JPMorgan Equity Index Fund Class C OEICX

JPMorgan Equity Index C holds a quantitatively derived Neutral Morningstar Medalist Rating. The rating suggests the model does not express a clear expectation of outperformance or underperformance relative to peers over a full market cycle.

People: Above Average

Note: This share class' People Pillar rating and analysis are inherited from an analyst-covered share class under the same Strategy Provider Company (rolled up to Branding Name) and Morningstar Category Broad Group: JPMorgan Diversified Return Intl Eq ETF (SecID: F00000SSEA).

Process: High

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class which tracks the same index: Vanguard S&P 500 ETF (SecID: F00000J3JR).

Performance (in US Dollar)

Over the past 12 months, JPMorgan Equity Index C share class returned 14.5%, underperforming its category index, the Morningstar US LM Cap Mkt TR USD Index (15.6%), but outperforming its Morningstar category peers (13.3%). Over 10 years, the fund returned 14.1% per year, underperforming the index (15.2% per year) and ahead of its Morningstar Category average (13.1% per year).

Price

JPMorgan Equity Index C's Prospectus Adjusted Expense Ratio is 1.12% per year. It places it in the most expensive quintile of the Morningstar US Fund Large Blend Category, where the median fee is 0.66% per year. This cost positioning translates into a Medalist Rating Price Score of -1.65, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.

The S&P 500 selects 500 of the largest US companies that pass its liquidity and profitability screens. Companies are only eligible for inclusion when the sum of their GAAP earnings over the past four quarters is positive, as well as the most recent quarter. Screening for profitability imparts a slight quality tilt to the portfolio. There have been instances where the profitability screen prevented otherwise qualified companies from index inclusion. Most notably, Tesla was first added to the index in December 2020, despite passing the liquidity and market-cap thresholds in January 2013. Once the index committee selects stocks, it weights them by market cap.

Market-cap weighting is a sensible approach for the US stock market. Highly traded stocks usually reflect new information quickly, and market-cap weighting requires minimal trading costs, which can detract from returns. It follows the wisdom of crowds and takes the guesswork out of stock selection. The US stock market has historically produced solid long-term gains, and owning about 80% of the market has allowed investors to capitalize on those gains. Should strong market performance continue, the fund is well-positioned to reap those rewards.

Market-cap weighting tilts the index toward the largest and most established names. Companies with wide or narrow Morningstar Economic Moat Ratings dominate the portfolio, showcasing the strategy’s durability. Holding 500 stocks reduces the opportunity cost of missing out on strong performers, too. When a portfolio owns a greater chunk of the US stock universe, it has a better chance of capturing gains from companies that end up driving returns. Concentrated active funds are more likely to miss out if those stocks are excluded from their narrow portfolios.

Large allocations to the biggest names in the US stock market could present concentration risk, but the index simply represents the market. While higher concentration may be a concern for investors, there isn’t a clear relationship between index performance and market concentration. In addition, the largest companies, such as Apple and Microsoft, often have diversified business lines, so they don’t rely on a single product, service, or market to determine company success.

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class which tracks the same index: Vanguard S&P 500 ETF (SecID: F00000J3JR).

J.P. Morgan’s quantitative solutions team has made some positive steps over the past few years. The team has remained stable, promoted from within, and continued to build on its existing capabilities, earning it a People Pillar rating of Above Average.

This relatively small team of about 20 individuals taps into J.P. Morgan’s global infrastructure. The firm’s global trading desks, capital markets experts, and technology staff all play a role in helping managers track each fund’s target index. The team also leverages J.P. Morgan’s Spectrum platform, an all-in-one portfolio-management platform that integrates various tools, including risk modeling, order management, and compliance. These resources and capabilities can add incremental value around the edges. For example, managers may ignore index rules within allowable limits and trade around corporate actions when it is cost-effective.

