In This Article:
If you're interested in broad exposure to the Large Cap Blend segment of the US equity market, look no further than the JPMorgan Diversified Return U.S. Equity ETF (JPUS), a passively managed exchange traded fund launched on 09/29/2015.
The fund is sponsored by J.P. Morgan. It has amassed assets over $511.45 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 Blend
Large cap companies usually 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.
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 0.18%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 2.39%.
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 Consumer Staples sector--about 13.80% of the portfolio. Healthcare and Information Technology round out the top three.
Looking at individual holdings, Arista Networks Inc (ANET) accounts for about 0.49% of total assets, followed by Microsoft Corp Common (MSFT) and General Mills Inc Common (GIS).
The top 10 holdings account for about 4.51% of total assets under management.
Performance and Risk
JPUS 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 added about 2.80% so far this year and was up about 5.81% in the last one year (as of 06/28/2023). In the past 52-week period, it has traded between $85.50 and $101.83.
The ETF has a beta of 0.96 and standard deviation of 16.24% for the trailing three-year period, making it a medium risk choice in the space. With about 355 holdings, it effectively diversifies company-specific risk.