The Goldman Sachs S&P 500 Premium Income ETF (GPIX) has significantly outperformed the JPMorgan Equity Premium Income ETF (JEPI) over the past year, delivering a 17% total return compared to JEPI’s 9%, despite offering nearly identical yields. This divergence is attributed to their distinct investment strategies and portfolio constructions.

GPIX’s direct ownership of S&P 500 components allows it to capture full gains from leading stocks like Apple, whereas JEPI’s use of equity-linked notes with capped upside limits its participation in market rallies. Investors must weigh GPIX’s higher return potential against its greater downside risk in market downturns, versus JEPI’s smoother ride with capped upside.

GPIX Out-Yielded JEPI and Returned 17.37% to Its 9.33%. JEPI Is Still 9.5 Times Bigger

Two option-income ETFs sell calls against the same index, pay nearly identical yields, and yet one nearly doubled the other's total return over the past year. The way each fund is built explains why.