The bottom line up front: SCHD builds wealth over time. JEPI delivers stable monthly income with lower volatility. QYLD maximizes current cash flow at the cost of capital growth. The right choice depends on your time horizon - but for non-US investors, withholding tax changes the math significantly for all three.
These three funds are among the most widely held dividend ETFs in the world - but they operate on fundamentally different logic. Choosing between them is not a question of which is “best.” It is a question of what you are actually trying to accomplish.
The Basics (May 2026)
| JEPI | SCHD | QYLD | |
|---|---|---|---|
| Manager | JPMorgan | Charles Schwab | Global X (Mirae) |
| Launched | May 2020 | October 2011 | December 2013 |
| Price | ~$56.33 | ~$32.83 | ~$17.88 |
| AUM | $45.61B | $95.23B | $8.33B |
| Expense Ratio | 0.35% | 0.06% | 0.60% |
| Management | Active | Passive (index) | Passive (index) |
| Strategy | Covered calls on S&P 500 stocks | Dividend-growth equities | Covered calls on Nasdaq-100 |
Sources: JPMorgan Fact Sheet 30/4/2026; Schwab Asset Management; Yahoo Finance, May 2026.
SCHD is the largest by assets and the cheapest to hold. JEPI is the world’s largest actively managed ETF by AUM. QYLD is the smallest and most expensive of the three.
Dividend Yield
| JEPI | SCHD | QYLD | |
|---|---|---|---|
| Dividend Yield | ~8.3% | ~3.2-3.8% | ~11.5-12.2% |
| Frequency | Monthly | Quarterly | Monthly |
| Income source | Options premium (80%) + dividends (20%) | Company dividends | Options premium |
| 10-Year dividend growth (CAGR) | Not applicable (fund too young) | ~10-12% | Near zero to negative |
Sources: Yahoo Finance (JEPI yield 8.29%, May 26 2026); Global X (QYLD TTM distribution 12.18%, May 26 2026); Schwab Asset Management.
JEPI note: The 30-Day SEC Yield was 8.45% as of March 31, 2026 and 9.78% as of April 30, 2026. That swing reflects the fund’s dependence on options premium rather than a fixed dividend - income varies directly with market volatility.
SCHD note: The current yield of 3-4% understates the long-run picture. An investor who bought SCHD at launch in 2011 at approximately $8.47 earns roughly 12.4% yield-on-cost today, the product of 14 years of compounding dividend growth at ~10-12% annually.
QYLD note: The trailing twelve-month distribution rate is 12.18% per Global X’s official fund page as of May 26, 2026. This is the gross distribution yield - what arrives in your account before withholding tax (see below).
Total Return vs. Benchmark
Trailing Twelve Months (to end May 2026)
| SCHD | JEPI | QYLD | S&P 500 | QQQ (Nasdaq-100) | |
|---|---|---|---|---|---|
| TTM Total Return | 28.69% | 9.05% | 7.81%-24.17%** | ~18-20% | ~22-25% |
| YTD 2026 | ~19.7% | ~1.0% | ~3.7-7.2% | ~10-12% | ~14-18% |
Sources: TotalRealReturns.com (SCHD 28.69%, May 27; JEPI 9.05%, May 27); Yahoo Finance (JEPI YTD 0.91%, May 26); FinanceCharts (SCHD YTD 19.67%); FinanceCharts (QYLD YTD 3.70%).
QYLD TTM range explained: Two pages on the same platform (FinanceCharts) report 7.81% and 24.17% respectively for QYLD TTM total return. The most likely explanation: the 7.81% figure uses a measurement window ending at a point when QYLD’s price was near a recent low, while the 24.17% figure uses a window ending near a recent high. QYLD’s price fluctuates within a relatively narrow band (~$16-18), so small differences in the end date produce large differences in reported total return. The dividend component (~12%) is consistent across sources. The range 7.81%-24.17% is presented as-is; for a definitive figure, verify on Morningstar or ETF.com with a specific stated date range.
SCHD caveat: SCHD underwent a significant index rebalancing in March 2025 that produced an atypical price surge. The TTM figure of 28.69% is influenced by this event and is not representative of SCHD’s normal long-run behavior.
Reading the benchmark columns: JEPI’s covered call strategy delivered 9.05% TTM in a year where the S&P 500 returned approximately 18-20% and the Nasdaq-100 returned approximately 22-25%. That gap is the known cost of the strategy - lower volatility in downturns, partial upside cap in strong markets. QYLD, writing at-the-money calls on the Nasdaq-100, capped upside more aggressively and delivered far less than QQQ in what was a strong year for tech.
5-Year CAGR
| SCHD | JEPI | QYLD | S&P 500 | |
|---|---|---|---|---|
| 5Y CAGR | ~8.7-9.2% | ~7.6% | ~7.9-8.0% | ~15% |
Sources: FinanceCharts (SCHD 8.71-9.18%, JEPI 7.61%, QYLD 7.92-8.02%); S&P 500 approximate 5Y CAGR.
