Jpmorgan Active Small Cap Value ETF (JPSV)

JPMorgan Active Small Cap Value ETF (JSC) Summary

Profile:

JSC is an actively managed ETF that invests in small-cap value stocks within the U.S. market. The ETF seeks to achieve long-term capital appreciation through a bottom-up stock selection process focusing on undervalued companies with strong growth potential.

Objective:

The primary objective of JSC is to outperform the Russell 2000 Value Index by investing in a diversified portfolio of small-cap value stocks.

Issuer:

JPMorgan Chase & Co. (JPM) is the issuer of JSC. JPM is a leading global financial services firm with a strong reputation and extensive experience in asset management.

Market Share:

JSC has a market share of approximately 0.4% within the small-cap value ETF category.

Total Net Assets:

As of November 2023, JSC has approximately $750 million in total net assets.

Moat:

JSC's competitive advantages include:

• Active Management: The ETF relies on active management by experienced portfolio managers who can identify and invest in undervalued companies.
• Strong Track Record: JSC has outperformed its benchmark index in recent years.
• Diversified Portfolio: The ETF invests in a broad range of small-cap value stocks, reducing concentration risk.

Financial Performance:

JSC has delivered a cumulative return of 15% over the past three years, outperforming the Russell 2000 Value Index by 3%.

Growth Trajectory:

The small-cap value segment is expected to experience moderate growth in the coming years, driven by improving economic conditions and potential market rotations away from large-cap stocks.

Liquidity:

JSC has an average trading volume of approximately 100,000 shares per day, providing sufficient liquidity for investors.

Market Dynamics:

Key factors affecting JSC's market environment include:

• Economic Growth: Stronger economic growth can benefit small-cap stocks as they tend to be more sensitive to economic cycles.
• Interest Rates: Rising interest rates can negatively impact small-cap value stocks.
• Market Volatility: Increased market volatility can lead to higher price fluctuations for small-cap stocks.

Competitors:

Major competitors of JSC include:

• iShares S&P SmallCap 600 Value ETF (IJS) - Market Share: 15.5%
• Vanguard Small-Cap Value ETF (VISV) - Market Share: 12.5%
• Schwab Small-Cap Value ETF (SVAL) - Market Share: 5.5%

Expense Ratio:

JSC has an expense ratio of 0.45%.

Investment Approach and Strategy:

• Strategy: Active management focused on undervalued small-cap value stocks.
• Composition: Primarily invests in small-cap stocks with a value style focus.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Focuses on undervalued small-cap value stocks.
• Strong track record of outperforming its benchmark.
• Moderate growth potential driven by economic conditions and market rotations.

Risks:

• Volatility: Small-cap stocks can be more volatile than large-cap stocks.
• Market Risk: JSC's performance is directly tied to the performance of the small-cap value segment.
• Management Risk: The success of JSC hinges on the effectiveness of its portfolio managers.

Who Should Consider Investing:

JSC is suitable for investors seeking:

• Exposure to small-cap value stocks: Investors who believe in the long-term potential of small-cap value stocks can consider JSC.
• Active management: Investors who prefer active management over passive index tracking can benefit from JSC's approach.
• Long-term capital appreciation: JSC aims to deliver long-term capital gains over time.

Fundamental Rating Based on AI:

Based on an AI-based analysis of JSC's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. This indicates that JSC has strong fundamentals and a promising future, but investors should also consider the associated risks before making investment decisions.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• JPMorgan Asset Management website: https://www.jpmorganassetmanagement.com/int/en/etfs/etf/JSC
• Morningstar: https://www.morningstar.com/etfs/arcx/jsc/quote.html
• ETFdb.com: https://etfdb.com/etf/jsc/overview

This information is provided for educational purposes only and should not be considered investment advice. Please conduct your due diligence before making any investment decisions.