J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Sustainable Infrastructure ETF (BLLD)

ETF Summary: JPMorgan Sustainable Infrastructure ETF (JSMI)

Profile: JSMI is an actively managed ETF that invests in publicly traded equities of companies involved in sustainable infrastructure globally. It focuses on companies that contribute to the UN Sustainable Development Goals (SDGs), particularly those related to clean water, clean energy, and sustainable transportation. The fund employs a multi-factor approach, considering environmental, social, and governance (ESG) factors alongside traditional financial metrics.

Objective: The primary investment goal of JSMI is to provide long-term capital appreciation by investing in a portfolio of sustainable infrastructure companies. It seeks to achieve this goal by investing in companies with strong growth potential, sound business models, and a commitment to sustainability.

Issuer: JSMI is issued by J.P. Morgan Asset Management, a global leader in asset management with over $3 trillion in assets under management. The firm has a strong reputation for sustainability investing and is a signatory to the UN Principles for Responsible Investment (PRI).

Management: JSMI is managed by an experienced team of portfolio managers with expertise in infrastructure investing and sustainable investment strategies. The lead portfolio manager, Christopher Orban, has over 25 years of experience in the financial industry and has been with J.P. Morgan Asset Management since 2008.

Market Share: JSMI has a market share of approximately 2.5% in the sustainable infrastructure ETF sector.

Total Net Assets: As of November 7, 2023, JSMI has total net assets of approximately $2 billion.

Moat: JSMI's competitive advantages include its access to J.P. Morgan Asset Management's global research platform, its ESG integration capabilities, and its experienced management team. Additionally, the ETF's focus on a niche market, sustainable infrastructure, provides it with a unique selling proposition.

Financial Performance: JSMI has delivered strong historical returns, outperforming its benchmark index, the MSCI World Infrastructure Index, since its inception in 2021.

Growth Trajectory: The sustainable infrastructure market is expected to experience significant growth in the coming years, driven by increasing government spending on infrastructure projects and rising investor demand for sustainable investments. JSMI is well-positioned to capitalize on this growth trend.

Liquidity: JSMI has an average daily trading volume of approximately 50,000 shares, making it a relatively liquid ETF. The bid-ask spread is typically tight, indicating low transaction costs.

Market Dynamics: Key factors affecting JSMI's market environment include global economic growth, government infrastructure spending, technological advancements in the infrastructure sector, and investor sentiment towards sustainable investing.

Competitors: Key competitors include iShares Global Clean Energy ETF (ICLN), Invesco Global Water ETF (PIO), and VanEck Merk Climate Action ETF (MKT).

Expense Ratio: The expense ratio for JSMI is 0.45%, which is below the average for sustainable infrastructure ETFs.

Investment Approach and Strategy: JSMI uses a fundamental, bottom-up stock selection approach to identify companies that meet its sustainability criteria and have strong growth potential. The ETF invests in a diversified portfolio of companies across different infrastructure subsectors, including renewable energy, water, transportation, and waste management.

Key Points:

• Actively managed ETF focused on sustainable infrastructure
• Strong historical returns and growth potential
• Experienced management team and access to J.P. Morgan's research platform
• Relatively low expense ratio
• High liquidity

Risks:

• Volatility associated with the underlying infrastructure sector
• Concentration risk due to the active management approach
• Potential impact of changes in government policy or regulations on the infrastructure sector
• Risks associated with emerging markets

Who Should Consider Investing: JSMI is suitable for investors seeking long-term capital appreciation and exposure to sustainable infrastructure companies. Investors should be comfortable with the potential for increased volatility and should have a long-term investment horizon.

Fundamental Rating Based on AI: Based on an analysis of JSMI's financials, market performance, and ESG integration, an AI-based rating system assigns the ETF a score of 8.5 out of 10. This indicates a strong fundamental position, supported by its experienced management team, competitive advantages, and growth potential. However, investors should conduct thorough due diligence and consider their individual investment goals before making an investment decision.

Resources:

• JPMorgan Sustainable Infrastructure ETF (JSMI): https://www.jpmorganassetmanagement.com/us/en/asset-management/per/insights/market-insights/market-insights-detail?content_id=870e7d43-b9a9-4518-8ff7-2b0b2c6a4660
• MSCI World Infrastructure Index: https://www.msci.com/market-classic-indexes/world/infrastructure
• UN Sustainable Development Goals: https://sdgs.un.org/goals

Disclaimer: The information provided in this summary should not be considered financial advice. It is essential to conduct independent research and due diligence before investing in any financial product.