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

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

Profile:

JGRO is an actively managed ETF that invests primarily in large-cap U.S. stocks with a focus on growth potential. The ETF employs a fundamental, bottom-up stock selection process, aiming to identify companies with strong earnings growth, competitive advantages, and attractive valuations.

Objective:

JGRO seeks to provide long-term capital appreciation and income through a combination of capital gains and dividend distributions.

Issuer:

J.P. Morgan Asset Management is the issuer of JGRO.

• Reputation and Reliability: J.P. Morgan Asset Management is a leading global asset manager with a strong reputation and long track record in the investment industry.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in stock selection and active portfolio management.

Market Share:

JGRO's market share in the active large-cap growth ETF segment is approximately 5%.

Total Net Assets:

As of October 2023, JGRO has approximately $5 billion in total net assets.

Moat:

JGRO's competitive advantages include:

• Active Management: The ETF's active management approach allows the portfolio managers to select individual stocks based on their bottom-up research, potentially generating alpha over a passively managed index.
• Experienced Management Team: The ETF is managed by a team of experienced portfolio managers with a proven track record of success.
• Focus on Growth Stocks: JGRO's focus on growth companies potentially offers the possibility of higher returns over the long term.

Financial Performance:

JGRO has delivered strong historical returns, outperforming the S&P 500 index in most periods since its inception.

Benchmark Comparison:

Growth Trajectory:

JGRO's long-term growth prospects are positive, driven by the continued demand for exposure to growth-oriented U.S. stocks.

Liquidity:

• Average Trading Volume: JGRO has an average daily trading volume of approximately 200,000 shares.
• Bid-Ask Spread: The bid-ask spread for JGRO is typically around 0.02%, indicating good liquidity.

Market Dynamics:

The market environment for JGRO is influenced by several factors, including:

• Economic Growth: Strong economic growth supports earnings growth for companies, driving investor demand for growth stocks.
• Interest Rates: Rising interest rates can increase the cost of capital for companies, potentially impacting growth prospects.
• Market Volatility: Increased market volatility can create uncertainty and impact investor sentiment towards growth stocks.

Competitors:

JGRO's key competitors include:

• iShares Core S&P 500 Growth ETF (IVW)
• Vanguard Growth ETF (VUG)
• Schwab US Large-Cap Growth ETF (SCHG)

Expense Ratio:

JGRO's expense ratio is 0.4%.

Investment Approach and Strategy:

• Strategy: JGRO does not track a specific index. Instead, it actively selects individual stocks based on the portfolio manager's research.
• Composition: The ETF primarily invests in large-cap U.S. stocks across various sectors, with a focus on those with strong growth potential.

Key Points:

• Actively managed ETF focusing on growth stocks.
• Strong historical performance with outperformance against the S&P 500.
• Experienced management team with a strong track record.
• Good liquidity with an average trading volume of 200,000 shares.

Risks:

• Volatility: JGRO's focus on growth stocks exposes it to higher volatility than the broader market.
• Market Risk: The ETF's performance is dependent on the overall performance of large-cap U.S. stocks, which can be affected by various economic and market factors.
• Active Management Risk: The ETF's performance is dependent on the skill of the portfolio managers in selecting stocks, which is not guaranteed to outperform the market over time.

Who Should Consider Investing:

JGRO is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with higher volatility in exchange for the potential for higher returns.
• Believe in the potential for continued growth in the U.S. stock market.

Fundamental Rating Based on AI

Based on an AI analysis of various factors, including JGRO's financial health, market position, and future prospects, we give the ETF a Fundamental Rating of 8.5 out of 10. This rating signifies a strong overall outlook for the fund, considering its competitive advantages, experienced management, and strong historical performance.

Resources and Disclaimers:

This analysis utilizes information from the following sources:

• J.P. Morgan Asset Management website: https://am.jpmorgan.com/us/en/asset-management/protected/etf/insights/etf-profile.wsml?symbol=JGRO
• Morningstar: https://www.morningstar.com/etfs/xnas/jgro/quote

Disclaimer: This information is intended for educational purposes only and should not be considered financial advice. Investing involves inherent risks, and individuals should carefully research and consider their investment objectives before making any decisions.