

Another key difference between the two is that JEPI and JEPQ normally write calls on close to 100% of the notional exposure through OTM index options tied to the underlying stock baskets.

Goldman Sachs normally overwrites a smaller portion of the portfolio.

The only caveat is that, while Goldman Sachs’s funds have a better return, they normally experience more volatility than those offered by JPMorgan.

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