Risk management follows a comprehensive two-pronged approach. The first prong consists of daily portfolio checks that help catch any problems before they emerge. The second looks at bigger violations and long-term tracking improvements. Aligning managers' compensation with index-tracking performance further ensures that their interests mesh with those of investors.

Note: This share class' People Pillar rating and analysis are inherited from an analyst-covered share class under the same Strategy Provider Company (rolled up to Branding Name) and Morningstar Category Broad Group: JPMorgan Diversified Return Intl Eq ETF (SecID: F00000SSEA).

J.P. Morgan continues to build a track record of strong stewardship, supporting a Parent rating upgrade to High from Above Average.

With more than USD 4 trillion in assets under management (including USD 1.3 trillion in money market funds) and a broad reach, J.P. Morgan is among the largest active asset managers in the US, Europe, and Asia. Although some multi-asset offerings have struggled over the past five years, prompting new leadership to make changes to investment teams, its equity and fixed-income teams boast long-tenured portfolio managers who practice repeatable investment processes that have generally produced strong long-term results. Most of its funds are core building blocks with long lifetimes, though its lineup around the world also includes more-specialized options: Two options-based equity-income exchange-traded funds, launched in 2020 and 2022, are now among the firm’s largest. J.P. Morgan has been an early mover in offering active ETFs, having converted 12 of its open-end mutual funds to the structure and launching others. It isn’t always at the forefront of emerging trends. While it has filed registration statements with the Securities and Exchange Commission for an interval fund and an ETF investing in private markets, it hasn’t yet introduced such an option for all investors, whether on its own or in partnership with another asset manager, unlike some of its closest competitors.

To support the firm’s diverse investment offerings, J.P. Morgan has invested heavily in both portfolio management tools and its client organization. Over the past 10 years, the firm has developed robust proprietary technology with advanced analytics and broad buy-in from investment analysts, portfolio traders, and portfolio managers, all of whom have easy access to the platform. The firm also stands apart for its demonstrated commitment to clients. In the early 2000s, J.P. Morgan began pivoting its engagement with financial advisors to adopt a more consultative approach, supported by its sought-after Guide to the Markets research series that focuses on investor education, not product pitches. This perspective can help clients stay the course, supporting positive investor outcomes.

Incentives reinforce alignment with fundholders. Beginning more than 10 years ago, investment team compensation is tied to three-, five-, and 10-year performance, and portfolio managers must invest at least half of their deferred compensation in J.P. Morgan strategies. Many firms encourage portfolio managers to invest alongside fundholders, but J.P. Morgan goes a step further in requiring client-facing individuals to invest substantial portions of their incentive compensation in the funds.

Although some funds still face high cost hurdles, more than half of share classes charge competitive fees relative to peers.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, JPMorgan (Branding Name ID: BN0000095S), is covered by Morningstar Manager Research.

Performance is evaluated in US Dollar, measured to the end of September 2026.

Short-Term Performance

Over the past 12 months, JPMorgan Equity Index C share class returned 14.5%, underperforming its category index, the Morningstar US LM Cap Mkt TR USD Index (15.6%), but outperforming its Morningstar category peers (13.3%). Over the three-year period, it returned 21.6% per year, lagging the index (23% per year) while outperforming its Morningstar category peers (19.8% per year).

Long-Term Performance

The fund's five-year annualized return of 12.6% fell short of the benchmark (13.3% per year) but exceeded the Morningstar Category average (11.4% per year). Across 10 years, the fund returned 14.1% per year, below the index (15.2% per year) but ahead of its Morningstar Category average (13.1% per year).

JPMorgan Equity Index C's Prospectus Adjusted Expense Ratio is 1.12% per year. It places it in the most expensive quintile of the Morningstar US Fund Large Blend Category, where the median fee is 0.66% per year. This cost positioning translates into a Medalist Rating Price Score of -1.65, which reflects its relative price positioning within the category. The Price Score ranges from -2.50 (most expensive) to +2.50 (cheapest), with higher scores indicating better cost competitiveness.