JPMorgan USD Emerging Markets Sovereign Bond ETF JPMB

JPMorgan USD Emerging Mkts Svr Bd 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: 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: Below Average

The Process rating is driven by the fund's gross-of-fee information ratio, a measure of risk-adjusted excess return. Over one, three, and five years, it ranks slightly below peers, below peers, and below peers, respectively. The parent firm's risk-adjusted success ratio, which measures the share of its fixed income funds that outperform peers, ranks slightly above peer firms over 10 years.

Performance (in US Dollar)

Over the past 12 months, JPMorgan USD Emerging Mkts Svr Bd ETF share class returned 6.2%, outperforming its category index, the Bloomberg EM USD Aggregate TR USD Index (5%), but underperforming its Morningstar category peers (8%). Over five years, the fund returned 1.2% per year, underperforming both the index (1.7% per year) and its Morningstar Category average (2.7% per year).

Price

JPMorgan USD Emerging Mkts Svr Bd ETF's Prospectus Adjusted Expense Ratio is 0.39% per year. It places it in the cheapest quintile of the Morningstar US Fund Emerging Markets Bond Category, where the median fee is 0.86% per year. This cost positioning translates into a Medalist Rating Price Score of 2.26, 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 USD Emerging Mkts Svr Bd ETF is assigned a Below Average Process rating. Our evaluation of a strategies' Process Pillar focuses on the effectiveness of its investment approach. A well-structured process should be clearly defined and consistently applied. This assessment incorporates quantitative measures of risk-adjusted returns, success ratio, and benchmark sensitivity to gauge the fund's ability to execute its strategy effectively over time.

Fund Information Ratio

We assess the strategy's ability to generate risk-adjusted excess returns relative to its Morningstar Category Index using the gross-of-fee information ratio. This is evaluated over one-, three-, and five-year periods where available. Here, the category-relative information ratio ranks slightly below peers over one year, below peers over three years, and below peers over five years.

Brand/Asset Class Risk-Adjusted Success Ratio

The risk-adjusted success ratio gauges a firm's ability to deliver competitive results within each major asset class. It reflects the share of the firm's funds that both survived and outperformed the peer average over trailing three-, five-, and 10-year periods, where available. Based on the average performance of the group's fixed income fund offerings, the success ratio ranks slightly below peers, relative to the other firms in the strategy's asset class over three years, slightly above peers over five years, and slightly above peers over 10 years.

Benchmark Sensitivity

We assess R-squared to measure the extent to which a fund's returns move in line with its benchmark. In our analysis, funds in the bottom decile for R-squared (that is, those least correlated from their benchmark) have historically underperformed the rest of the universe. As a result, Process Pillars for these funds are subject to a small penalty. No penalty is applied to the strategy.

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 August 2026.

Short-Term Performance

Over the past 12 months, JPMorgan USD Emerging Mkts Svr Bd ETF share class returned 6.2%, outperforming its category index, the Bloomberg EM USD Aggregate TR USD Index (5%), but underperforming its Morningstar category peers (8%). Over the three-year period, it returned 7.6% per year, trailing both the index (8.3% per year) and its Morningstar category peers (9.9% per year).

Long-Term Performance

Over five years, the fund returned 1.2% per year, underperforming the index (1.7% per year) and its Morningstar Category average (2.7% per year).

JPMorgan USD Emerging Mkts Svr Bd ETF's Prospectus Adjusted Expense Ratio is 0.39% per year. It places it in the cheapest quintile of the Morningstar US Fund Emerging Markets Bond Category, where the median fee is 0.86% per year. This cost positioning translates into a Medalist Rating Price Score of 2.26, 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.