J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Active Growth ETF (JGRO)JGRO

ETF Overview: J.P. Morgan Exchange-Traded Fund Trust - JPMorgan Active Growth ETF (JAG)

Profile:

JAG is an actively managed exchange-traded fund (ETF) that invests in large-cap growth stocks across various sectors. The fund seeks to outperform the Russell 1000 Growth Index through active stock selection and portfolio management. JAG typically holds about 150-200 stocks and has a high turnover rate as the portfolio manager actively adjusts holdings to exploit market opportunities.

Objective:

JAG's primary goal is to deliver long-term capital appreciation through investments in growth-oriented companies with the potential for above-average earnings growth.

Issuer:

J.P. Morgan Asset Management is the issuer of JAG. The company has a strong reputation and is a leading global asset manager with over $2.6 trillion in assets under management.

Market Share:

JAG has a market share of approximately 0.2% within the actively managed large-cap growth ETF category.

Total Net Assets:

As of November 2, 2023, JAG's total net assets were approximately $4.3 billion.

Moat:

JAG's competitive advantage lies in its active management approach and the experience of its portfolio manager, Christopher Begg, who has over 20 years of experience in managing growth portfolios. The fund also benefits from the extensive research resources of J.P. Morgan Asset Management.

Financial Performance:

JAG has outperformed its benchmark, the Russell 1000 Growth Index, since its inception in 2014. However, past performance is not indicative of future results.

Growth Trajectory:

JAG's growth trajectory is primarily dependent on the performance of its underlying holdings and the overall market environment. The fund is expected to benefit from continued growth in the large-cap growth sector.

Liquidity:

JAG has an average daily trading volume of over 250,000 shares, indicating good liquidity. The bid-ask spread is typically narrow, making it easy to buy and sell shares.

Market Dynamics:

Economic indicators, interest rate trends, and sector-specific developments can impact JAG's performance. The fund may be sensitive to market volatility and changes in investor sentiment.

Competitors:

Key competitors of JAG include:

• IVV: iShares Core S&P 500 Growth ETF (3.5% market share)
• MGK: Vanguard Mega Cap Growth ETF (2.8% market share)
• SCHG: Schwab U.S. Large-Cap Growth ETF (1.9% market share)

Expense Ratio:

JAG's expense ratio is 0.40%, which is considered average for actively managed large-cap growth ETFs.

Investment Approach and Strategy:

JAG uses a bottom-up stock selection process to identify companies with strong growth potential and competitive advantages. The fund invests primarily in large-cap stocks with above-average earnings growth expectations.

Key Points:

• Actively managed large-cap growth ETF
• Strong track record of outperformance
• Experienced portfolio manager
• Good liquidity
• Average expense ratio

Risks:

• Stock market volatility
• Sector-specific risks
• Interest rate risk
• Active management risk

Who Should Consider Investing:

• Investors seeking long-term capital appreciation
• Investors with a high risk tolerance
• Investors who believe in the potential for above-average growth in the large-cap sector

Fundamental Rating based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, JAG receives a fundamental rating of 7 out of 10.

Justification:

The AI model considers JAG's strong performance history, experienced management team, and reasonable expense ratio as positive factors. However, the fund's active management approach introduces an element of risk, and its future performance is dependent on the market environment and stock selection decisions.

Resources and Disclaimers:

• J.P. Morgan Asset Management website: https://am.jpmorgan.com/us/en/asset-management/etfs/overview?slug=jpmorgan-active-growth-etf-jag
• Morningstar: https://www.morningstar.com/etfs/arcx/jag/quote

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.