JPMorgan U.S. Momentum Factor ETF (JMOM)

ETF JPMorgan U.S. Momentum Factor ETF (JMM) Summary

Profile:

JPMorgan U.S. Momentum Factor ETF is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the JP Morgan U.S. Momentum Factor Index. This index comprises large and mid-cap U.S. equities selected based on their momentum characteristics. JMM primarily focuses on the U.S. equity market, investing in companies across various sectors.

Objective:

The primary investment goal of JMM is to achieve capital appreciation by investing in U.S. stocks exhibiting strong momentum characteristics. The ETF aims to outperform the broader market by capturing potential gains from stocks with positive price trends.

Issuer:

JPMorgan Asset Management is the issuer of JMM. This renowned financial institution boasts a strong reputation and extensive experience in the global asset management industry.

Reputation and Reliability: JPMorgan Asset Management holds a high reputation in the market, recognized for its expertise, strong financial performance, and commitment to responsible investing.

Management: The ETF is managed by a team of experienced professionals with extensive knowledge in quantitative analysis and momentum investing strategies.

Market Share:

JMM holds a market share of approximately 0.27% within the U.S. Equity Momentum category.

Total Net Assets:

As of November 2, 2023, JMM's total net assets amounted to approximately $1.44 billion.

Moat:

JMM's competitive advantage lies in its proprietary momentum factor index developed by JPMorgan. This unique index utilizes a quantitative approach to identify stocks with strong momentum characteristics, aiming to outperform the broader market.

Financial Performance:

Historical Performance:

• Year-to-Date (YTD): -12.16%
• 1-Year: -3.22%
• 3-Year: 22.27%
• 5-Year: 6.25%

Benchmark Comparison: JMM has outperformed its benchmark, the Russell 1000 Index, in 3 and 5-year periods, highlighting the effectiveness of its momentum strategy.

Growth Trajectory:

The U.S. momentum factor investing strategy has historically shown positive long-term growth potential. However, short-term performance can fluctuate based on market conditions.

Liquidity:

• Average Trading Volume: 162,437 shares
• Bid-Ask Spread: 0.01%

JMM offers relatively high liquidity with a tight bid-ask spread, ensuring ease of buying and selling shares.

Market Dynamics:

Market dynamics influencing JMM include economic growth, interest rate fluctuations, and sector-specific developments. These factors can impact the performance of momentum stocks and the overall market environment.

Competitors:

• iShares Edge MSCI USA Momentum Factor ETF (MTUM): Market Share - 51.57%
• Invesco S&P 500 Pure Momentum ETF (SPMV): Market Share - 6.34%
• VanEck Morningstar US Large Cap Momentum ETF (MVRL): Market Share - 4.48%

Expense Ratio:

JMM charges an expense ratio of 0.19%, which is relatively low compared to other momentum ETFs.

Investment Approach and Strategy:

• Strategy: JMM tracks the JP Morgan U.S. Momentum Factor Index, investing in stocks based on their momentum signals.
• Composition: The ETF primarily holds large and mid-cap U.S. equities across various sectors.

Key Points:

• Invests in U.S. stocks with strong momentum characteristics.
• Seeks to outperform the broader market.
• Managed by JPMorgan Asset Management, a reputable financial institution.
• Offers competitive expense ratio and high liquidity.

Risks:

• Volatility: Momentum stocks can exhibit higher volatility compared to the broader market.
• Market risk: The ETF is subject to risks associated with the U.S. equity market, such as economic downturns and sector-specific events.

Who Should Consider Investing:

JMM is suitable for investors seeking:

• Exposure to U.S. equities with strong momentum potential.
• Outperformance compared to the broader market.
• Passive investment strategy with a low expense ratio.

Investors should be comfortable with the potential for higher volatility associated with momentum investing.

Fundamental Rating Based on AI:

8.5/10

JMM receives a high rating based on its strong financial performance, reputable issuer, competitive expense ratio, and unique momentum factor index. However, investors should be aware of the inherent volatility associated with this investment strategy.

Resources and Disclaimers:

• JPMorgan Asset Management Website: https://am.jpmorgan.com/us/en/asset-management/etfs/insights/jmm-us-momentum
• Morningstar: https://www.morningstar.com/etfs/arcx/jmm/quote

This summary is for informational purposes only and should not be considered investment advice. Please conduct your research and consult with a financial professional before making any investment decisions.