Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME Quick QuoteJPME - Free Report) , a passively managed exchange traded fund launched on May 11, 2016.

The fund is sponsored by J.P. Morgan. It has amassed assets over $363.55 million, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.

Why Mid Cap Blend

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

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 0.24%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 2.01%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Healthcare sector -- about 12.4% of the portfolio. Industrials and Consumer Staples round out the top three.

Looking at individual holdings, Lumentum Holdings Inc (LITE) accounts for about 0.7% of total assets, followed by Ciena Corp Common Stock (CIEN) and Ubiquiti Inc (UI).

The top 10 holdings account for about 5.51% of total assets under management.

Performance and Risk

JPME seeks to match the performance of the Russell Midcap Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Mid Cap Equity Index utilizes a rules-based approach that combines risk-based portfolio construction with multi-factor security selection, including value, quality and momentum factors.

The ETF has added about 5.16% so far this year and is up roughly 3.33% in the last one year (as of 10/14/2025). In the past 52-week period, it has traded between $89.28 and $110.92.

The ETF has a beta of 0.95 and standard deviation of 15.37% for the trailing three-year period. With about 359 holdings, it effectively diversifies company-specific risk.

Alternatives

JPMorgan Diversified Return U.S. Mid Cap 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, JPME is a sufficient option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.

The Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $88.69 billion in assets, iShares Core S&P Mid-Cap ETF has $98.82 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

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.