JPMorgan Diversified Return U.S. Small Cap Equity ETF JPSE

JPMorgan Divers Ret US Small Cap Eq ETF holds a quantitatively derived Bronze Morningstar Medalist Rating. The rating reflects that it has scored better than the norm on factors Morningstar research associates with future outperformance relative to category peers.

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: Average

The Process rating is driven by the fund's gross-of-fee information ratio, a measure of risk-adjusted excess return. Over one, three, and five years, it ranks slightly above peers, below peers, and slightly above peers, respectively. The parent firm's risk-adjusted success ratio, which measures the share of its equity funds that outperform peers, ranks slightly above peer firms over 10 years.

Performance (in US Dollar)

Over the past 12 months, JPMorgan Divers Ret US Small Cap Eq ETF share class returned 39.6%, outperforming both its category index, the Morningstar US Small TR USD Index (31.8%), and its Morningstar category peers (35.1%). Over five years, the fund returned 7.7% per year, ahead of its benchmark (5.7% per year) and its Morningstar Category average (6.3% per year).

Price

JPMorgan Divers Ret US Small Cap Eq ETF's Prospectus Adjusted Expense Ratio is 0.29% per year. It places it in the cheapest quintile of the Morningstar US Fund Small Blend Category, where the median fee is 0.93% per year. This cost positioning translates into a Medalist Rating Price Score of 1.95, 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.

JPMorgan Divers Ret US Small Cap Eq ETF is assigned an Average Process rating. Our evaluation of a strategies' Process Pillar focuses on the effectiveness of its investment approach. A well-structured process should be clearly defined and consistently applied. This assessment incorporates quantitative measures of risk-adjusted returns, success ratio, and portfolio stability to gauge the fund's ability to execute its strategy effectively over time.

Fund Information Ratio

We assess the strategy's ability to generate risk-adjusted excess returns relative to its Morningstar Category Index using the gross-of-fee information ratio. This is evaluated over one-, three-, and five-year periods where available. Here, the category-relative information ratio ranks slightly above peers over one year, below peers over three years, and slightly above peers over five years.

Brand/Asset Class Risk-Adjusted Success Ratio

The risk-adjusted success ratio gauges a firm's ability to deliver competitive results within each major asset class. It reflects the share of the firm's funds that both survived and outperformed the peer average over trailing three-, five-, and 10-year periods, where available. Based on the average performance of the group's equity fund offerings, the success ratio ranks slightly above peers, relative to the other firms in the strategy's asset class over three years, slightly below peers over five years, and slightly above peers over 10 years.

Portfolio Characteristics

Assessment of the fund's portfolio characteristics helps determine whether a fund is consistent in its investment approach. The standard deviation of size and style scores over the past three years is used to evaluate how stable the portfolio remains relative to its Morningstar category peers. Where the size and style variability metric breaches the upper tolerance limit, a small deduction is applied to the Process rating, reflecting greater variability. No penalty is applied to the strategy.

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 Divers Ret US Small Cap Eq ETF share class returned 39.6%, outperforming its category index, the Morningstar US Small TR USD Index (31.8%), and its Morningstar category peers (35.1%). Over the three-year period, it returned 15.9% per year, mirroring the index (15.9% per year) while outperforming its Morningstar category peers (15.4% per year).

Long-Term Performance

Over five years, the fund returned 7.7% per year, ahead of the index (5.7% per year) and ahead of peers (6.3% per year).

JPMorgan Divers Ret US Small Cap Eq ETF's Prospectus Adjusted Expense Ratio is 0.29% per year. It places it in the cheapest quintile of the Morningstar US Fund Small Blend Category, where the median fee is 0.93% per year. This cost positioning translates into a Medalist Rating Price Score of 1.95, 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.