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

Looking for broad exposure to the Small Cap Blend segment of the US equity market? You should consider the JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE), a passively managed exchange traded fund launched on 11/15/2016.The fund is sponsored by J.P. Morgan. It has amassed assets over $517 million, making it one of the average sized ETFs attempting to match the Small Cap Blend segment of the US equity market.Why Small Cap BlendSmall cap companies have market capitalization below $2 billion. They usually have higher potential than large and mid cap companies with stocks but higher risk.Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.29%, putting it on par with most peer products in the space.It has a 12-month trailing dividend yield of 1.66%.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 Industrials sector--about 12.70% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Solaris Energy (SEI) accounts for about 0.36% of total assets, followed by Idt Corp Common Stock (IDT) and Cal-Maine Foods Inc (CALM).The top 10 holdings account for about 3.32% of total assets under management.Performance and RiskJPSE seeks to match the performance of the Russell 2000 Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Small Cap Equity Index utilizes a rules-based approach that combines risk-based portfolio construction with multi-factor security selection, including value, quality and momentum factors.The ETF has added about 0.41% so far this year and was up about 13.60% in the last one year (as of 02/10/2025). In the past 52-week period, it has traded between $42.06 and $51.70.The ETF has a beta of 1.14 and standard deviation of 20.52% for the trailing three-year period. With about 560 holdings, it effectively diversifies company-specific risk.AlternativesJPMorgan Diversified Return U.S. Small Cap 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, JPSE is a good option for those seeking exposure to the Style Box - Small Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.The iShares Russell 2000 ETF (IWM) and the iShares Core S&P Small-Cap ETF (IJR) track a similar index. While iShares Russell 2000 ETF has $73.49 billion in assets, iShares Core S&P Small-Cap ETF has $88.68 billion. IWM has an expense ratio of 0.19% and IJR charges 0.06%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are 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. Small Cap Equity ETF (JPSE): ETF Research Reports Cal-Maine Foods, Inc. (CALM): Free Stock Analysis Report iShares Russell 2000 ETF (IWM): ETF Research Reports iShares Core S&P Small-Cap ETF (IJR): ETF Research Reports IDT Corporation (IDT): Free Stock Analysis Report Solaris Energy Infrastructure, Inc. (SEI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks