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Designed to provide broad exposure to the Large Cap Blend segment of the US equity market, the JPMorgan Diversified Return U.S. Equity ETF (JPUS) is a passively managed exchange traded fund launched on 09/29/2015.
The fund is sponsored by J.P. Morgan. It has amassed assets over $444.41 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. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.
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 2.09%.
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 Consumer Staples sector--about 13.90% of the portfolio. Healthcare and Industrials round out the top three.
Looking at individual holdings, Broadcom Inc Common (AVGO) accounts for about 0.49% of total assets, followed by Ciena Corp Common Stock (CIEN) and Nvidia Corp Common Stock (NVDA).
The top 10 holdings account for about 4.48% 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 return is roughly 1.70% so far this year and is up about 15.51% in the last one year (as of 01/16/2025). In the past 52-week period, it has traded between $101.27 and $123.77.
The ETF has a beta of 0.97 and standard deviation of 15.09% for the trailing three-year period, making it a medium risk choice in the space. With about 364 holdings, it effectively diversifies company-specific risk.