DIVO vs JEPI: Monthly Income ETFs Trade-Off Yield for Principal Protection

Two exchange-traded funds (ETFs) are vying for investors' attention in their quest for monthly income: Amplify CWP Enhanced Dividend Income ETF (DIVO) and JPMorgan Equity Premium Income ETF (JEPI). Both use covered-call overlays on large-cap equities to fund their distributions, but the way each fund treats shareholder capital over time reveals a stark contrast.

Over the past year, DIVO gained 19.69% while JEPI returned 11.46%. The disparity continues when looking at five-year returns: DIVO is up 69.64%, compared to JEPI's 43.38%. This is due in part to DIVO's selective call writing strategy, which leaves more upside uncapped.

JEPI, on the other hand, runs a broader book with no position above 1.8% and uses equity-linked notes to sell index-level calls, capping rallies. As a result, monthly distributions for JEPI are prone to volatility swings, ranging from $0.32586 to $0.54001 in 2025, and even hitting $0.6104 back in 2022 when option premiums were richer.

For investors prioritizing principal protection, DIVO earns a 'Safe' rating, while JEPI lands at 'Moderate Risk to Principal.' For those accepting the trade-off between yield and share price growth, JEPI's 7.65% forward yield and 0.35% expense ratio may be attractive.

However, for income investors expecting equities to continue growing, DIVO's selective approach may be more suitable, as its five-year price appreciation has outpaced that of JEPI.