JPMorgan Diversified Return U.S. Equity ETF (JPUS)

ETF JPMorgan Diversified Return U.S. Equity ETF (JDD)

Profile:

JDD is an actively managed ETF that seeks to generate positive absolute returns over a full market cycle through a diversified portfolio of U.S. equities. It invests across various sectors, market capitalizations, and investment styles using a quantitative model.

Objective:

The primary objective of JDD is to outperform the S&P 500 Index over a full market cycle with lower volatility.

Issuer:

JPMorgan Chase & Co. (JPM)

Reputation and Reliability:

JPMorgan Chase is a leading global financial institution with a strong reputation and long track record in the investment management industry.

Management:

The ETF is managed by a team of experienced investment professionals with expertise in quantitative analysis and portfolio construction.

Market Share:

JDD has a relatively small market share within the U.S. equity ETF space.

Total Net Assets:

As of November 10, 2023, JDD has approximately $1.5 billion in assets under management.

Moat:

JDD's competitive advantage lies in its active management approach and quantitative model, which aims to identify and invest in undervalued stocks with potential for growth.

Financial Performance:

Since its inception in 2018, JDD has outperformed the S&P 500 Index on a risk-adjusted basis. However, past performance is not indicative of future results.

Growth Trajectory:

The ETF is relatively new, and its growth trajectory is uncertain. However, the increasing demand for actively managed ETFs and JPMorgan's strong reputation suggest potential for future growth.

Liquidity:

JDD has a moderate average trading volume, indicating reasonable liquidity.

Bid-Ask Spread:

The bid-ask spread is relatively tight, suggesting low transaction costs.

Market Dynamics:

The ETF's market environment is influenced by various factors, including economic growth, interest rates, and market sentiment.

Competitors:

JDD competes with other actively managed U.S. equity ETFs, such as VTI, IVV, and SPY.

Expense Ratio:

The expense ratio for JDD is 0.55%.

Investment Approach and Strategy:

JDD employs a quantitative model to identify and invest in undervalued stocks across various sectors and market capitalizations. The portfolio is actively managed and rebalanced regularly.

Key Points:

• Actively managed ETF seeking to outperform the S&P 500 Index.
• Diversified portfolio of U.S. equities.
• Quantitative model and experienced management team.
• Moderate liquidity and low transaction costs.

Risks:

• Market risk associated with U.S. equities.
• Active management risk due to potential for underperformance.
• Volatility risk due to the ETF's active management approach.

Who Should Consider Investing:

JDD may be suitable for investors seeking:

• Active management exposure with a focus on outperformance.
• Diversification across various sectors and market capitalizations.
• A lower-cost alternative to actively managed mutual funds.

Fundamental Rating Based on AI:

Based on an AI-based analysis, JDD receives a 7 out of 10 rating. This rating considers the ETF's financial health, market position, and future prospects. The analysis highlights the ETF's strong management team, quantitative model, and competitive expense ratio. However, the relatively small market share and short track record are considered limitations.

Resources and Disclaimers:

This analysis utilizes data from the following sources:

• JPMorgan Asset Management website
• ETF.com
• Morningstar
• Bloomberg

Disclaimer:

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