SCHDvs JEPI

Quick verdict

Schwab U.S. Dividend Equity ETF (SCHD) and JPMorgan Equity Premium Income ETF (JEPI) are often compared by investors building a core portfolio. Their holdings overlap by roughly 35.8% (moderate overlap), sharing 8 of their top positions. SCHD is cheaper at 0.06% vs 0.35%, JEPI pays more income, and SCHD has the stronger recent track record. On balance JEPI scores higher, but if overlap is high you likely only need one of the two.

Holdings overlap

SCHD and JEPI overlap by about 35.8% across their largest holdings, which is moderate. There is meaningful shared exposure but also genuine differences, so pairing them is defensible if you want a tilt.

2-year relative performance

At-a-glance comparison

Cost

SCHD is the lower-cost fund. SCHD charges an expense ratio of 0.06% versus 0.35% for JEPI. On a $10,000 position that is about $6 vs $35 per year — small, but it compounds over decades.

Income & yield

SCHD yields 3.5% and JEPI yields 7.5%, so JEPI is the stronger choice for income-focused investors. Higher yield can reflect a value or covered-call strategy rather than simply "more free money," so check the category: US Dividend Value vs US Income / Covered Call.

Performance

Over five years SCHD has returned 15.8% annualised against 8.8% for JEPI; on a three-year basis it is 21.2% vs 21.2%. SCHD leads recently, though past performance does not predict future results and is heavily influenced by sector weightings.

Structure & diversification

SCHD holds about 121 positions (US Dividend Value, Schwab); JEPI holds about 168 (US Income / Covered Call, JPMorgan). JEPI is the more diversified by raw holding count, and AUM is 80.3B vs 301.9B — larger funds tend to be more liquid with tighter spreads.

Which ETF fits which investor

For the lowest cost, choose SCHD. For the most income, JEPI. For growth exposure, SCHD. Given 35.8% overlap, holding both mainly makes sense if you specifically want to tilt toward one strategy — otherwise pick the single fund that matches your goal. This is a factual comparison, not advice.

• Lowest cost: SCHD
• Most income: JEPI
• Growth exposure: SCHD

Frequently asked questions

How much do SCHD and JEPI overlap?

Their largest holdings overlap by approximately 35.8% (moderate), sharing 8 top positions. There is room for both to add diversification.

Which is cheaper, SCHD or JEPI?

SCHD is cheaper, with an expense ratio of 0.06% versus 0.35%.

Which has the higher dividend yield?

SCHD yields 3.5% and JEPI yields 7.5%, so JEPI pays more income.

Should I own both SCHD and JEPI?

With 35.8% overlap, owning both can be reasonable if you want to combine their different exposures.

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