Jpmorgan Betabuilders U.S. Treasury Bond 3-10 Year ETF BBIB

JPMorgan BetaBuilders U.S.TrsBd3-10YrETF 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: 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: Average

The fund has a moderately concentrated portfolio and largely represents the US Fund Intermediate Government category's opportunity set. Passive US Fund Intermediate Government 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 U.S.TrsBd3-10YrETF share class returned 2.4%, underperforming both its category index, the Bloomberg US Government TR USD Index (2.7%), and its Morningstar category peers (3%).

Price

JPMorgan BetaBuilders U.S.TrsBd3-10YrETF's Prospectus Adjusted Expense Ratio is 0.04% per year. It places it in the cheapest quintile of the Morningstar US Fund Intermediate Government Category, where the median fee is 0.41% per year. This cost positioning translates into a Medalist Rating Price Score of 1.9, 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 U.S.TrsBd3-10YrETF 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 fixed-income 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. To maintain consistency and account for all available data, raw scores are averaged across funds tracking the same benchmark.

Representativeness

The fund largely represents the Intermediate Government category's opportunity set.

Diversification

The fund has a moderately concentrated portfolio, either based on its top-holdings exposure or its number of bond holdings relative to the category average.

Active versus Passive

Passive Intermediate Government 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 results that closely correspond, before fees and expenses, to the performance of the ICE U.S. Treasury 3-10 Year Bond Index. The fund seeks investment results that closely correspond, before fees and expenses, to the performance of the underlying index, which measures the performance of U.S. dollar-denominated, fixed rate securities with minimum term to maturity greater than three years and less than or equal to ten years. The fund will invest at least 80% of its assets in securities included in the underlying index.

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 June 2026.

Short-Term Performance

Over the past 12 months, JPMorgan BetaBuilders U.S.TrsBd3-10YrETF share class returned 2.4%, underperforming its category index, the Bloomberg US Government TR USD Index (2.7%), and its Morningstar category peers (3%). Over the three-year period, it returned 3.9% per year, outperforming both the index (1.8% per year) and its Morningstar category peers (2.2% per year).

JPMorgan BetaBuilders U.S.TrsBd3-10YrETF's Prospectus Adjusted Expense Ratio is 0.04% per year. It places it in the cheapest quintile of the Morningstar US Fund Intermediate Government Category, where the median fee is 0.41% per year. This cost positioning translates into a Medalist Rating Price Score of 1.9, 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.