An incline in its Process Pillar rating is the primary driver of JPMorgan International Growth ETF's upgrade to a Morningstar Quantitative Rating of Bronze from Neutral. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.
The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in liquidity exposure and an overweight in quality exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And a high quality exposure is rooted in holding stocks that are consistently profitable, growing, and have solid balance sheets. The strategy belongs to a strong asset-management firm that earns an Above Average Parent Pillar rating. The firm, for example, has had a high lineup success ratio and overall low fees. Finally, this management team has a wealth of experience, but still gets an Average People Pillar rating.