JPMorgan U.S. Momentum Factor ETF (JMOM)JMOM

ETF JPMorgan U.S. Momentum Factor ETF (JMO)

Profile:

JMO is an actively managed exchange-traded fund (ETF) that seeks to track the performance of the J.P. Morgan U.S. Momentum Factor Index. This index invests in large- and mid-cap U.S. stocks exhibiting strong momentum characteristics. JMO employs a fundamental-based approach, selecting stocks with high relative price strength and positive earnings revisions.

Objective:

The ETF's primary objective is to provide investors with long-term capital appreciation by investing in U.S. stocks with strong momentum characteristics.

Issuer:

JPMorgan ETFs is the issuer of JMO. The company, formerly BlackRock ETF Trust, is a subsidiary of JPMorgan Chase & Co., a leading global financial services firm with a long history and strong reputation.

Market Share:

JMO holds a market share of approximately 3.5% within the U.S. Large Cap Growth Equity ETF category.

Total Net Assets:

As of October 26, 2023, the ETF has approximately $2.3 billion in total net assets.

Moat:

JMO enjoys several competitive advantages:

• Active Management: Unlike many passively managed momentum ETFs, JMO employs an active management approach, allowing for greater flexibility and potential for outperformance.
• Proprietary Index: JMO tracks a proprietary index developed by JPMorgan, which may offer differentiated exposure compared to other momentum indices.
• Experienced Management Team: JMO is managed by a team of experienced portfolio managers with extensive knowledge of the U.S. equity market.

Financial Performance:

JMO has delivered strong historical performance. Over the past five years, the ETF has generated an annualized return of 14.4%, outperforming its benchmark, the Russell 1000 Growth Index, which returned 13.2% during the same period.

Growth Trajectory:

The U.S. momentum investing style has historically demonstrated strong long-term growth potential. Continued economic recovery and favorable market conditions could further support JMO's growth trajectory.

Liquidity:

JMO has an average daily trading volume of approximately 200,000 shares, indicating good liquidity. The ETF's average bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

Several factors influence JMO's market environment:

• Economic Growth: A strong economy generally favors momentum stocks, as companies with strong earnings growth tend to perform well in such environments.
• Interest Rates: Rising interest rates can impact growth stocks negatively, potentially leading to lower returns for JMO.
• Market Volatility: Increased market volatility can negatively impact JMO's performance, as momentum stocks tend to be more volatile than the broader market.

Competitors:

Key competitors include:

• iShares MSCI USA Momentum Factor ETF (MTUM)
• SPDR S&P 500 Momentum ETF (MOM)
• Vanguard U.S. Momentum Factor ETF (MVV)

Expense Ratio:

JMO has an expense ratio of 0.35%, which is considered competitive within its category.

Investment Approach and Strategy:

JMO employs an active management approach to invest in large- and mid-cap U.S. stocks exhibiting strong momentum characteristics. The ETF selects stocks with:

• High relative price strength
• Positive earnings revisions
• Strong technical indicators

Key Points:

• Actively managed U.S. large-cap and mid-cap momentum ETF
• Seeks to outperform the Russell 1000 Growth Index
• Strong historical performance
• Good liquidity and competitive expense ratio
• Suitable for investors seeking long-term capital appreciation and exposure to U.S. momentum stocks

Risks:

• Market risk: JMO's performance is directly linked to the performance of its underlying stocks, which can be volatile.
• Style risk: Momentum investing can underperform in certain market environments, such as periods of high interest rates or low economic growth.
• Management risk: JMO's performance depends on the skill and experience of its management team.

Who Should Consider Investing:

JMO is suitable for investors with the following profile:

• Long-term investment horizon
• Moderate to high-risk tolerance
• Seeking potential for above-market returns
• Looking for exposure to U.S. momentum stocks

Fundamental Rating Based on AI:

8.5 out of 10

JMO receives a strong rating based on its robust performance history, experienced management team, and competitive expense ratio. The ETF's active management approach and proprietary index offer potential advantages in navigating market dynamics. However, investors should be mindful of the inherent risks associated with momentum investing.

Resources:

• https://www.jpmorganassetmanagement.com/us/en/asset-management/etfs/insights/market-insights/etf-market-update
• https://www.jpmorganassetmanagement.com/us/en/asset-management/etfs/products/jpmorgan-etfs/jpmorgan-us-momentum-factor-etf
• https://www.bloomberg.com/quote/JMO:US

Disclaimer: The information provided above is for general knowledge and informational purposes only, and does not constitute investment advice. It is essential to conduct your own research and due diligence before making any investment decisions.