From 24/7 Wall St. · Ryne Mauck · · 1m 20s
Inflation 3.4% Gas Up 27%: Six Income Funds Beat Prices
Six income ETFs raised payouts faster than inflation, with QQQI offering tax advantages over JEPQ.
In brief
Six income ETFs raised payouts faster than inflation, with QQQI offering tax advantages over JEPQ. The NEOS Nasdaq-100 High Income ETF (QQQI) outperforms JEPQ by raising payouts 12.4% versus 11.2% while offering better tax treatment in taxable accounts. Originally reported by 24/7 Wall St..
Inflation 3.4% Gas Up 27%
Inflation is 3.4% and gas prices rose 27.4% year over year according to August CPI data.
Six Income ETFs Beat Inflation
Six popular income ETFs raised payouts faster than inflation over the past year, with only Schwab U.S. Dividend Equity ETF missing the mark.
JEPQ's 11.1% Yield
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) pays 11.1% trailing yield on $60.92 shares with $6.76 per share payout.
QQQI's 12.4% Payout Growth
NEOS Nasdaq-100 High Income ETF (QQQI) raised trailing payouts 12.4% to $8.28 per share versus JEPQ's 11.2%.
Tax Advantage Difference
QQQI classifies 98.86% of distributions as return of capital under IRC Section 301(c)(2), reducing tax burden in taxable accounts.
Taxable Account Tradeoff
QQQI offers better after-tax returns in taxable accounts with $13.1 billion net assets versus JEPQ's $40.7 billion.
Distribution Strategy Shift
Switching from JEPQ to QQQI in taxable accounts requires checking cost basis to avoid triggering capital gains tax.
The essence
The NEOS Nasdaq-100 High Income ETF (QQQI) outperforms JEPQ by raising payouts 12.4% versus 11.2% while offering better tax treatment in taxable accounts.
