USMC vs. JEPQ

Last updated Jun 23, 2026

USMC (Principal U.S. Mega-Cap ETF) and JEPQ (JPMorgan Nasdaq Equity Premium Income ETF) are both exchange-traded funds - USMC is a Large Cap Growth Equities fund tracking the Nasdaq US Mega Cap Select Leaders Index, while JEPQ is a Nasdaq-100 fund tracking the Nasdaq-100 Index. Both are passively managed. Over the past 3 years, USMC returned 20.97%/yr vs 20.80%/yr for JEPQ. Their correlation of 0.90 suggests significant overlap in exposure. USMC charges 0.12%/yr vs 0.35%/yr for JEPQ.

Performance

USMC vs. JEPQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Principal U.S. Mega-Cap ETF (USMC) 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, USMC achieves a 7.90% return, which is significantly lower than JEPQ's 10.59% return.

USMC

• 1D: -0.37%
• 1M: 1.06%
• YTD: 7.90%
• 6M: 7.36%
• 1Y: 23.29%
• 3Y*: 20.97%
• 5Y*: 15.07%
• 10Y*: —

JEPQ

• 1D: 0.07%
• 1M: 2.89%
• YTD: 10.59%
• 6M: 10.22%
• 1Y: 29.42%
• 3Y*: 20.80%
• 5Y*: —
• 10Y*: —

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

USMC vs. JEPQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
USMC Principal U.S. Mega-Cap ETF	7.90%	14.99%	29.82%	31.57%	-7.78%
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	10.59%	15.18%	24.85%	36.28%	-11.16%

Correlation

The correlation between USMC and JEPQ is 0.88, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.88
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (All Time) Calculated using the full available price history since May 4, 2022	0.90

The correlation between USMC and JEPQ has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

USMC vs. JEPQ - Sectors Allocation Comparison

Sectors	USMC	JEPQ
Technology	33.3%	58.9%
Financial Services	18.2%	0.3%
Communication Services	13.7%	13.9%
Consumer Defensive	8.5%	6.0%
Consumer Cyclical	8.3%	11.8%
Healthcare	8.1%	3.9%
Industrials	5.6%	2.8%
Energy	4.3%	0.3%
Basic Materials	-	0.9%
Real Estate	-	0.2%
Utilities	-	1.1%

Return for Risk

USMC vs. JEPQ — Risk / Return Rank

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

USMC

USMC Risk / Return Rank: 54
USMC Sharpe Ratio Rank: 59
USMC Sortino Ratio Rank: 58
USMC Omega Ratio Rank: 55
USMC Calmar Ratio Rank: 47
USMC Martin Ratio Rank: 51

JEPQ

JEPQ Risk / Return Rank: 75
JEPQ Sharpe Ratio Rank: 75
JEPQ Sortino Ratio Rank: 70
JEPQ Omega Ratio Rank: 80
JEPQ Calmar Ratio Rank: 69
JEPQ Martin Ratio Rank: 82

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.

USMC vs. JEPQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Principal U.S. Mega-Cap ETF (USMC) 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.

	USMC	JEPQ	Difference
Sharpe ratio: Return per unit of total volatility	1.91	2.30	-0.39
Sortino ratio: Return per unit of downside risk	2.69	3.05	-0.36
Omega ratio: Gain probability vs. loss probability	1.34	1.46	-0.12
Calmar ratio: Return relative to maximum drawdown	2.27	3.35	-1.08
Martin ratio: Return relative to average drawdown	8.58	15.94	-7.36

USMC vs. JEPQ - Sharpe Ratio Comparison

The current USMC Sharpe Ratio is 1.91, which is comparable to the JEPQ Sharpe Ratio of 2.30. The chart below compares the historical Sharpe Ratios of USMC 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

USMC vs. JEPQ - Drawdown Comparison

The maximum USMC drawdown since its inception was -29.97%, which is greater than JEPQ's maximum drawdown of -20.07%. Use the drawdown chart below to compare losses from any high point for USMC and JEPQ.

Drawdown Indicators

	USMC	JEPQ	Difference
Max Drawdown Largest peak-to-trough decline	-29.97%	-20.07%	-9.90%
Max Drawdown (1Y) Largest decline over 1 year	-10.30%	-8.82%	-1.48%
Max Drawdown (3Y) Largest decline over 3 years	-19.12%	-20.07%	+0.95%
Max Drawdown (5Y) Largest decline over 5 years	-24.09%	—	—
Current Drawdown Current decline from peak	-1.11%	0.00%	-1.11%
Average Drawdown Average peak-to-trough decline	-4.39%	-3.40%	-0.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.72%	1.85%	+0.87%

Volatility

USMC vs. JEPQ - Volatility Comparison

The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 4.20%, while JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a volatility of 5.68%. This indicates that USMC 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

	USMC	JEPQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.20%	5.68%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	9.35%	10.33%	-0.98%
Volatility (1Y) Calculated over the trailing 1-year period	12.26%	12.85%	-0.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.42%	16.75%	-0.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.24%	16.75%	+1.49%

USMC vs. JEPQ - Expense Ratio Comparison

USMC has a 0.12% expense ratio, which is lower than JEPQ's 0.35% expense ratio.

Dividends

USMC vs. JEPQ - Dividend Comparison

USMC's dividend yield for the trailing twelve months is around 0.75%, less than JEPQ's 9.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
JEPQ JPMorgan Nasdaq Equity Premium Income ETF	9.97%	10.53%	9.65%	10.03%	9.44%	0.00%	0.00%	0.00%	0.00%	0.00%
USMC Principal U.S. Mega-Cap ETF	0.75%	0.79%	1.04%	1.35%	1.78%	1.53%	1.55%	2.01%	2.28%	0.24%

Frequently Asked Questions

Can I hold both USMC and JEPQ in my portfolio?

USMC and JEPQ have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USMC or JEPQ?

JEPQ has higher volatility (5.68%) compared to USMC (4.20%). In terms of maximum drawdown, USMC dropped -29.97% vs JEPQ's -20.07%.

Which ETF is better, USMC or JEPQ?

On 3-year performance, USMC leads with 20.97% vs 20.80% for JEPQ. On fees, USMC is cheaper at 0.12% per year. On volatility, USMC has been the lower-risk option at 4.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USMC or JEPQ?

Over the 3-year period, USMC has performed better with a 20.97% return vs 20.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USMC or JEPQ?

USMC is cheaper with a 0.12% expense ratio, compared with 0.35% for JEPQ.

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

JEPQ has the higher dividend yield at 9.97%, compared with 0.75% for USMC.

What is the main difference between USMC and JEPQ?

USMC is categorized as Large Cap Growth Equities, while JEPQ is Nasdaq-100. USMC tracks Nasdaq US Mega Cap Select Leaders Index, while JEPQ tracks Nasdaq-100 Index. They also come from different issuers: Principal and JPMorgan. Their fees differ too: 0.12% for USMC and 0.35% for JEPQ.

Which has better risk-adjusted returns?

JEPQ currently has the higher Sharpe Ratio (2.30 vs 1.91), 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.