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SCHD vs JEPI: A Simple Comparison

Two of the most popular ETFs for income investors are SCHD and JEPI. But they serve very different purposes.

SCHD (Dividend Growth)

Schwab U.S. Dividend Equity ETF focuses on companies with a history of paying and increasing dividends. It typically offers a yield around 3-4% but comes with high capital appreciation potential and strong dividend growth.

• Best for: Long-term investors (10+ years), early retirees.
• Tax: Qualified dividends (lower tax rate).

JEPI (High Income)

JPMorgan Equity Premium Income ETF uses covered calls (options) to generate massive monthly income, often yielding 7-10%. However, its price appreciation is capped, and dividend growth is minimal.

• Best for: Investors who need immediate cash flow now.
• Tax: Ordinary income (higher tax rate).

Which One Do You Need?

If you need $1,000/month today with less capital, JEPI might look attractive. If you want $1,000/month in 10 years with safety, SCHD is often preferred.

Compare the Math

Run the numbers for both tickers on our calculator to see the difference in required capital.

DISCLAIMER: This is not financial advice. ETFs carry risk, including loss of principal.