JPMorgan Sells a Value ETF for 0.12%. JEPI Owners Walk Right Past It

If you own the JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI), you already trust JPMorgan with part of your retirement money. Few JEPI owners have looked at the JPMorgan U.S. Value Factor ETF (NYSEARCA:JVAL). It is a broad value fund that charges 0.12% a year. JEPI charges 0.35%. On a $100,000 position, that works out to about $120 in annual fees for JVAL and $350 for JEPI.

The two funds do different jobs. Before you decide where new money goes, it helps to see how they differ.

What JVAL Owns and How It Picks Stocks

JVAL tracks the JP Morgan US Value Factor Index. The index starts with Russell 1000 stocks, matches Russell 1000 sector weights, and then picks stocks on relative valuation metrics. The fund keeps the market’s sector mix and, within each sector, leans toward the companies that look cheapest.

That sector-matching rule means the holdings include some names you might not expect in a value fund. As of July 31, 2026, Microsoft (NASDAQ:MSFT | MSFT Price Prediction) and Apple (NASDAQ:AAPL) were each about 2.1% of net assets, along with other large technology and semiconductor companies. Remaining holdings are spread across banks, energy, health care, utilities and telecom, and no single position dominates.

Income Engine Versus Valuation Engine

JEPI produces income by selling options while holding U.S. large-cap stocks. It aims to pay monthly income and to be less volatile than the large-cap market. As of September 30, 2026, its 30-day SEC yield was 7.45%, and its three-year beta was 0.42. It held 140 stocks, and information technology made up 15.6% of the portfolio, 24.1 points below the S&P 500.

JVAL’s 30-day SEC yield was 1.73% on the same date. JEPI gives up some upside in exchange for cash flow and a smoother ride. JVAL keeps full stock market exposure with a tilt toward cheaper shares. A retiree who needs monthly income may lean toward JEPI (we rounded up seven other funds and stocks that pay every 30 days in a free report here). Money you won’t touch for a decade may suit JVAL better. Some investors could hold both, using JEPI for spending money and JVAL for long-term growth.

Performance and Cost Side by Side

The Vanguard Value ETF (NYSEARCA:VTV) is included as a mainstream value benchmark. All returns have been adjusted for distributions and run through November 12, 2026.

Over every period in the table, JVAL beat JEPI by a wide margin. Against VTV, the result is mixed. VTV costs less and came out ahead over five years and year-to-date, while JVAL edged ahead over one year. JPMorgan’s fact sheet shows JVAL’s five-year annualized NAV return at 12.82%, compared with 11.92% for the Russell 1000 Value Index. Morningstar gives the fund 4 stars among 1,055 Large Value funds.

Risks Retirees Should Weigh

Value stocks can trail growth stocks for years at a time. JVAL can also fall further in down markets. In 2022, JVAL returned -11.59% at NAV, while JEPI returned -3.54%. With a yield below 2%, JVAL can’t replace JEPI’s monthly payments, so a retiree using it for spending money would have to sell shares. The two funds also overlap. Microsoft was JEPI’s largest holding at 2.0%, so holding both adds less diversification than the names suggest.

Why So Few Investors Have Found It

JVAL had $989.71 million in assets on September 30, compared with $45.27 billion for JEPI. That gap exists even though JVAL launched first, on November 8, 2017, compared with May 20, 2020, for JEPI. Funds with high yields get more attention, and the word “factor” often sounds technical. Investors who want value exposure tend to choose giant, ultra-cheap index funds like VTV. Still, JVAL’s net assets rose from $732.96 million at the end of April to $833.50 million at the end of July.

Who JVAL Fits and Who Should Look Elsewhere

JVAL could suit investors at or near retirement who have long-term money and want low-cost value exposure that still includes large technology companies. It also fits JEPI owners who want a growth-oriented fund to sit next to their income fund. Investors who need monthly cash flow, the lowest possible fee, or a traditional deep-value portfolio have better options. Going forward, watch whether value keeps pace with growth, whether JVAL’s assets keep climbing, and how its tech weighting changes at each rebalance.

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