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Should JPMorgan Diversified Return U.S. Equity ETF (JPUS) Be on Your Investing Radar?
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The JPMorgan Diversified Return U.S. Equity ETF (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 $533.74 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.26%.
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 Consumer Staples sector--about 13.20% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Dow Inc Common Stock Usd (DOW - Free Report) accounts for about 0.46% of total assets, followed by Huntsman Corp Common (HUN - Free Report) and Halliburton Co Common (HAL - Free Report) .
The top 10 holdings account for about 4.38% 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 JP Morgan Diversified Factor US Equity Index utilizes a rules-based approach combining risk-weighted portfolio construction with multi-factor security screening based on value, quality and momentum factors.
The ETF has added about 4.28% so far this year and is up roughly 1.32% in the last one year (as of 02/21/2023). In the past 52-week period, it has traded between $85.50 and $106.83.
The ETF has a beta of 0.96 and standard deviation of 24.64% for the trailing three-year period, making it a medium risk choice in the space. With about 356 holdings, it effectively diversifies company-specific risk.
Alternatives
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 - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $307.55 billion in assets, SPDR S&P 500 ETF has $373.69 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.
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Should JPMorgan Diversified Return U.S. Equity ETF (JPUS) Be on Your Investing Radar?
The JPMorgan Diversified Return U.S. Equity ETF (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 $533.74 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.
Why Large Cap Blend
Companies that find themselves in the large cap category typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows 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.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.26%.
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 Consumer Staples sector--about 13.20% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Dow Inc Common Stock Usd (DOW - Free Report) accounts for about 0.46% of total assets, followed by Huntsman Corp Common (HUN - Free Report) and Halliburton Co Common (HAL - Free Report) .
The top 10 holdings account for about 4.38% 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 JP Morgan Diversified Factor US Equity Index utilizes a rules-based approach combining risk-weighted portfolio construction with multi-factor security screening based on value, quality and momentum factors.
The ETF has added about 4.28% so far this year and is up roughly 1.32% in the last one year (as of 02/21/2023). In the past 52-week period, it has traded between $85.50 and $106.83.
The ETF has a beta of 0.96 and standard deviation of 24.64% for the trailing three-year period, making it a medium risk choice in the space. With about 356 holdings, it effectively diversifies company-specific risk.
Alternatives
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 - Free Report) and the SPDR S&P 500 ETF (SPY - Free Report) track a similar index. While iShares Core S&P 500 ETF has $307.55 billion in assets, SPDR S&P 500 ETF has $373.69 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.
Bottom-Line
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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.