JPMorgan BetaBuilders US Equity ETF

BBUS

Market cap $5.55B

JPMorgan BetaBuilders U.S. Equity ETF is a passively managed vehicle with a wafer-thin expense ratio of 0.02%. Despite its microscopic ER, BBUS has underperformed IVV since its inception in 2019, delivering higher volatility and a deeper maximum drawdown. Regarding the factor triad of value, growth, and quality, it does not have advantages significant enough for a Buy rating.

JPMorgan BetaBuilders U.S. Equity ETF invests in approximately 550 large-cap and mid-cap U.S. stocks, covering about 85% of the total U.S. equity market capitalization. With a low expense ratio of 0.02%, BBUS provides a cost-effective option compared to many S&P 500 index funds. BBUS offers greater diversification than the S&P 500, with a higher allocation to mid-cap stocks and a lower concentration risk in its top holdings.

Here are the six keys to building a robust and healthy ETF portfolio that could offer capital appreciation as well as downside protection.

Passive investing outperforms active, focusing on fees among similar passive funds. JPMorgan BetaBuilders U.S. Equity ETF (BBUS) offers core equity exposure at a low cost of 0.02% expense ratio. BBUS replicates the U.S. equity market sector mix, with a heavy tilt towards Information Technology, Financials, Healthcare, and Consumer Discretionary.

This article provides sector metrics in the S&P 500 index. JPMorgan BetaBuilders U.S. Equity ETF tracks an index very close to the S&P 500 and has a lower fee. Energy and real estate have good value and quality scores, whereas technology and industrials are the most overvalued sectors.

Blended large-cap equity funds are increasingly attractive for investors with a renewed risk appetite. JPMorgan BetaBuilders U.S. Equity ETF offers near-full index replication with low fees and comparable yields. The outlook for US growth equities is robust, supported by an improved economic outlook, projected earnings growth, and a potential pause in the Fed's rate cycle.