JPMorgan Runs Another Fund That Beat JEPI. It Returned 21.63% Over the Past Year Against JEPI’s 8.07%.
JPMorgan manages two very different ETFs, and the gap between their long-term results raises a question every retiree holding the popular monthly-income fund should think through carefully before their next contribution.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Retirees favor the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) because JEPI turns a stock portfolio into a monthly paycheck. That job matters, and the fund does it. On total return, JEPI trails. JEPI gained 8.07% over the past year. Over the same period, the JPMorgan U.S. Quality Factor ETF (NYSEARCA:JQUA), run by the same asset manager, returned 21.63%. That works out to a gap of 13.56 percentage points. Both one-year windows start on October 27, 2025, and both figures assume every distribution was reinvested.
JQUA Wins Every Time Period We Measured
The one-year result matches a consistent pattern. Here is how the two funds compare across every window in our data.
| Period | JQUA | JEPI | JQUA Lead (Points) |
|---|---|---|---|
| One month | 3.02% | 1.87% | 1.15 |
| Year to date | 22.1% | 6.6% | 15.5 |
| One year | 21.63% | 8.07% | 13.56 |
| Five years | 89.12% | 42.9% | 46.22 |
The five-year row matters most. A matching $100,000 position opened on October 28, 2021, grew to $189,120 in JQUA and $142,900 in JEPI. No window in our data shows JEPI coming out ahead. For a holder who reinvested every JEPI payout, that difference is wealth the portfolio never built.
In delayed quotes from early Wednesday afternoon, October 28, JQUA traded at $76.53 and JEPI at $57.47. Return per dollar invested is the measure that counts here, regardless of share price.
Every Figure Assumes You Reinvested the Payouts
All of these returns assume every distribution went back into the fund. That assumption matters most for JEPI, because many owners spend its monthly payments on groceries, utilities, and property taxes. An investor who took the cash did not get these returns, and the summary does not show what that investor ended up with. If you live on JEPI’s distributions, read the table as a measure of what the fund produced, which is a different number from what landed in your account.
Two JPMorgan Funds Built for Opposite Jobs
JPMorgan’s fact sheet dated September 30, 2026, says JEPI is designed to provide current income while keeping chances for capital appreciation. It generates that income by selling options and owning U.S. large-cap stocks, aiming for a monthly stream drawn from option premiums and stock dividends. It also looks for lower volatility than the broad large-cap market. Selling options gives up some upside in exchange for cash, and the monthly payments rise and fall with market conditions.
JQUA tracks the JP Morgan US Quality Factor Index. Its own fact sheet says the fund follows a rules-based approach that matches Russell 1000 sector weights and selects stocks on quality and profitability characteristics. It pays quarterly, and income comes as a side effect of owning profitable companies. JQUA also carries full stock-market exposure and has no stated goal of muting volatility. A JEPI holder who switches takes on that risk profile along with the better record.
Retirees who depend on monthly cash flow have a legitimate reason to own JEPI despite its lower total return. Switching means giving up that income stream. To replace it, you would have to sell JQUA shares on a schedule, including during down markets, which is the exact outcome a dividend ladder is designed to avoid (we walked through how to build one in a free guide here).
Limits on This Comparison and the Cost of Switching
Our price history for JEPI begins on May 21, 2020, so no ten-year comparison exists. Five years is the longest window available, and it covers both rising and falling markets.
Selling JEPI in a taxable brokerage account can trigger capital gains tax on any appreciation, which reduces the amount you reinvest. Inside an IRA or 401(k), the swap carries no immediate tax bill. Taxable holders who want more growth without selling can send new contributions, or JEPI’s own distributions, into JQUA and shift the mix gradually.
Income Now or Growth Later Decides It
If you reinvest JEPI’s payouts and won’t need the cash for years, JQUA beat it in every window we measured, a record that makes it a relevant point of comparison. If JEPI’s monthly checks cover your bills, JEPI’s design matches that need, because a total-return gap does little for someone who needs cash this month. Your answer depends on one question: do you need income now, or growth over time?
Contact [email protected] for any questions or corrections.
Ryne Mauck is an investment writer covering exchange-traded funds, retirement planning, and portfolio strategy. Through his work at 24/7 Wall St. and other investment platforms, including Seeking Alpha, he aims to provide clear, research-driven insights that help investors make more informed decisions while maintaining a long-term approach to investing.
Ryne holds a B.Sc. in Finance and an M.A. in Political Science. He is a formerly registered Municipal Advisor Representative and has passed the Series 50, Series 63, and Series 65 exams. His articles are not intended to be, nor should they be interpreted as, financial advice.
