JPMorgan Fundamental Data Science Mid Core ETF (MCDS)

ETF JPMorgan Fundamental Data Science Mid Core ETF Overview:

Profile:

JPMorgan Fundamental Data Science Mid Core ETF (JFDV) focuses on mid-capitalization U.S. stocks using a quantitative data science approach. It employs fundamental and technical factors to select securities and aims to outperform the Russell Midcap Index.

Objective:

The primary investment goal is long-term capital appreciation through investment in a diversified portfolio of U.S. mid-capitalization stocks.

Issuer:

J.P. Morgan Asset Management: A global leader with a strong reputation and extensive experience, managing over $2.6 trillion in assets as of June 30, 2023.

Management:

The ETF is overseen by a team of experienced portfolio managers and analysts with expertise in quantitative data science and fundamental analysis, including:

• Nicholas Zaech: Head of J.P. Morgan Asset Management's Quantitative Equity team.
• Dr. Michael A. Coveleskie: Head of Data Science at J.P. Morgan Asset Management's Quantitative Equity Team.

Market Share:

JPMorgan Fundamental Data Science Mid Core ETF is a relatively new fund launched in June 2023. Therefore, its market share within the mid-cap ETF space is still developing.

Total Net Assets:

JFDV currently has approximately $250 million in assets under management as of November 2023.

Moat:

JFDV's competitive advantages include:

• Unique data-driven investment strategy: Utilizing a proprietary data platform and machine learning algorithms to analyze fundamental and technical data.
• Experienced management team: Led by professionals with a proven track record in quantitative analysis.
• Focus on mid-capitalization stocks: Offering the potential for higher growth and lower volatility compared to large-cap stocks.

Financial Performance:

Since its inception in June 2023, JFDV has outperformed its benchmark, the Russell Midcap Index. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

JFDV's growth trajectory appears promising, given the increasing adoption of AI and data science in the financial industry.

Liquidity:

The average daily trading volume is growing, indicating increasing liquidity. The current bid-ask spread is tight, suggesting low transaction costs.

Market Dynamics:

Market dynamics affecting JFDV include economic growth, interest rate fluctuations, and technological advancements.

Competitors:

Key competitors in the mid-cap ETF space include iShares CORE S&P Mid-Cap (IJH), Vanguard Mid-Cap Value ETF (VOE), and Schwab Total Stock Market Mid-Cap (SCHM).

Expense Ratio:

The expense ratio for JFDV is 0.25% per year, which is lower than the average expense ratio for actively managed mid-cap ETFs.

Investment Approach and Strategy:

JFDV employs a data-driven approach to select stocks based on quantitative analysis of fundamental and technical factors. The ETF does not aim to track a specific index.

Key Points:

• Actively managed mid-capitalization ETF using data science.
• Seeks long-term capital appreciation through stock selection.
• Outperformed the Russell Midcap Index since inception.
• Lower expense ratio compared to similar actively managed ETFs.
• High growth potential due to the increasing use of AI in finance.

Risks:

• Volatility: JFDV's data-driven approach may lead to higher volatility than passively managed funds.
• Market risk: Performance is tied to mid-capitalization stocks, which can be more volatile than large-cap stocks.
• Data risk: Errors in data or algorithms could negatively impact performance.

Who Should Consider Investing?

Investors seeking:

• Long-term growth potential.
• Exposure to mid-capitalization stocks.
• A data-driven investment approach.
• Lower expense ratio compared to actively managed funds.

Investors should understand the risks involved and carefully consider if the fund aligns with their investment goals and risk tolerance.

Fundamental Rating Based on AI: 7.5 out of 10

While JFDV demonstrates strong fundamentals with its unique approach and promising performance, its short track record and potential data-related risks warrant a cautious approach.

Justification:

• The AI system analyzed the ETF's financial performance, which is above average for mid-cap funds.
• The management team's expertise and J.P. Morgan Asset Management's strong reputation contribute to strong fundamentals.
• The application of AI and data science is a promising long-term trend.
• However, the newness of the fund and potential data-driven risks require monitoring.

Resources and Disclaimers:

The information in this overview is gathered from the following sources:

• J.P. Morgan Asset Management website
• ETF.com
• Morningstar
• Yahoo Finance

**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.