USMC vs. JEPQ
Compare and contrast key facts about Principal U.S. Mega-Cap ETF (USMC) and JPMorgan Nasdaq Equity Premium Income ETF (JEPQ).
USMC and JEPQ are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USMC is a passively managed fund by Principal that tracks the performance of the Nasdaq US Mega Cap Select Leaders Index. It was launched on Oct 12, 2017. JEPQ is an actively managed fund by JPMorgan Chase. It was launched on May 3, 2022.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: USMC or JEPQ.
Key characteristics
| USMC | JEPQ | |
|---|---|---|
| YTD Return | 5.69% | 6.52% |
| 1Y Return | 23.37% | 25.37% |
| Sharpe Ratio | 1.99 | 2.33 |
| Daily Std Dev | 11.84% | 10.95% |
| Max Drawdown | -29.97% | -16.82% |
| Current Drawdown | -4.15% | -3.83% |
Correlation
The correlation between USMC and JEPQ is 0.91, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
USMC vs. JEPQ - Performance Comparison
In the year-to-date period, USMC achieves a 5.69% return, which is significantly lower than JEPQ's 6.52% return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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USMC vs. JEPQ - Expense Ratio Comparison
USMC has a 0.12% expense ratio, which is lower than JEPQ's 0.35% expense ratio.
Risk-Adjusted Performance
USMC vs. JEPQ - Risk-Adjusted Performance 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.
Dividends
USMC vs. JEPQ - Dividend Comparison
USMC's dividend yield for the trailing twelve months is around 1.29%, less than JEPQ's 8.34% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|
USMC Principal U.S. Mega-Cap ETF | 1.29% | 1.35% | 1.78% | 1.53% | 1.55% | 2.04% | 2.28% | 0.24% |
JEPQ JPMorgan Nasdaq Equity Premium Income ETF | 8.34% | 10.02% | 9.44% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
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 -16.82%. Use the drawdown chart below to compare losses from any high point for USMC and JEPQ. For additional features, visit the drawdowns tool.
Volatility
USMC vs. JEPQ - Volatility Comparison
The current volatility for Principal U.S. Mega-Cap ETF (USMC) is 3.94%, while JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a volatility of 4.83%. 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.