Looking for broad exposure to the Small Cap Value segment of the US equity market? You should consider the JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC Quick QuoteBBSC - Free Report) , a passively managed exchange traded fund launched on November 16, 2020.

The fund is sponsored by J.P. Morgan. It has amassed assets over $556.46 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.

Why Small Cap Value

Sitting at a market capitalization below $2 billion, small cap companies tend to be high-potential stocks compared to its large and mid cap counterparts, but come with higher risk.

Value stocks are known for their lower than average price-to-earnings and price-to-book ratios, but investors should also note their lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.24%.

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 Financials sector -- about 18.8% of the portfolio. Industrials and Information Technology round out the top three.

Looking at individual holdings, Jpmorgan Us Govt Mmkt Fun accounts for about 0.87% of total assets, followed by Brinker International (EAT) and Dycom Industries Inc (DY).

The top 10 holdings account for about 4.63% of total assets under management.

Performance and Risk

BBSC seeks to match the performance of the MORNINGSTAR US SML CP TRG MRK EXP EXT ID before fees and expenses. The Morningstar US Small Cap Target Market Exposure Extended Index is a free-float adjusted, market-cap weighted index that targets small cap securities traded in the U.S.

The ETF has lost about 0.57% so far this year and is up roughly 8.26% in the last one year (as of 08/05/2025). In the past 52-week period, it has traded between $52.57 and $74.87.

The ETF has a beta of 1.14 and standard deviation of 23.02% for the trailing three-year period. With about 754 holdings, it effectively diversifies company-specific risk.

Alternatives

JPMorgan BetaBuilders U.S. Small Cap Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, BBSC is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $10.76 billion in assets, Vanguard Small-Cap Value ETF has $29.85 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.

Bottom-Line

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they 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.