Should JPMorgan Diversified Return U.S. Equity ETF (JPUS) Be on Your Investing Radar?
Style Box ETF report for JPUS
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 $499.29 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 BlendCompanies 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.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsSince 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 0.18%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 2.22%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Consumer Staples sector--about 14.20% of the portfolio.
Healthcare and Utilities round out the top three.Looking at individual holdings, Quanta Services Inc (PWR - Free Report) accounts for about 0.48% of total assets, followed by Mckesson Corp Common (MCK - Free Report) and General Mills Inc Common (GIS - Free Report) .The top 10 holdings account for about 4.53% of total assets under management.Performance and RiskJPUS 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 lost about -9.31% so far this year and is down about -6.47% in the last one year (as of 12/20/2022). 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 24.55% for the trailing three-year period, making it a medium risk choice in the space.
With about 367 holdings, it effectively diversifies company-specific risk.AlternativesJPMorgan 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 sufficient 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 $289.13 billion in assets, SPDR S&P 500 ETF has $364.32 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineWhile an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.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.