Launched on 09/29/2015, the JPMorgan Diversified Return U.S. Equity ETF (JPUS) is a passively managed exchange traded fund designed to provide a 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 $427.76 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

Companies that fall in the large cap category tend to 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

When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.

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 2.07%.

Sector Exposure and Top Holdings

ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Consumer Staples sector--about 14.60% of the portfolio. Healthcare and Real Estate round out the top three.

Looking at individual holdings, Kellanova Common Stock (K) accounts for about 0.50% of total assets, followed by First Citizens (FCNCA) and Iron Mountain Inc Reit (IRM).

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 has added about 13.44% so far this year and it's up approximately 21.06% in the last one year (as of 09/10/2024). In the past 52-week period, it has traded between $89.72 and $117.97.

The ETF has a beta of 0.96 and standard deviation of 15.29% for the trailing three-year period, making it a medium risk choice in the space. With about 370 holdings, it effectively diversifies company-specific risk.

Alternatives

JPMorgan 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 good 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) and the SPDR S&P 500 ETF (SPY) track a similar index. While iShares Core S&P 500 ETF has $506.52 billion in assets, SPDR S&P 500 ETF has $547.40 billion. IVV has an expense ratio of 0.03% and SPY charges 0.09%.

Bottom-Line

While 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.

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JPMorgan Diversified Return U.S. Equity ETF (JPUS): ETF Research Reports

Iron Mountain Incorporated (IRM) : Free Stock Analysis Report

Kellanova (K) : Free Stock Analysis Report

First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

iShares Core S&P 500 ETF (IVV): ETF Research Reports

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