JPMorgan BetaBuilders US Equity ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Microsoft

Apple

NVIDIA

Amazon

Alphabet

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Broadcom

Eli Lilly

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. JPMorgan BetaBuilders US Equity ETF earns an Above Average Process Pillar rating. The main contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Noteworthy risk-adjusted performance also contributes to the process. This can be seen in the fund's five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Target Market Exposure IndexSM.  The underlying index is a free float adjusted market capitalization weighted index which consists of equity securities primarily traded in the United States. The underlying index targets 85% of those stocks by market capitalization, and and primarily includes large- and mid-cap companies. The fund will invest at least 80% of its assets in securities included in the underlying index. 

 The portfolio is overweight in technology by 2.7 percentage points in terms of assets compared with the category average, and its communication services allocation is similar to the category. The sectors with low exposure compared to category peers are industrials and healthcare; however, the allocations are similar to the category. The portfolio is composed of 573 holdings and is less top-heavy than peers. Specifically, 31.3% of the fund’s assets are concentrated within the top 10 fund holdings, as opposed to the category average's 49.5%. And in closing, in terms of portfolio turnover, this portfolio turns over its holdings less quickly than peers, potentially leading to lower costs for investors and eliminating a drag on performance.

Above Average

Process

JPMorgan’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are four managers listed on the fund: Nicholas D’Eramo, Michael Loeffler, Alex Hamilton, Oliver Furby. Experience on the team is abundant, with 12 years of average portfolio management experience. Together, they manage a total of eight strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.
As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various global cohorts and diverse asset classes, the firm has more tightly integrated its capabilities in recent years, notably through the development of proprietary analytical and risk systems. Investment teams are robustly staffed and helmed by seasoned contributors. The firm’s strategies tend to produce reliable portfolios, and several flagship offerings are Morningstar Medalists. Manager incentives align with fundholders'; compensation reflects longer-term performance factors, and portfolio managers invest in the firm’s strategies as part of their compensation plans. 
The firm’s funds tend to be well-priced, but they aren’t as competitive as many highly regarded peers of similar scale. Recent product launches include thematic and single-country strategies, both of which carry the potential for volatile performance and flows, along with misuse by investors. The firm remains intrepid when it comes to developing an environmental, social, and governance-focused framework and continues to move into other areas such as direct indexing through its 55iP acquisition and China through its joint venture, but these complicated initiatives take time to assess any real and lasting effect.

Parent

JPMorgan BetaBuilders US Equity ETF

BBUS tracks an index of US equities, selected and weighted by market cap.

This article provides sector metrics in the S&P 500 index. JPMorgan BetaBuilders U.S. Equity ETF tracks an index very close to the S&P 500 and has a lower fee. Energy and real estate have good value and quality scores, whereas technology and industrials are the most overvalued sectors.

S&P 500 Dashboard And Focus On BBUS, A Cheap Alternative To SPY

Blended large-cap equity funds are increasingly attractive for investors with a renewed risk appetite. JPMorgan BetaBuilders U.S. Equity ETF offers near-full index replication with low fees and comparable yields. The outlook for US growth equities is robust, supported by an improved economic outlook, projected earnings growth, and a potential pause in the Fed's rate cycle.

BBUS: Low-Cost Correlation To Benchmarks, Attractive Proposition

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Low expense ratio ETFs allow investors to keep more of your money working for you, which helps them to build long-term wealth.

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Year after year, investors say that expense ratio matters most when choosing an ETF. While I've long advocated for investors to dive deeper to understand what's inside the funds they own or are considering, what has become clear is that awareness is key to an ETF being selected.

If Expense Ratio Really Mattered, Most of These ETFs Would Dominate

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Let's take a look at some top-ranked ETFs with relatively lower expense ratios that can be considered amid the highly inflationary environment.

Is Inflation Burning a Hole in Pocket? Bet on Top-Ranked Cheap ETFs

Key Takeaways As the never-ending battle to win the attention of cost-conscious investors continues, there are approximately 80 ETFs that have expense ratios of 0.05% or below. Morningstar's index-based JPMorgan BetaBuilders US Equity ETF (BBUS) and BNY Mellon US Large Cap Core Equity ETF (BKLC) respectively charge 0.02% and 0.00% in fees and have been [.

ETF Fees Matter, but Don't Forget to Look Inside

With the proliferation and growing adoption of smart beta funds, a common question investors ask is “How low can you go?” What that means, of course, is lower costs continue to serve as an important qualifier when selecting ETFs that fit an investor’s portfolio or more specifically, their budget.

Investors Want the Lowdown on Low Costs for Smart Beta Funds

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After a record-setting rally, ETF investors should can still stay invested, but it is also important to manage their portfolio and expectations for the new year.

News for JPMorgan BetaBuilders US Equity ETF ETF (BBUS)