What if I told you that one of America’s most popular dividend ETFs, holding over $71 billion, returned a measly 0.61% over the past year… while its younger, flashier rival delivered 4.34%? 😱
And here’s the kicker: you might be betting on the wrong one.
By the end of this post, you’ll know exactly which ETF deserves a spot in your portfolio. But first, tell me—are you team SCHD or team JEPI? Let’s see if you change your mind by the end! 👀
The Contenders
We’re talking about two giants in dividend investing:
SCHD (Schwab US Dividend Equity ETF) – the seasoned veteran
JEPI (JP Morgan Equity Premium Income ETF) – the fast-rising newcomer
As of October 2025, these funds are telling completely different stories about income investing. One has a 14-year track record, the other a 5-year meteoric rise, and both are fighting for your attention.
SCHD: The Reliable Veteran 🏛️
Launched in 2011, SCHD has grown to $71.48 billion in assets under management. Its ultra-low expense ratio of 0.06% makes it the “Costco” of dividend ETFs—no frills, just value.
SCHD invests in 103 dividend aristocrats—companies paying dividends for at least 10 consecutive years. Think healthcare giants, consumer staples, and industrial titans. Over the years, SCHD has been the boring but dependable choice for steady dividend growth.
…but 2025 has been rough. Its 1-year return is only 0.61%. If you invested $10,000 a year ago, you’d have earned… just $61. Yikes.
JEPI: The Flashy Newcomer 🚀
Launched in 2020, JEPI has already grown to $41.27 billion in assets—a remarkable feat for a fund so young. Its expense ratio is higher at 0.35%, but here’s why it’s worth it:
JEPI uses a covered call strategy to generate premium income.
Holds 125 positions, actively managing derivatives to boost income.
Provides monthly dividends with an eye-catching 8.33% yield.
If you invested $100,000 in JEPI today, you’d earn $8,330 annually, versus $3,780 with SCHD. That’s $4,550 more in your pocket every year! 💰
Performance Face-Off
Year-to-date 2025:
SCHD: 2.84%
JEPI: 5.24%
1-year return:
SCHD: 0.61%
JEPI: 4.34%
3-year annualized:
SCHD: 11.29%
JEPI: 10.17%
5-year annualized:
SCHD: 12.04%
JEPI: 11.61%
📊 The verdict? Short-term, JEPI is crushing it. Long-term, SCHD still has credibility—but there are structural risks with its heavy energy allocation (~20%) and low tech exposure (9%) in a world driven by AI and tech innovation.
Why JEPI Wins for Income Investors
Monthly cash flow – no more waiting 3 months for your dividends.
Lower volatility – moves only 59% as much as the S&P 500 vs SCHD’s 79%.
Premium income strategy – collects option premiums to cushion market dips.
Better diversification – top 10 holdings are only 15.81% of the portfolio vs SCHD’s 40.67%.
Bottom line: if you need consistent, higher income with less stress, JEPI is engineered to deliver.
But SCHD Isn’t Dead Yet
SCHD still makes sense if you’re:
Young and building wealth for the long term
A low-cost, passive investor
Betting on traditional dividend sectors bouncing back
It’s about patience, not panic, and over decades, those 0.06% fees compound beautifully—if the fund performs.
The Takeaway
Investing isn’t about being perfect—it’s about maximizing your edge. Right now, the edge goes to JEPI for income-focused investors and retirees. If you want monthly dividends, higher cash flow, and smoother returns, JEPI is your pick.
💡 Want to grab JEPI today? Start investing with Moomoo and get your ETF journey going! Click here to buy now: https://j.moomoo.com/0xFRE4
📈 Don’t miss out—make your money work smarter!
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