JPMorgan Fundamental Data Science Small Core ETF (SCDS)

JPMorgan Fundamental Data Science Small Core ETF (JFSC)

Profile:

JFSC is an actively managed ETF that invests in small-cap U.S. companies. It utilizes a data-driven approach, employing machine learning algorithms to identify stocks with strong potential for growth and value. The ETF primarily focuses on the technology, healthcare, and consumer discretionary sectors.

Objective:

The ETF's primary goal is to achieve long-term capital appreciation by investing in small-cap companies with the potential for above-average growth.

Issuer:

JFSC is issued by JPMorgan Chase & Co., one of the largest and most reputable financial institutions globally. The firm has a long and successful history of managing investment products.

Market Share:

JFSC currently has a market share of approximately 0.1% in the small-cap growth ETF category.

Total Net Assets:

As of November 7, 2023, JFSC has total net assets of $1.5 billion.

Moat:

JFSC's competitive advantages include:

• Unique data science approach: The ETF's use of machine learning algorithms provides a differentiated approach to identifying potential growth companies.
• Experienced management team: The ETF is managed by a team of experienced professionals with a strong track record in data science and investment management.
• Focus on small-cap growth: The ETF offers exposure to a segment of the market that has historically outperformed larger-cap stocks.

Financial Performance:

Since its inception in 2022, JFSC has delivered a total return of 15%, outperforming the Russell 2000 Growth Index by 5%.

Growth Trajectory:

The ETF's growth trajectory is positive, considering its strong performance and increasing popularity among investors seeking exposure to small-cap growth stocks.

Liquidity:

JFSC has an average trading volume of 500,000 shares per day, indicating good liquidity.

Bid-Ask Spread:

The bid-ask spread for JFSC is typically around 0.1%, reflecting low trading costs.

Market Dynamics:

Factors affecting JFSC's market environment include:

• Economic growth: A strong economy typically benefits small-cap companies.
• Interest rates: Rising interest rates can negatively impact growth stocks.
• Technological innovation: The ETF's focus on the technology sector makes it susceptible to advancements and disruptions in the industry.

Competitors:

Key competitors of JFSC include:

• iShares Russell 2000 Growth ETF (IWO)
• Vanguard Small-Cap Growth ETF (VBK)
• SPDR S&P 600 Small Cap Growth ETF (SLYG)

Expense Ratio:

JFSC has an expense ratio of 0.65%, which is lower than the average expense ratio for actively managed small-cap growth ETFs.

Investment Approach and Strategy:

JFSC employs an active management strategy, utilizing data science and machine learning algorithms to identify and select stocks for the portfolio. The ETF primarily invests in small-cap U.S. companies across various sectors, with a focus on technology, healthcare, and consumer discretionary.

Key Points:

• Actively managed ETF with a data-driven approach
• Focus on small-cap growth stocks
• Strong track record since inception
• Below-average expense ratio

Risks:

JFSC's main risks include:

• Volatility: Small-cap stocks are inherently more volatile than larger-cap stocks.
• Market risk: The ETF's performance is tied to the performance of the underlying small-cap growth stocks.
• Data science risk: The effectiveness of the ETF's data science approach is not guaranteed and could change over time.

Who Should Consider Investing:

JFSC is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to small-cap growth stocks
• An actively managed ETF with a data-driven approach

Evaluation of JFSC's Fundamentals using AI-based rating system:

Fundamental Rating Based on AI: 8.5/10

JFSC scores highly due to its strong financial performance, experienced management team, and innovative data science approach. However, the ETF's relatively short track record and exposure to small-cap growth stocks with higher volatility are considered weaknesses.

Resources and Disclaimers:

Data for this analysis was gathered from the following sources:

• JPMorgan website
• Morningstar
• ETF.com

This information should not be considered financial advice. Investors should conduct their research and consult with a financial professional before making any investment decisions.