PAPI vs. JEPI

Last updated Jun 10, 2026

PAPI (Parametric Equity Premium Income ETF) and JEPI (JPMorgan Equity Premium Income ETF) are both exchange-traded funds - PAPI is a Derivative Income fund actively managed by Morgan Stanley, while JEPI is a Dividend fund actively managed by JPMorgan. Both are actively managed. Over the past year, PAPI returned 12.84% vs 7.92% for JEPI. A 0.71 correlation means they provide meaningful diversification when combined. PAPI charges 0.29%/yr vs 0.35%/yr for JEPI.

Performance

PAPI vs. JEPI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Parametric Equity Premium Income ETF (PAPI) and JPMorgan Equity Premium Income ETF (JEPI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PAPI achieves a 6.65% return, which is significantly higher than JEPI's 0.86% return.

PAPI

• 1D: 0.60%
• 1M: 1.73%
• YTD: 6.65%
• 6M: 7.20%
• 1Y: 12.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

JEPI

• 1D: 0.81%
• 1M: 0.41%
• YTD: 0.86%
• 6M: 2.00%
• 1Y: 7.92%
• 3Y*: 9.09%
• 5Y*: 7.39%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

PAPI vs. JEPI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	6.65%	6.33%	8.90%	4.53%
JEPI JPMorgan Equity Premium Income ETF	0.86%	8.09%	12.57%	4.95%

Correlation

The correlation between PAPI and JEPI is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.70
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023	0.71

The correlation between PAPI and JEPI has been stable across timeframes, ranging from 0.70 to 0.71 - a consistent structural relationship.

PAPI vs. JEPI - Sectors Allocation Comparison

Sectors	PAPI	JEPI
Technology	12.5%	19.1%
Consumer Cyclical	12.1%	11.7%
Energy	11.6%	3.5%
Healthcare	10.7%	14.1%
Utilities	10.1%	6.2%
Consumer Defensive	10.1%	9.6%
Financial Services	9.9%	9.8%
Industrials	9.9%	13.8%
Basic Materials	7.8%	1.9%
Communication Services	5.4%	6.9%
Real Estate	-	3.5%

Return for Risk

PAPI vs. JEPI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PAPI

PAPI Risk / Return Rank: 39
PAPI Sharpe Ratio Rank: 39
PAPI Sortino Ratio Rank: 41
PAPI Omega Ratio Rank: 36
PAPI Calmar Ratio Rank: 42
PAPI Martin Ratio Rank: 36

JEPI

JEPI Risk / Return Rank: 30
JEPI Sharpe Ratio Rank: 31
JEPI Sortino Ratio Rank: 31
JEPI Omega Ratio Rank: 30
JEPI Calmar Ratio Rank: 27
JEPI Martin Ratio Rank: 29

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PAPI vs. JEPI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and JPMorgan Equity Premium Income ETF (JEPI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PAPI	JEPI	Difference
Sharpe ratio: Return per unit of total volatility	1.24	1.01	+0.23
Sortino ratio: Return per unit of downside risk	1.88	1.50	+0.38
Omega ratio: Gain probability vs. loss probability	1.22	1.19	+0.03
Calmar ratio: Return relative to maximum drawdown	1.88	1.19	+0.69
Martin ratio: Return relative to average drawdown	4.95	3.70	+1.25
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PAPI vs. JEPI - Sharpe Ratio Comparison

The current PAPI Sharpe Ratio is 1.24, which is comparable to the JEPI Sharpe Ratio of 1.01. The chart below compares the historical Sharpe Ratios of PAPI and JEPI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PAPI	JEPI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.24	1.01	+0.23
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.67	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.87	1.02	-0.14

Drawdowns

PAPI vs. JEPI - Drawdown Comparison

The maximum PAPI drawdown since its inception was -14.27%, roughly equal to the maximum JEPI drawdown of -13.71%. Use the drawdown chart below to compare losses from any high point for PAPI and JEPI.

Drawdown Indicators

	PAPI	JEPI	Difference
Max Drawdown Largest peak-to-trough decline	-14.27%	-13.71%	-0.56%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-6.68%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	—	-13.26%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-13.71%	—
Current Drawdown Current decline from peak	-4.30%	-4.16%	-0.14%
Average Drawdown Average peak-to-trough decline	-2.75%	-2.12%	-0.63%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.60%	2.14%	+0.46%

Volatility

PAPI vs. JEPI - Volatility Comparison

Parametric Equity Premium Income ETF (PAPI) has a higher volatility of 2.05% compared to JPMorgan Equity Premium Income ETF (JEPI) at 1.60%. This indicates that PAPI's price experiences larger fluctuations and is considered to be riskier than JEPI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAPI	JEPI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.05%	1.60%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	7.03%	6.14%	+0.89%
Volatility (1Y) Calculated over the trailing 1-year period	10.43%	7.91%	+2.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.74%	11.07%	+0.67%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.74%	10.79%	+0.95%

PAPI vs. JEPI - Expense Ratio Comparison

PAPI has a 0.29% expense ratio, which is lower than JEPI's 0.35% expense ratio.

Dividends

PAPI vs. JEPI - Dividend Comparison

PAPI's dividend yield for the trailing twelve months is around 7.56%, less than JEPI's 8.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
JEPI JPMorgan Equity Premium Income ETF	8.21%	8.25%	7.33%	8.40%	11.68%	6.59%	5.79%
PAPI Parametric Equity Premium Income ETF	7.56%	7.59%	7.07%	1.45%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PAPI and JEPI in my portfolio?

PAPI and JEPI have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PAPI or JEPI?

PAPI has higher volatility (2.05%) compared to JEPI (1.60%). In terms of maximum drawdown, PAPI dropped -14.27% vs JEPI's -13.71%.

Which ETF is better, PAPI or JEPI?

On 1-year performance, PAPI leads with 12.84% vs 7.92% for JEPI. On fees, PAPI is cheaper at 0.29% per year. On volatility, JEPI has been the lower-risk option at 1.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PAPI or JEPI?

Over the 1-year period, PAPI has performed better with a 12.84% return vs 7.92%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAPI or JEPI?

PAPI is cheaper with a 0.29% expense ratio, compared with 0.35% for JEPI.

Which ETF pays a higher dividend yield, PAPI or JEPI?

JEPI has the higher dividend yield at 8.21%, compared with 7.56% for PAPI.

What is the main difference between PAPI and JEPI?

PAPI is categorized as Derivative Income, while JEPI is Dividend. They also come from different issuers: Morgan Stanley and JPMorgan. Their fees differ too: 0.29% for PAPI and 0.35% for JEPI.

Which has better risk-adjusted returns?

PAPI currently has the higher Sharpe Ratio (1.24 vs 1.01), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.