JPMorgan BetaBuilders Europe ETF BBEU

JPMorgan BetaBuilders Europe 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 fund is fairly diversified and accurately represents the US Fund Europe Stock category's opportunity set. Available data suggests that the fund should be able to efficiently track its benchmark index. Passive US Fund Europe Stock funds have historically turned in average performance compared with their active category peers. They have not shown a significant edge or disadvantage compared with active funds in this area of the market.

Performance (in US Dollar)

Over the past 12 months, JPMorgan BetaBuilders Europe ETF share class returned 23.1%, outperforming both its category index, the MSCI Europe NR USD Index (22.2%), and its Morningstar category peers (22.5%). Over five years, the fund returned 9.8% per year, ahead of its benchmark (9.3% per year) and its Morningstar Category average (8.5% per year).

Price

JPMorgan BetaBuilders Europe ETF's Prospectus Adjusted Expense Ratio is 0.09% per year. It places it in the cheapest quintile of the Morningstar US Fund Europe Stock Category, where the median fee is 0.66% per year. This cost positioning translates into a Medalist Rating Price Score of 1.88, 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 BetaBuilders Europe ETF is assigned an Average Process rating. Morningstar's algorithmically assigned Passive Process ratings are first derived by comparing the historical efficacy of passive investments relative to active peers. For equity funds, this category-level score is then adjusted based on the fund's characteristics, including its ability to diversify risk and represent the category's opportunity set. Funds whose benchmark index may be difficult to track are penalized, as this can affect tracking performance. For consistency, the model averages the algorithmic Process scores across all funds tracking the same benchmark. Each fund in that group receives the same final Process score, ensuring the rating reflects all available data.

Representativeness

The fund accurately represents the Europe Stock category's opportunity set.

Diversification

The fund is fairly diversified, either based on its top-holdings exposure or its number of equity positions relative to the category average.

Tracking Approach

Available data suggests that the fund should be able to efficiently track its benchmark index.

Active versus Passive

Passive Europe Stock funds have historically turned in average performance compared with their active category peers. They have not shown a significant edge or disadvantage compared with active funds in this area of the market.

Investment Strategy

The investment strategy as stated in the prospectus is: the investment seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Europe Target Market Exposure IndexSM. The fund will invest at least 80% of its assets in securities included in the underlying index. The underlying index is a free float adjusted market capitalization-weighted index which consists of equity securities from developed European countries or regions, including: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

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 BetaBuilders Europe ETF share class returned 23.1%, outperforming its category index, the MSCI Europe NR USD Index (22.2%), and its Morningstar category peers (22.5%). Over the three-year period, it returned 15.1% per year, outperforming both the index (14.3% per year) and its Morningstar category peers (14.5% per year).

Long-Term Performance

Over five years, the fund returned 9.8% per year, ahead of the index (9.3% per year) and ahead of peers (8.5% per year).

JPMorgan BetaBuilders Europe ETF's Prospectus Adjusted Expense Ratio is 0.09% per year. It places it in the cheapest quintile of the Morningstar US Fund Europe Stock Category, where the median fee is 0.66% per year. This cost positioning translates into a Medalist Rating Price Score of 1.88, 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.