All three funds converged at 7-9% annually over five years - similar total returns from very different sources. The important context: all three significantly underperformed the S&P 500’s ~15% annual return over the same period. That underperformance is an expected outcome for income-focused strategies that sacrifice growth for current cash flow.
Risk Metrics
| SCHD | JEPI | QYLD | |
|---|---|---|---|
| Max Drawdown (since inception)* | -33.37% | -13.71% | -24.75% |
| Beta (5Y monthly) | ~0.75 | 0.48 | 0.49 |
| Current volatility (1M) | ~3.1% | ~1.7% | ~2.0% |
Source: PortfoliosLab (since inception, May 2026).
On Max Drawdown - an important caveat: These are since-inception figures for funds launched at different times. SCHD launched in 2011 and its -33.37% occurred during the 2022 bear market. JEPI launched in May 2020 and its -13.71% reflects a shorter history that did not include the full 2022 decline from its inception price. QYLD launched in 2013. Comparing since-inception drawdowns across funds with different start dates is directionally useful but not a clean apples-to-apples comparison. The more consistent takeaway is the beta: JEPI’s 0.48 beta means it structurally falls roughly half as much as the market in any given decline, regardless of the measurement window.
On Sharpe Ratio: The 3-year Sharpe Ratio is the most meaningful version for comparing these funds - it smooths out short-term anomalies and covers a full market cycle including 2022’s bear market and the 2023-2025 recovery. However, reliable 3Y Sharpe data for all three funds from a single consistent source is not publicly available in a static, verifiable form. PortfoliosLab’s TTM Sharpe fluctuates daily and shows JEPI ranging from 0.45 to 1.33 depending on the measurement date - making any single number misleading. If you need a current Sharpe comparison, check portfolioslab.com directly on the same date for all three tickers.
How Each Fund Actually Works
SCHD - Dividend Growth Compounding
SCHD tracks the Dow Jones U.S. Dividend 100 Index - 100 US equities selected for demonstrated dividend payment history and underlying financial strength. The fund holds 103 stocks, with sector weights concentrated in energy (19%), consumer defensive (18.5%), and healthcare (16%).
The core mechanism is compounding dividend growth. Dividends have grown at approximately 10-12% annually since inception in 2011. A $10,000 investment at launch has grown to over $32,000 in current value - approximately 13% annualized total return since inception, per TotalRealReturns.com. The expense ratio of 0.06% is among the lowest available anywhere in the ETF market.
The limitation is current income: a 3-4% yield means SCHD is poorly suited for investors who need significant cash flow today. It is a wealth-building instrument, not an income-extraction instrument.
JEPI - Monthly Income with a Volatility Cushion
JEPI is an actively managed JPMorgan fund. It allocates approximately 80% to low-volatility S&P 500 equities and 20% to Equity-Linked Notes (ELNs) - structured instruments issued by financial counterparties whose return is linked to an options strategy. Specifically, the ELNs embed short out-of-the-money call options on the S&P 500. The options premium flows through as monthly income distributions.
ELNs differ from direct covered call writing. Rather than owning the underlying stocks and selling calls against them, JEPI holds notes whose payout is tied to the performance of that options strategy. The practical income result is similar, but the structure is more complex and the fund’s active management means the portfolio composition, option strike selection, and ELN allocation can change over time.
The result: higher income (8-9%) with a lower beta than the S&P 500 (5Y monthly beta: 0.48 per Yahoo Finance). JEPI typically falls less than the market in downturns and participates in most of the upside with some cap in strongly trending bull markets. The 2026 YTD data - JEPI up ~1% while the S&P 500 gained ~10-12% - reflects exactly this dynamic.
QYLD - Maximum Current Yield, Minimal Capital Growth
QYLD holds the Nasdaq-100 and sells at-the-money call options on the entire index monthly - the most aggressive options overlay of the three. This generates 11-12% annual yield in distributions but structurally eliminates most capital appreciation potential. When the Nasdaq-100 rises, QYLD’s call options are exercised and the fund does not participate in the upside. When the Nasdaq-100 falls, QYLD falls with the index, cushioned only by the premium received.
The consequence is structural price erosion over time. QYLD’s 5-year price CAGR is approximately -4.4% per FinanceCharts - the share price has declined since launch. The 5-year total return of roughly 8% annually survives only because the distribution yield offsets and slightly exceeds the price decay. An investor who spends the distributions rather than reinvesting them is steadily eroding their asset base.
The expense ratio of 0.60% is the highest of the three and contributes to the drag. On $100,000 of QYLD, that is $600 per year in fees before any market movement.
The Withholding Tax Problem for Non-US Investors
This is the analysis that most JEPI/SCHD/QYLD comparisons omit entirely - and it materially changes the conclusion for investors outside the United States.
US-listed ETFs are subject to US withholding tax on dividends paid to non-US investors. The standard rate under most US tax treaties is 15%. For residents of countries without a US tax treaty, the rate is 30%. This is applied at source - before any local income tax in your country of residence.
