Should JPMorgan Diversified Return U.S. Equity ETF (JPUS) Be on Your Investing Radar?

Launched on 09/29/2015, the JPMorgan Diversified Return U.S. Equity ETF (JPUS) is a passively managed exchange traded fund designed to provide a broad exposure to the Large Cap Blend segment of the US equity market.The fund is sponsored by J.P. Morgan. It has amassed assets over $413.15 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.Why Large Cap BlendLarge cap companies typically have a market capitalization above $10 billion. They tend to be stable companies with predictable cash flows and are usually less volatile than mid and small cap companies.Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.18%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 2.10%.Sector Exposure and Top HoldingsWhile ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Consumer Staples sector--about 14.40% of the portfolio. Healthcare and Utilities round out the top three.Looking at individual holdings, Philip Morris (PM) accounts for about 0.50% of total assets, followed by Ugi Corp Common Stock (UGI) and Welltower Inc (WELL).The top 10 holdings account for about 4.74% of total assets under management.Performance and RiskJPUS seeks to match the performance of the Russell 1000 Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Equity Index utilizes a rules-based approach combining risk-weighted portfolio construction with multi-factor security screening based on value, quality and momentum factors.The ETF has gained about 1.09% so far this year and is up about 8.30% in the last one year (as of 03/18/2025). In the past 52-week period, it has traded between $105.76 and $123.77.The ETF has a beta of 0.96 and standard deviation of 14.70% for the trailing three-year period, making it a medium risk choice in the space. With about 365 holdings, it effectively diversifies company-specific risk.AlternativesJPMorgan Diversified Return U.S. Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, JPUS is a sufficient option for those seeking exposure to the Style Box - Large Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The Vanguard S&P 500 ETF (VOO) and the SPDR S&P 500 ETF (SPY) track a similar index. While Vanguard S&P 500 ETF has $595.62 billion in assets, SPDR S&P 500 ETF has $611.13 billion. VOO has an expense ratio of 0.03% and SPY charges 0.09%.Bottom-LineRetail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Diversified Return U.S. Equity ETF (JPUS): ETF Research Reports Philip Morris International Inc. (PM): Free Stock Analysis Report UGI Corporation (UGI): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports Vanguard S&P 500 ETF (VOO): ETF Research Reports Welltower Inc. (WELL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks