Jpmorgan Betabuilders U.S. Treasury Bond 1-3 Year ETF BBSB

JPMorgan BetaBuilders U.S. TrsBd1-3YrETF 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 accurately represents the US Fund Short Government category's opportunity set. Passive US Fund Short 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. TrsBd1-3YrETF share class returned 3.1%, matching its category index, the Bloomberg US Govt 1-3 Yr TR USD Index (3.1%), but underperforming its Morningstar category peers (3.6%).

Price

JPMorgan BetaBuilders U.S. TrsBd1-3YrETF's Prospectus Adjusted Expense Ratio is 0.04% per year. It places it in the cheapest quintile of the Morningstar US Fund Short Government Category, where the median fee is 0.49% per year. This cost positioning translates into a Medalist Rating Price Score of 1.99, 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. TrsBd1-3YrETF 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 accurately represents the Short 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 Short 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 1-3 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 one year and less than or equal to three 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).

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 U.S. TrsBd1-3YrETF share class returned 3.1%, matching its category index, the Bloomberg US Govt 1-3 Yr TR USD Index (3.1%), but underperforming its Morningstar category peers (3.6%). Over the three-year period, it returned 4% per year, mirroring the index (4% per year) while outperforming its Morningstar category peers (3.9% per year).

JPMorgan BetaBuilders U.S. TrsBd1-3YrETF's Prospectus Adjusted Expense Ratio is 0.04% per year. It places it in the cheapest quintile of the Morningstar US Fund Short Government Category, where the median fee is 0.49% per year. This cost positioning translates into a Medalist Rating Price Score of 1.99, 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.