J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Carbon Transition U.S. Equity ETF (JCTR)JCTR

ETF Overview: J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Carbon Transition U.S. Equity ETF (JCTR)

Profile:

JCTR is an actively managed ETF that seeks to invest in U.S. companies that are engaged in the transition to a low-carbon economy. The fund primarily invests in companies positioned to benefit from the shift towards clean energy, sustainable transportation, energy efficiency, and decarbonization technologies.

Objective:

JCTR's primary objective is to achieve long-term capital appreciation by investing in companies that are actively contributing to the transition to a low-carbon economy.

Issuer:

J.P. Morgan Asset Management

• Reputation and Reliability: J.P. Morgan Asset Management is a leading global investment firm with a strong reputation and track record. It manages over $2.6 trillion in assets across various asset classes and strategies.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in sustainable investing and U.S. equities.

Market Share:

JCTR has a relatively small market share in the sustainable investing ETF space, with approximately $56 million in assets under management as of October 26, 2023.

Total Net Assets:

$56 million (as of October 26, 2023)

Moat:

• Active Management: JCTR's active management approach allows the portfolio managers to select companies that they believe are best positioned to benefit from the transition to a low-carbon economy.
• ESG Focus: The fund's focus on sustainable investing provides investors with exposure to a growing and impactful market segment.
• Experienced Management: The ETF is managed by a team of experienced portfolio managers with expertise in sustainable investing and U.S. equities.

Financial Performance:

Since its inception in March 2022, JCTR has delivered a total return of 7.5% (as of October 26, 2023). This compares favorably to the S&P 500 Index, which has returned -16.1% over the same period.

Benchmark Comparison:

JCTR is benchmarked against the Russell 1000 Low Carbon Index. The ETF has outperformed its benchmark by 1.2% since inception.

Growth Trajectory:

The market for sustainable investing is expected to continue to grow rapidly in the coming years. This is driven by factors such as increasing awareness of climate change, government policies, and investor demand.

Liquidity:

• Average Trading Volume: 1,000 shares (as of October 26, 2023)
• Bid-Ask Spread: 0.05% (as of October 26, 2023)

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic Indicators: The overall health of the economy can impact the performance of companies in the low-carbon economy.
• Sector Growth Prospects: The growth of the sustainable investing sector will drive demand for the ETF.
• Current Market Conditions: Market volatility and interest rates can impact the ETF's performance.

Competitors:

• iShares Global Clean Energy ETF (ICLN) - 45% market share
• Invesco Solar ETF (TAN) - 15% market share
• First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) - 10% market share

Expense Ratio:

0.60%

Investment Approach and Strategy:

• Strategy: The ETF actively manages its portfolio to invest in companies that are contributing to the transition to a low-carbon economy.
• Composition: The ETF invests in a diversified portfolio of U.S. equities across various sectors, including renewable energy, energy efficiency, sustainable transportation, and decarbonization technologies.

Key Points:

• Actively managed ETF focused on the low-carbon economy
• Strong outperformance compared to its benchmark
• Well-diversified portfolio of U.S. equities
• Experienced management team

Risks:

• Volatility: The ETF's focus on a specific market segment may lead to increased volatility compared to broader market ETFs.
• Market Risk: The performance of the ETF is dependent on the performance of the underlying companies, which may be impacted by factors such as economic conditions, technological advancements, and government policies.

Who Should Consider Investing:

Investors who are looking for:

• Exposure to the growing sustainable investing market
• An actively managed ETF that seeks to outperform its benchmark
• A diversified portfolio of U.S. equities focused on the low-carbon economy

Fundamental Rating Based on AI:

7/10

JCTR is a well-managed ETF with a strong track record of outperformance. The fund benefits from its active management approach, ESG focus, and experienced management team. However, its small market share and relatively high expense ratio are factors to consider.

Resources and Disclaimers:

• J.P. Morgan Asset Management website: https://am.jpmorgan.com/
• ETF Database: https://etfdb.com/etf/JCTR/
• The information provided in this analysis should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.