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The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) was launched on 04/14/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $1.44 billion, 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
Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.
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 0.07%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 1.09%.
Sector Exposure and Top Holdings
It 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 Information Technology sector--about 17.90% of the portfolio. Industrials and Financials round out the top three.
Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB).
The top 10 holdings account for about 7.4% of total assets under management.
Performance and Risk
BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.
The ETF has lost about -15.23% so far this year and is down about -12.78% in the last one year (as of 05/02/2022). In the past 52-week period, it has traded between $77.99 and $97.36.
The ETF has a beta of 0.99 and standard deviation of 22.19% for the trailing three-year period. With about 595 holdings, it effectively diversifies company-specific risk.