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 US Eq ETF (SecID: F00000TX9Q).

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 29.7%, underperforming its category index, the Morningstar US Large-Mid TR USD Index (30.9%), but outperforming its Morningstar category peers (27.4%). Across the 10-year period, the fund returned 14% per year, underperforming the index (15.1% per year) and ahead of its Morningstar Category average (13% 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 0.67% per year. This cost positioning translates into a Medalist Rating Price Score of -1.63, 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).

JPMorgan’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 JPMorgan’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 JPMorgan’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 comprises daily portfolio checks that help catch any problems before they emerge. The second prong looks at bigger violations and long-term tracking improvements. Aligning managers' compensation with index tracking performance further ensures that their interests mesh with 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 US Eq ETF (SecID: F00000TX9Q).

A strong choice for active management. Building on a solid foundation, J.P. Morgan Asset Management maintains an Above Average Parent rating.

J.P. Morgan is a well-resourced, diligent, and responsible steward of client assets. Investment teams are seasoned and stalwart, especially in equity and fixed income, the latter of which has successfully undergone substantial transformation in recent years. The firm offers competitive compensation that is aligned with fundholders and shows strong retention at senior levels of the organization. It demonstrates a culture of constant innovation and willingness to evolve. For example, J.P. Morgan recently expanded its investment committee process through which senior leaders review various teams and strategies, and it continues to develop proprietary portfolio management and risk oversight tools. Some funds still face high fee hurdles, but the firm has generally lowered expenses as it has grown.

The firm isn't without its complications. J.P. Morgan's product offering is extensive, and some areas need improvement. For instance, its multi-asset business has faced some challenges as a result of complex investment processes. The firm continues to build out its footprint in China, but its efforts there remain unproven. Although not every strategy is the best in its class, J.P. Morgan remains earnest in the pursuit of excellence, and investors are well-served.

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 April 2026.

Short-Term Performance

Over the past 12 months, JPMorgan Equity Index C share class returned 29.7%, underperforming its category index, the Morningstar US Large-Mid TR USD Index (30.9%), but outperforming its Morningstar category peers (27.4%). Over the three-year period, it returned 20.4% per year, lagging the index (21.9% per year) while outperforming its Morningstar category peers (18.7% per year).

Long-Term Performance

The fund's five-year annualized return of 12% fell short of the benchmark (12.5% per year) but exceeded the Morningstar Category average (10.8% per year). Across the 10-year period, the fund returned 14% per year, below the index (15.1% per year) but ahead of its Morningstar Category average (13% 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 0.67% per year. This cost positioning translates into a Medalist Rating Price Score of -1.63, 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.