Here is what the three funds actually yield for a non-US investor, before local tax:
| Gross Yield | After 15% WHT | After 30% WHT | |
|---|---|---|---|
| SCHD | ~3.5% | ~3.0% | ~2.5% |
| JEPI | ~8.3% | ~7.1% | ~5.8% |
| QYLD | ~12.2% | ~10.4% | ~8.5% |
The impact is largest on QYLD and JEPI, which are most dependent on distributions. The effective yield on JEPI drops from 8.3% to 7.1% in a treaty country - a meaningful reduction. QYLD’s headline 12.2% drops to 10.4%.
SCHD’s structural advantage for non-US investors: A significant portion of SCHD’s total return is capital appreciation rather than dividend distributions. Capital gains on ETF price increases are not subject to US withholding tax for non-US investors - only the dividend component is. Since SCHD’s dividend yield is low (3-4%) relative to its historical total return (13%+ annually since inception), the majority of SCHD’s long-run return arrives as price appreciation free of US withholding. This is a meaningful structural advantage that QYLD and JEPI cannot match.
QYLD’s structural disadvantage: QYLD’s return is almost entirely distributions - all subject to withholding. The 12.2% gross figure is what most comparison articles quote. For a non-US investor in a treaty country, the net is 10.4% before local tax. In a non-treaty country, 8.5%.
US estate tax: Non-US residents holding US-listed ETFs face US estate tax on holdings above $60,000. Given that long-term SCHD investors can accumulate substantial positions, this is a meaningful risk for larger portfolios. Investors managing this exposure should consult a cross-border tax adviser or consider UCITS-domiciled alternatives where available.
Who Should Choose What
| Investor profile | Recommended fund |
|---|---|
| Building wealth over 20+ years | SCHD |
| Retiree needing stable monthly income | JEPI |
| Maximum current cash flow, no growth needed | QYLD (with caution) |
| Tax-sheltered account | QYLD or JEPI |
| Taxable account, non-US investor | SCHD (most WHT-efficient) |
| Volatile or declining market environment | JEPI (lower beta) |
| Post-crash entry, growth orientation | SCHD |
Final Comparison
| SCHD | JEPI | QYLD | |
|---|---|---|---|
| Gross yield | ~3.5% | ~8.3% | ~12.2% |
| Yield after 15% WHT (non-US) | ~3.0% | ~7.1% | ~10.4% |
| Dividend growth | ~10-12%/yr | Minimal | Near zero |
| TTM total return | 28.69%* | 9.05% | 7.81%-24.17%** |
| 5Y total return (CAGR) | ~8.7-9.2% | ~7.6% | ~7.9-8.0% |
| vs. S&P 500 5Y CAGR (~15%) | -6% | -7% | -7% |
| Expense ratio | 0.06% | 0.35% | 0.60% |
| Price stability (5Y price CAGR) | Positive | Roughly flat | ~-4.4% |
| Max drawdown (since inception) | -33.37% | -13.71% | -24.75% |
| AUM / liquidity | $95B | $45B | $8B |
| WHT efficiency (non-US) | High | Medium | Low |
SCHD TTM influenced by March 2025 rebalancing event; not representative of normal long-run performance. *QYLD TTM range reflects different measurement end-dates on the same platform (FinanceCharts); see TTM table note above for full explanation.
The Conclusion
There is no single winner - but there is a clear logic.
SCHD is the best choice for most long-term investors, and particularly for non-US investors in taxable accounts. Low costs, proven dividend growth, and a return structure weighted toward capital appreciation rather than distributions make it the most withholding-tax-efficient of the three. It will not deliver 12% today - but it is the only one of the three with a realistic path to 12%+ yield-on-cost over a decade of compounding.
JEPI offers the most balanced trade-off: meaningful income (7.1% net of 15% withholding for treaty-country investors) with substantially lower volatility than the market. It is the natural choice for the income-extraction phase of a portfolio, where capital preservation matters as much as yield, and for investors who want monthly distributions without the structural price erosion of QYLD.
QYLD is a tactical instrument for a specific situation: maximum cash flow now, with no expectation of capital growth. After 15% withholding, the net yield for treaty-country investors is approximately 10.4% gross before local tax. That is genuinely attractive in absolute terms. The trade-off is structural: a price that trends downward over time, an expense ratio that compounds against you, and a return that is almost entirely subject to withholding tax.
A widely used combination: SCHD (40%) + JEPI (40%) + QYLD (20%) - balancing long-term growth, stable income, and maximum yield. For non-US investors in taxable accounts, weighting toward SCHD improves the overall portfolio’s withholding tax efficiency without sacrificing meaningful income.
This article is for informational purposes only and does not constitute investment advice. Withholding tax rates depend on the tax treaty between the US and your country of residence - verify the applicable rate with a qualified tax adviser. All yield figures are gross of local income tax. Market data as of May 2026. Past performance does not predict future results.
Sources: JPMorgan JEPI Fact Sheet (30/4/2026); Schwab Asset Management (SCHD); Yahoo Finance (May 26-27, 2026); TotalRealReturns.com (TTM figures, May 27, 2026); FinanceCharts.com (5Y CAGR and performance data); Global X QYLD fund page (distribution rate, May 26, 2026); PortfoliosLab (drawdown and beta data, May 2026); IRS Publication 515 (withholding tax rates).
