PSEP vs. JEPQ

Last updated Aug 2, 2026

PSEP (Innovator U.S. Equity Power Buffer ETF - September) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) are both exchange-traded funds - PSEP is a Defined Outcome fund tracking the S&P 500 Index, while JEPQ is a Nasdaq-100 fund tracking the Nasdaq-100 Index. Both are passively managed. Over the past 3 years, PSEP returned 11.49%/yr vs 17.49%/yr for JEPQ. Their correlation of 0.86 means they have usually moved in the same direction. PSEP charges 0.79%/yr vs 0.35%/yr for JEPQ.

Performance

PSEP vs. JEPQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Innovator U.S. Equity Power Buffer ETF - September (PSEP) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with PSEP having a 6.20% return and JEPQ slightly lower at 6.05%.

PSEP

• 1D: 0.22%
• 1M: 0.76%
• 6M: 5.47%
• YTD: 6.20%
• 1Y: 12.56%
• 3Y*: 11.49%
• 5Y*: 9.47%
• 10Y*: —
• ALL TIME*: 9.63%

JEPQ

• 1D: 0.57%
• 1M: -1.92%
• 6M: 3.71%
• YTD: 6.05%
• 1Y: 19.59%
• 3Y*: 17.49%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 15.56%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	$439.89M	$417.31M	$422.49M
PSEP Innovator U.S. Equity Power Buffer ETF - September	$964.08K	$845.86K	$1.07M

PSEP vs. JEPQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
PSEP Innovator U.S. Equity Power Buffer ETF - September	6.20%	11.85%	12.44%	18.84%	1.15%
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	6.05%	15.18%	24.85%	36.28%	-11.16%

Correlation

The correlation between PSEP and JEPQ is 0.87, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.87
Correlation (3Y) Balances recent behavior with more history.	0.87
Correlation (All Time) Calculated using the full available price history since May 4, 2022	0.86

The correlation between PSEP and JEPQ has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.

PSEP vs. JEPQ - Sectors Allocation Comparison

Sectors	PSEP	JEPQ
Technology	37.9%	60.6%
Financial Services	11.7%	0.3%
Communication Services	10.0%	12.8%
Consumer Cyclical	9.6%	11.1%
Healthcare	9.1%	4.0%
Industrials	8.4%	3.0%
Consumer Defensive	4.6%	5.8%
Energy	3.0%	0.3%
Utilities	2.3%	1.0%
Real Estate	1.9%	0.2%
Basic Materials	1.7%	0.9%

Return for Risk

PSEP vs. JEPQ — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

PSEP

PSEP Risk / Return Rank: 88
PSEP Sharpe Ratio Rank: 87
PSEP Sortino Ratio Rank: 89
PSEP Omega Ratio Rank: 90
PSEP Calmar Ratio Rank: 80
PSEP Martin Ratio Rank: 91

JEPQ

JEPQ Risk / Return Rank: 55
JEPQ Sharpe Ratio Rank: 50
JEPQ Sortino Ratio Rank: 48
JEPQ Omega Ratio Rank: 52
JEPQ Calmar Ratio Rank: 58
JEPQ Martin Ratio Rank: 68

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

PSEP vs. JEPQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Innovator U.S. Equity Power Buffer ETF - September (PSEP) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	PSEP	JEPQ	Difference
Sharpe ratio: Return per unit of total volatility	2.11	1.22	+0.89
Sortino ratio: Return per unit of downside risk	3.11	1.72	+1.39
Omega ratio: Gain probability vs. loss probability	1.42	1.23	+0.19
Calmar ratio: Return relative to maximum drawdown	2.89	2.02	+0.87
Martin ratio: Return relative to average drawdown	15.22	8.30	+6.92

PSEP vs. JEPQ - Sharpe Ratio Comparison

The current PSEP Sharpe Ratio is 2.11, which is higher than the JEPQ Sharpe Ratio of 1.22. The chart below compares the historical Sharpe Ratios of PSEP 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.

Drawdowns

PSEP vs. JEPQ - Drawdown Comparison

The maximum PSEP drawdown since its inception was -17.90%, smaller than the maximum JEPQ drawdown of -20.07%. Use the drawdown chart below to compare losses from any high point for PSEP and JEPQ.

Drawdown Indicators

	PSEP	JEPQ	Difference
Max Drawdown Largest peak-to-trough decline	-17.90%	-20.07%	+2.17%
Max Drawdown (1Y) Largest decline over 1 year	-4.08%	-8.82%	+4.74%
Max Drawdown (3Y) Largest decline over 3 years	-9.92%	-20.07%	+10.15%
Max Drawdown (5Y) Largest decline over 5 years	-9.92%	—	—
Current Drawdown Current decline from peak	0.00%	-4.23%	+4.23%
Average Drawdown Average peak-to-trough decline	-1.53%	-3.38%	+1.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.77%	2.14%	-1.37%

Volatility

PSEP vs. JEPQ - Volatility Comparison

The current volatility for Innovator U.S. Equity Power Buffer ETF - September (PSEP) is 0.99%, while JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a volatility of 6.09%. This indicates that PSEP experiences smaller price fluctuations and is considered to be less risky than JEPQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSEP	JEPQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.99%	6.09%	-5.10%
Volatility (6M) Calculated over the trailing 6-month period	4.24%	12.15%	-7.91%
Volatility (1Y) Calculated over the trailing 1-year period	5.59%	14.65%	-9.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.63%	16.90%	-8.27%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.02%	16.90%	-6.88%

PSEP vs. JEPQ - Expense Ratio Comparison

PSEP has a 0.79% expense ratio, which is higher than JEPQ's 0.35% expense ratio.

Dividends

PSEP vs. JEPQ - Dividend Comparison

PSEP has not paid dividends to shareholders, while JEPQ's dividend yield for the trailing twelve months is around 10.75%.

Position	TTM	2025	2024	2023	2022
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	9.99%	10.53%	9.65%	10.03%	9.44%
PSEP Innovator U.S. Equity Power Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSEP and JEPQ in my portfolio?

PSEP and JEPQ have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSEP or JEPQ?

JEPQ has higher volatility (6.09%) compared to PSEP (0.99%). In terms of maximum drawdown, PSEP dropped -17.90% vs JEPQ's -20.07%.

Which ETF is better, PSEP or JEPQ?

On 3-year performance, JEPQ leads with 17.49% vs 11.49% for PSEP. On fees, JEPQ is cheaper at 0.35% per year. On volatility, PSEP has been the lower-risk option at 0.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSEP or JEPQ?

Over the 3-year period, JEPQ has performed better with a 17.49% return vs 11.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSEP or JEPQ?

JEPQ is cheaper with a 0.35% expense ratio, compared with 0.79% for PSEP.

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

JEPQ has the higher dividend yield at 9.99%, compared with 0.00% for PSEP.

What is the main difference between PSEP and JEPQ?

PSEP is categorized as Defined Outcome, while JEPQ is Nasdaq-100. PSEP tracks S&P 500 Index, while JEPQ tracks Nasdaq-100 Index. They also come from different issuers: Innovator and JPMorgan. Their fees differ too: 0.79% for PSEP and 0.35% for JEPQ.

Which has better risk-adjusted returns?

PSEP currently has the higher Sharpe Ratio (2.11 vs 1.22), 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.