The JPMorgan Diversified Return U.S. Equity ETF (
JPUS Quick Quote JPUS - Free Report) was launched on 09/29/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $686.35 million, making it one of the larger ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that fall in the large cap category tend to have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.55%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Healthcare sector--about 13.70% of the portfolio. Information Technology and Consumer Staples round out the top three.
Looking at individual holdings, Apple Inc Common Stock (
AAPL Quick Quote AAPL - Free Report) accounts for about 0.63% of total assets, followed by Microsoft Corp Common ( MSFT Quick Quote MSFT - Free Report) and Nvidia Corp Common Stock ( NVDA Quick Quote NVDA - Free Report) .
The top 10 holdings account for about 5.08% of total assets under management.
Performance and Risk
JPUS seeks to match the performance of the Russell 1000 Diversified Factor Index before fees and expenses. The Russell 1000 Diversified Factor Index comprises of U.S. equity securities selected to represent a diversified set of factor characteristics, originally developed by the adviser.
The ETF has added roughly 19.27% so far this year and was up about 36.74% in the last one year (as of 07/29/2021). In the past 52-week period, it has traded between $71.50 and $98.22.
The ETF has a beta of 1 and standard deviation of 22.89% for the trailing three-year period, making it a medium risk choice in the space. With about 364 holdings, it effectively diversifies company-specific risk.
JPMorgan Diversified Return U.S. Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JPUS is a good option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The iShares Core S&P 500 ETF (
IVV Quick Quote IVV - Free Report) and the SPDR S&P 500 ETF ( SPY Quick Quote SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $295.50 billion in assets, SPDR S&P 500 ETF has $379.10 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%. Bottom-Line
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit
Zacks ETF Center.