JPMorgan BetaBuilders Japan ETF’s strong process and parent firm support this strategy's Morningstar Quantitative Rating of Gold. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.
The strategy's effective investment philosophy supports a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in volatility exposure and quality exposure compared with category peers. Low volatility exposure is attributed to stocks with a lower standard deviation of returns. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy has a solid parent that earns an Above Average Parent Pillar rating. This firm has had a favorable lineup success ratio and overall affordable fees. Finally, the team managing the passive strategy earns the strategy an Average People Pillar rating.