PAPI vs. JEPQ

Last updated Jun 4, 2026

PAPI (Parametric Equity Premium Income ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) are both exchange-traded funds - PAPI is a Derivative Income fund actively managed by Morgan Stanley, while JEPQ is a Nasdaq-100 fund tracking the Nasdaq-100 Index. PAPI is actively managed, while JEPQ is passively managed. Over the past year, PAPI returned 12.39% vs 29.00% for JEPQ. At a 0.22 correlation, their price movements are largely independent. PAPI charges 0.29%/yr vs 0.35%/yr for JEPQ.

Performance

PAPI vs. JEPQ - Performance Comparison

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

Returns By Period

In the year-to-date period, PAPI achieves a 5.81% return, which is significantly lower than JEPQ's 9.54% return.

PAPI

• 1D: -0.26%
• 1M: 0.28%
• YTD: 5.81%
• 6M: 5.78%
• 1Y: 12.39%
• 3Y*: —
• 5Y*: —
• 10Y*: —

JEPQ

• 1D: -0.10%
• 1M: 4.31%
• YTD: 9.54%
• 6M: 9.75%
• 1Y: 29.00%
• 3Y*: 20.92%
• 5Y*: —
• 10Y*: —

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

PAPI vs. JEPQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
PAPI Parametric Equity Premium Income ETF	5.81%	6.33%	8.90%	5.36%
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	9.54%	15.18%	24.85%	9.26%

Correlation

The correlation between PAPI and JEPQ is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (All Time) Calculated using the full available price history since Oct 20, 2023	0.22

PAPI vs. JEPQ - Sectors Allocation Comparison

Sectors	PAPI	JEPQ
Technology	12.5%	54.0%
Consumer Cyclical	12.1%	12.8%
Energy	11.6%	0.4%
Healthcare	10.7%	4.4%
Utilities	10.1%	1.3%
Consumer Defensive	10.1%	7.1%
Financial Services	9.9%	0.4%
Industrials	9.9%	3.1%
Basic Materials	7.8%	1.0%
Communication Services	5.4%	15.4%
Real Estate	-	0.2%

Return for Risk

PAPI vs. JEPQ — Risk / Return Rank

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

PAPI

PAPI Risk / Return Rank: 33
PAPI Sharpe Ratio Rank: 32
PAPI Sortino Ratio Rank: 34
PAPI Omega Ratio Rank: 30
PAPI Calmar Ratio Rank: 37
PAPI Martin Ratio Rank: 33

JEPQ

JEPQ Risk / Return Rank: 74
JEPQ Sharpe Ratio Rank: 74
JEPQ Sortino Ratio Rank: 71
JEPQ Omega Ratio Rank: 80
JEPQ Calmar Ratio Rank: 65
JEPQ Martin Ratio Rank: 80

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. JEPQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Parametric Equity Premium Income ETF (PAPI) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). 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	JEPQ	Difference
Sharpe ratio: Return per unit of total volatility	1.19	2.49	-1.29
Sortino ratio: Return per unit of downside risk	1.82	3.29	-1.47
Omega ratio: Gain probability vs. loss probability	1.21	1.49	-0.28
Calmar ratio: Return relative to maximum drawdown	1.81	3.31	-1.49
Martin ratio: Return relative to average drawdown	4.90	16.22	-11.32
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. JEPQ - Sharpe Ratio Comparison

The current PAPI Sharpe Ratio is 1.19, which is lower than the JEPQ Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of PAPI and JEPQ, 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	JEPQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.19	2.49	-1.29
Sharpe Ratio (All Time) Calculated using the full available price history	0.88	1.00	-0.13

Drawdowns

PAPI vs. JEPQ - Drawdown Comparison

The maximum PAPI drawdown since its inception was -14.27%, smaller than the maximum JEPQ drawdown of -20.07%. Use the drawdown chart below to compare losses from any high point for PAPI and JEPQ.

Drawdown Indicators

	PAPI	JEPQ	Difference
Max Drawdown Largest peak-to-trough decline	-14.27%	-20.07%	+5.80%
Max Drawdown (1Y) Largest decline over 1 year	-6.86%	-8.82%	+1.96%
Max Drawdown (3Y) Largest decline over 3 years	—	-20.07%	—
Current Drawdown Current decline from peak	-5.06%	-0.10%	-4.96%
Average Drawdown Average peak-to-trough decline	-2.73%	-3.42%	+0.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	1.79%	+0.74%

Volatility

PAPI vs. JEPQ - Volatility Comparison

Parametric Equity Premium Income ETF (PAPI) has a higher volatility of 2.23% compared to JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) at 1.26%. This indicates that PAPI's price experiences larger fluctuations and is considered to be riskier than JEPQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PAPI	JEPQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.23%	1.26%	+0.97%
Volatility (6M) Calculated over the trailing 6-month period	7.00%	9.07%	-2.07%
Volatility (1Y) Calculated over the trailing 1-year period	10.55%	11.73%	-1.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.76%	16.61%	-4.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.76%	16.61%	-4.85%

PAPI vs. JEPQ - Expense Ratio Comparison

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

Dividends

PAPI vs. JEPQ - Dividend Comparison

PAPI's dividend yield for the trailing twelve months is around 7.62%, less than JEPQ's 10.07% yield.

Position	TTM	2025	2024	2023	2022
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	10.07%	10.53%	9.65%	10.03%	9.44%
PAPI Parametric Equity Premium Income ETF	7.62%	7.59%	7.07%	1.45%	0.00%

Frequently Asked Questions

Can I hold both PAPI and JEPQ in my portfolio?

PAPI and JEPQ have a correlation of 0.18, 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 JEPQ?

PAPI has higher volatility (2.23%) compared to JEPQ (1.26%). In terms of maximum drawdown, PAPI dropped -14.27% vs JEPQ's -20.07%.

Which ETF is better, PAPI or JEPQ?

On 1-year performance, JEPQ leads with 29.00% vs 12.39% for PAPI. On fees, PAPI is cheaper at 0.29% per year. On volatility, JEPQ has been the lower-risk option at 1.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PAPI or JEPQ?

Over the 1-year period, JEPQ has performed better with a 29.00% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PAPI or JEPQ?

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

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

JEPQ has the higher dividend yield at 10.07%, compared with 7.62% for PAPI.

What is the main difference between PAPI and JEPQ?

PAPI is categorized as Derivative Income, while JEPQ is Nasdaq-100. They also come from different issuers: Morgan Stanley and JPMorgan. Their fees differ too: 0.29% for PAPI and 0.35% for JEPQ.

Which has better risk-adjusted returns?

JEPQ currently has the higher Sharpe Ratio (2.49 vs 1.19), 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.