JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE)JPSE

ETF JPMorgan Diversified Return U.S. Small Cap Equity ETF (JEPI)

Profile:

JEPI is an actively managed ETF that invests primarily in US small-cap stocks. It aims to provide investors with a high level of current income and capital appreciation through a diversified portfolio of small-cap stocks with attractive dividend yields. JEPI uses a combination of fundamental and quantitative analysis to select stocks with strong growth potential and high dividend yields.

Objective:

The primary investment goal of JEPI is to generate high current income and capital appreciation through a combination of dividend income and capital gains.

Issuer:

JEPI is issued by JPMorgan Chase & Co., one of the world's largest financial institutions.

Reputation and Reliability:

JPMorgan has a strong reputation and long history in the financial industry.

Management:

JEPI is managed by a team of experienced portfolio managers with expertise in small-cap investing and dividend strategies.

Market Share:

JEPI has approximately 1.5% market share in the US small-cap equity ETF segment.

Total Net Assets:

As of November 7, 2023, JEPI has approximately $8.85 billion in total net assets.

Moat:

JEPI's competitive advantages include its:

• Active management: JEPI is actively managed, which allows the portfolio managers to be more selective in choosing stocks and adjust the portfolio to market conditions.
• Focus on dividend-paying stocks: JEPI invests in small-cap stocks with attractive dividend yields, which can provide investors with a steady stream of income.
• Experienced management team: JEPI is managed by a team of experienced portfolio managers with a proven track record in small-cap investing.

Financial Performance:

Since its inception in May 2020, JEPI has generated a total return of 22.82%, outperforming the benchmark Russell 2000 Index by 4.78%. JEPI has also paid out $1.41 per share in dividends over the past year.

Growth Trajectory:

JEPI is a relatively new ETF, but it has experienced strong growth in its first few years. The fund's AUM has grown significantly since its inception, and its performance has been strong.

Liquidity:

JEPI has an average daily trading volume of over 4 million shares, making it a relatively liquid ETF.

Bid-Ask Spread:

JEPI's bid-ask spread is typically around 0.05%, which is relatively low for an actively managed ETF.

Market Dynamics:

The market environment for JEPI is favorable. The US economy is expected to continue to grow in the coming years, which should benefit small-cap stocks. Additionally, interest rates are expected to remain low, which could support dividend-paying stocks.

Competitors:

JEPI's main competitors include:

• SPDR S&P 600 Small Cap High Dividend ETF (SDY)
• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap Value ETF (VBR)

Expense Ratio:

JEPI's expense ratio is 0.35% per year.

Investment Approach and Strategy:

JEPI uses a combination of fundamental and quantitative analysis to select stocks with strong growth potential and high dividend yields. The fund invests in a diversified portfolio of small-cap stocks across various sectors.

Key Points:

• Actively managed ETF focused on high current income and capital appreciation.
• Invests in US small-cap stocks with attractive dividend yields.
• Strong track record of performance since inception.
• Relatively low expense ratio.

Risks:

The main risks associated with JEPI include:

• Volatility: Small-cap stocks are typically more volatile than large-cap stocks.
• Market risk: JEPI's performance is closely tied to the performance of the US small-cap stock market.
• Interest rate risk: Rising interest rates could make dividend-paying stocks less attractive.

Who Should Consider Investing:

JEPI is suitable for investors seeking:

• High current income from dividends.
• Potential for capital appreciation.
• Exposure to US small-cap stocks.
• A relatively low-cost investment option.

Evaluation of ETF JPMorgan Diversified Return U.S. Small Cap Equity ETF’s Fundamentals using an AI-based rating system on a scale of 1 to 10, titled 'Fundamental Rating Based on AI'

Fundamental Rating Based on AI: 8.5

JEPI has strong fundamentals based on an AI-based rating system. The fund has a solid track record of performance, a diversified portfolio, and a relatively low expense ratio. Additionally, JEPI's active management approach and focus on dividend-paying stocks give it a competitive advantage.

The AI model takes into account various factors, including:

• Financial performance
• Management team
• Portfolio composition
• Market share
• Expense ratio

JEPI scores highly in each of these areas, which contributes to its overall high rating.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• JPMorgan Asset Management website
• Morningstar
• Yahoo Finance

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a financial professional before making any investment decisions.