JPMorgan BetaBuilders Japan ETF BBJP

JPMorgan BetaBuilders Japan ETF holds a quantitatively derived Neutral Morningstar Medalist Rating. The rating suggests the model does not express a clear expectation of outperformance or underperformance relative to peers over a full market cycle.

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: Below Average

The fund has a moderately concentrated portfolio and accurately represents the US Fund Japan Stock category's opportunity set. Available data suggests that the fund should be able to efficiently track its benchmark index. The US Fund Japan Stock category has historically been challenging for passive investing. Active managers tend to deliver better performance in this category compared with passive strategies.

Performance (in US Dollar)

Over the past 12 months, JPMorgan BetaBuilders Japan ETF share class returned 26.3%, underperforming both its category index, the MSCI Japan NR USD Index (27.8%), and its Morningstar category peers (29.1%). Over five years, the fund returned 9.5% per year, underperforming both the index (10.1% per year) and its Morningstar Category average (12.3% per year).

Price

JPMorgan BetaBuilders Japan ETF's Prospectus Adjusted Expense Ratio is 0.19% per year. It places it in the cheapest quintile of the Morningstar US Fund Japan Stock Category, where the median fee is 0.76% 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 Japan ETF is assigned a Below 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 Japan Stock category's opportunity set.

Diversification

The fund's portfolio shows concentration, 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

The Japan Stock category has historically been challenging for passive investing. Active managers tend to deliver better performance in this category compared with passive strategies.

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® Japan 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 stocks traded primarily on the Tokyo Stock Exchange or the Nagoya Stock Exchange. The fund may invest up to 20% of its assets in exchange-traded futures and forward foreign currency contracts to seek performance that corresponds to the underlying index.

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).

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 August 2026.

Short-Term Performance

Over the past 12 months, JPMorgan BetaBuilders Japan ETF share class returned 26.3%, underperforming its category index, the MSCI Japan NR USD Index (27.8%), and its Morningstar category peers (29.1%). Over the three-year period, it returned 19% per year, trailing both the index (20% per year) and its Morningstar category peers (21.9% per year).

Long-Term Performance

Over five years, the fund returned 9.5% per year, underperforming the index (10.1% per year) and its Morningstar Category average (12.3% per year).

JPMorgan BetaBuilders Japan ETF's Prospectus Adjusted Expense Ratio is 0.19% per year. It places it in the cheapest quintile of the Morningstar US Fund Japan Stock Category, where the median fee is 0.76% 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.