Skip to Content

JPMorgan BetaBuilders US Equity ETF BBUS

Medalist Rating as of | See JPMorgan Investment Hub
unlocked

Morningstar’s Analysis BBUS

Medalist rating as of .

JPMorgan BetaBuilders US Equity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver.

Our research team assigns Silver ratings to strategies that they have a high conviction will outperform the relevant index, or most peers, over a market cycle on a risk-adjusted basis.

JPMorgan BetaBuilders US Equity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver.

null Morningstar Manager Research

Morningstar Manager Research

Summary

The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.

The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Rated on Published on

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term.

null Morningstar Manager Research

Morningstar Manager Research

Process

Above Average

JPMorgan BetaBuilders US Equity ETF earns an Above Average Process Pillar rating.

The most notable contributor to the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons.

The investment strategy as stated in the fund's prospectus is:

The investment seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Target Market Exposure IndexSM. The underlying index is a free float adjusted market capitalization weighted index which consists of equity securities primarily traded in the United States. The underlying index targets 85% of those stocks by market capitalization, and and primarily includes large- and mid-cap companies. The fund will invest at least 80% of its assets in securities included in the underlying index.

The portfolio is overweight in technology by 3.3 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared to category peers are industrials and healthcare; however, the allocations are similar to the category. The portfolio is positioned across 575 holdings and is less top-heavy than peers. Specifically, 31.1% of the fund’s assets are concentrated within the top 10 fund holdings, as opposed to the category average's 48.8%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 3% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Rated on Published on

JPMorgan’s team is comparable to peers, resulting in an Average People Pillar rating.

null Morningstar Manager Research

Morningstar Manager Research

People

Average

There are four managers listed on the fund: Michael Loeffler, Nicholas D’Eramo, Oliver Furby, Alex Hamilton. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of eight strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.

Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Rated on Published on

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.

Associate Director Emory Zink

Emory Zink

Associate Director

Parent

Above Average

As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various global cohorts and diverse asset classes, the firm has more tightly integrated its capabilities in recent years, notably through the development of proprietary analytical and risk systems. Investment teams are robustly staffed and helmed by seasoned contributors. The firm’s strategies tend to produce reliable portfolios, and several flagship offerings are Morningstar Medalists. Manager incentives align with fundholders'; compensation reflects longer-term performance factors, and portfolio managers invest in the firm’s strategies as part of their compensation plans.

The firm’s funds tend to be well-priced, but they aren’t as competitive as many highly regarded peers of similar scale. Recent product launches include thematic and single-country strategies, both of which carry the potential for volatile performance and flows, along with misuse by investors. The firm remains intrepid when it comes to developing an environmental, social, and governance-focused framework and continues to move into other areas such as direct indexing through its 55iP acquisition and China through its joint venture, but these complicated initiatives take time to assess any real and lasting effect.

Rated on Published on

This share class has a strong short-term track record.

null Morningstar Manager Research

Morningstar Manager Research

Performance

Narrowing in on the past two-year period, it beat the category index, the Russell 1000 Index, by an annualized 24 basis points, and outperformed the category average by 1.2 percentage points. And more importantly, when looking across a longer horizon, the strategy failed to differentiate itself. On a four-year basis, it matched the index.

The risk-adjusted performance makes a case for this fund. The share class outstripped the index with a higher Sharpe ratio, a measure of risk-adjusted return, over the trailing three-year period. These strong risk-adjusted results have not resulted in a bumpier ride for investors. This strategy took on similar risk as the benchmark, as measured by standard deviation. However, the share class proved itself ineffective as it was unable to generate alpha, over the same period, against the category group index: a benchmark that encapsulates the performance of the broader asset class.

Published on

It is important to be aware of fees, as lower-cost investments maximize investors' returns.

null Morningstar Manager Research

Morningstar Manager Research

Price

This fund is in the cheapest quintile of its Morningstar Category. Its low expense ratio, taken together with the fund’s People, Process, and Parent Pillars, suggests that this share class has the ability to deliver positive alpha compared with the lesser of its median category peer or the category benchmark, leading to its Morningstar Medalist Rating of Silver.

Published on

Portfolio Holdings BBUS

  • Current Portfolio Date
  • Equity Holdings
  • Bond Holdings
  • Other Holdings
  • % Assets in Top 10 Holdings 31.6
Top 10 Holdings
% Portfolio Weight
Market Value USD
Sector

Microsoft Corp

6.93 215.4 Mil
Technology

Apple Inc

5.46 169.8 Mil
Technology

NVIDIA Corp

4.87 151.6 Mil
Technology

Amazon.com Inc

3.70 115.0 Mil
Consumer Cyclical

Meta Platforms Inc Class A

2.43 75.7 Mil
Communication Services

Alphabet Inc Class A

1.96 61.1 Mil
Communication Services

Alphabet Inc Class C

1.77 55.1 Mil
Communication Services

Berkshire Hathaway Inc Class B

1.65 51.3 Mil
Financial Services

Eli Lilly and Co

1.45 45.0 Mil
Healthcare

Broadcom Inc

1.38 42.9 Mil
Technology