JPMorgan BetaBuilders U.S. Aggregate Bond ETF BBAG

JPMorgan BetaBuilders US Aggt Bond ETF holds a quantitatively derived Gold Morningstar Medalist Rating. The rating reflects that it has scored particularly well on factors Morningstar research associates with future outperformance relative to category peers.

People: 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 BetaBuilders $ HY Corp Bnd ETF (SecID: F00000X4SK).

Process: Above Average

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class which tracks the same index: iShares Core US Aggregate Bond ETF (SecID: FEUSA04ABS).

Performance (in US Dollar)

Over the past 12 months, JPMorgan BetaBuilders US Aggt Bond ETF share class returned 1.9%, mirroring its category index, the Bloomberg US Agg Bond TR USD Index (1.9%), but outperforming its Morningstar category peers (1.7%). Over five years, the fund returned -0.4% per year, underperforming the index (-0.3% per year) and mirroring its Morningstar Category average (-0.4% per year).

Price

JPMorgan BetaBuilders US Aggt Bond ETF's Prospectus Adjusted Expense Ratio is 0.03% per year. It places it in the cheapest quintile of the Morningstar US Fund Intermediate Core Bond Category, where the median fee is 0.46% per year. This cost positioning translates into a Medalist Rating Price Score of 2.3, 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 benchmark sweeps in fixed-rate, taxable, investment-grade US bonds with at least one year remaining until maturity. Qualifying bonds must have at least USD 300 million in outstanding face value, with higher minimums for some securitized fare. The index is market-value-weighted and rebalances each month, a sensible approach that efficiently captures the contours of the taxable, US investment-grade bond market.

Issuing activity of the US Treasury determines a large part of the portfolio. As Treasury issuance has grown, they’ve become a bigger part of the portfolio. Treasuries have grown from less than 35% of the portfolio 10 years ago to more than 45% recently, almost 20 percentage points more than the average category peer’s stake as of January 2026. A typical peer invests much of the difference in securitized fare and some high-yield bonds.

While the fund’s quality leanings mute credit risk, it still courts interest rate risk. For the past decade, its average effective maturity and average effective duration, measures of interest rate sensitivity, both tended to be longer than the category norm. Throughout the late 2010s and early 2020s, the fund’s average effective duration was usually around six months longer than the category average. However, as the US government has refinanced into shorter-term debt, the fund’s average effective duration has fallen faster than the norm and is now almost the same as its average category peer.

Reduced credit risk translates to a lower average coupon than peers who can invest in riskier bonds. The fund’s average coupon was 34 basis points below that of the category average as of January 2026. However, prevailing interest rates give even the safest portfolios appetizing yields. The fund’s Securities and Exchange Commission yield of 4.11% is more than double what it was in early 2022.

Note: This share class' Process Pillar rating and analysis are inherited from an analyst-covered passive share class which tracks the same index: iShares Core US Aggregate Bond ETF (SecID: FEUSA04ABS).

JPMorgan is reorganizing and refining its fixed-income indexing capabilities, setting a positive outlook. But these developments are at an early stage and have caused high turnover among portfolio manager ranks, meriting an Average People Pillar rating.

Mark Willauer recently stepped into the role of global head of systematic portfolio management and implementation. He is tasked with building out the systematic fixed-income team and broadening its portfolio optimization techniques. Adding specialized index-tracking infrastructure and personnel should improve the team’s ability to replicate index performance. Its team-based approach reduces key-person risk, and tying compensation to tracking targets aligns the team’s incentives with investors.

Despite carving out a new niche, the team still benefits from the significant resources afforded to J.P. Morgan’s fixed-income unit. Custom tools, a global trade desk, and a deep bench of sector analysts back up its indexing capabilities.

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 BetaBuilders $ HY Corp Bnd ETF (SecID: F00000X4SK).

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 August 2026.

Short-Term Performance

Over the past 12 months, JPMorgan BetaBuilders US Aggt Bond ETF share class returned 1.9%, mirroring its category index, the Bloomberg US Agg Bond TR USD Index (1.9%), but outperforming its Morningstar category peers (1.7%). Over the three-year period, it returned 4% per year, mirroring the index (4.1% per year) and its Morningstar category peers (4.1% per year).

Long-Term Performance

The fund's five-year annualized return of -0.4% fell short of the benchmark (-0.3% per year) but mirrored the Morningstar Category average (-0.4% per year).

JPMorgan BetaBuilders US Aggt Bond ETF's Prospectus Adjusted Expense Ratio is 0.03% per year. It places it in the cheapest quintile of the Morningstar US Fund Intermediate Core Bond Category, where the median fee is 0.46% per year. This cost positioning translates into a Medalist Rating Price Score of 2.3, 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.