Stress-Testing JEPI & JEPQ for Retirement

Описание: Which High-Yield Income ETF's do not have significant NAV Erosion AND deliver consistent income? Testing JEPI and JEPQ in this video.
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NAV erosion in high-yield option-income ETFs is the gradual loss of share price over time as the fund distributes a large portion of option premium and sometimes capital, while structurally capping its ability to fully recover in strong up markets.

What NAV erosion is (in this context)
In covered-call and 0DTE/derivatives-based income ETFs, NAV erosion typically comes from:

Systematically selling upside: Writing calls on most or all of the notional means the fund participates fully in drawdowns but only partially in sharp recoveries, so long-term price compounding lags the underlying index.

Paying out “too much” cash: If distributions materially exceed the underlying’s organic total return (price appreciation + dividends), the fund must effectively return capital, gradually walking NAV down.

Whipsaw/volatility effects: Fast down-then-up markets (e.g., crash and V-shaped recovery) are especially damaging because the strategy sells calls into volatility, captures downside, then repeatedly caps the upside needed to get back to prior highs.

Total return (NAV change + distributions reinvested) can still be competitive even if the price chart alone looks like a slow bleed; the “erosion” discussion is mostly about price level stability vs income level.

QYLD: textbook NAV erosion risk
QYLD (Global X Nasdaq 100 Covered Call ETF) sells at-the-money calls on 100% of the Nasdaq-100 exposure and distributes most of the premium as monthly income.

Structure: Fully covered, index-level, typically ATM calls on the Nasdaq-100, so upside is heavily capped every month.
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Outcome: It tends to track drawdowns closely but underparticipate in subsequent rallies, which has led to long-run NAV decline even while paying double‑digit yields.

Evidence: One analysis estimates QYLD’s NAV declined at about −3–4% annually over a multi‑year period, despite attractive headline yield, because the strategy misses many of the strong up days that drive long-term equity returns.
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In other words, QYLD is a classic example where investors see a stable or declining price plus large distributions: strong cash flow, but meaningful NAV erosion risk and lower long-run total return relative to simply holding QQQ.

QQQI: high income with limited NAV decay (so far)
QQQI (NEOS Nasdaq-100 High Income ETF) is also an income-focused options fund on the Nasdaq-100, but it is designed more around tax-efficient, actively managed call exposure rather than a simple “always 100% ATM covered call” rule.

Active overlay: NEOS adjusts call strikes and notional rather than mechanically overwriting 100% ATM, aiming to keep more upside for NAV while still generating high income.

1256 contracts & tax management: QQQI uses index options taxed under section 1256 (60/40 treatment) and incorporates tax-loss harvesting on options and equity holdings, targeting more tax-efficient income for taxable investors.

Distribution target: The fund explicitly targets a high annualized distribution rate (recent marketing has referenced a high‑teens to low‑20% range, after fees) from a mix of option premium and equity income.
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QDTE: extreme yield, higher NAV-erosion risk
QDTE (Roundhill Innovation‑100 0DTE Covered Call Strategy ETF) runs a very different play: a synthetic covered call/overlay on an “Innovation‑100” tech/growth basket using 0‑days‑to‑expiry (0DTE) options, targeting enormous headline yield.

Structure: Uses short‑term (0DTE) index options to generate frequent premium while holding exposure to an innovation-focused equity index.