DIVO vs JEPI: Head-to-Head Comparison

Side-by-Side Comparison

Key Differences Between DIVO and JEPI

DIVO (Amplify CWP Enhanced Dividend Income ETF) is a covered call / dividend fund managed by Amplify. DIVO combines a portfolio of high-quality dividend-paying stocks with a tactical covered call writing strategy to generate enhanced income. The fund holds blue-chip stocks and selectively sells call options on individual holdings to boost cash flow. Beginners seeking above-average income with some downside protection will appreciate DIVO's blend of dividend income and option premium collection.

JEPI (JPMorgan Equity Premium Income ETF) is a covered call fund managed by JPMorgan. JEPI uses a unique strategy combining a portfolio of low-volatility S&P 500 stocks with equity-linked notes that generate income from selling call options on the S&P 500 index. This approach aims to deliver monthly income that far exceeds traditional dividend funds while reducing overall portfolio volatility. It has quickly become one of the most popular income ETFs due to its consistent high monthly distributions.

The most notable differences are in fees (0.55% vs 0.35%), number of holdings (30 vs 130), and 5-year returns (10.80% vs 8.00%).

Holdings Overlap Analysis

DIVO and JEPI share only 5% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.

Cost Comparison Over Time

If you invest $10,000 and hold for 20 years (assuming 8% annual returns):

Over 20 years, the fee difference amounts to $1,594 on a $10,000 investment. JEPI saves you more in fees over time.

Which One Should a Beginner Choose?

Choose DIVO if: You want income investors who want enhanced yield beyond what traditional dividend etfs offer, retirees seeking monthly income distributions from a high-quality stock portfolio, moderate-risk investors who are willing to trade some upside for higher current income. It's managed by Amplify with an expense ratio of 0.55%.

Choose JEPI if: You want retirees and income seekers who need high monthly cash distributions, investors who want equity exposure with reduced volatility and enhanced income, those willing to trade some upside potential for more consistent monthly payments. It's managed by JPMorgan with an expense ratio of 0.35%.

Can You Own Both DIVO and JEPI?

Absolutely! With only 5% overlap, DIVO and JEPI complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.

Frequently Asked Questions