JPMorgan US Quality Factor ETF

JQUA

Market cap $7.71B

The S&P 500‘s 2.7% drop on Friday expose its tech-heavy tilt. Top 10 stocks represent 37% of the index's weight, while the Magnificent 7 account for about 35% of YTD gains.

Goldman Sachs warns of rising AI bubble risks, making diversification with equal-weight, value and quality ETFs a smart defensive move.

Mega-cap tech stocks are driving market gains, but their dominance creates significant concentration risk in major ETFs like SCHG. SCHG's top three holdings—Nvidia, Microsoft, and Apple—make up over 30% of its portfolio, undermining diversification benefits. JQUA offers similar exposure to leading tech names but with much better diversification, as no single stock exceeds 2.5% of the portfolio.

Some investors are worried that the stock market is set up for a tech-driven decline.

JQUA offers a quality-focused, rules-based approach with strong diversification and low concentration risk, making it a refreshing alternative to megacap-heavy ETFs. While JQUA's total returns closely track SPY, its main advantage lies in mitigating drawdowns during market downturns, though not consistently outperforming peers. The ETF's sector diversification is only marginally better than SPY, but its low expense ratio and methodology provide valuable portfolio diversification.

As policy risks rise and stagflation fears grow, investors turn to defensive ETFs to weather a volatile 2025 market.

Investors turn to high-quality ETFs like QUAL, SPHQ and JQUA to navigate volatility and preserve value amid rising geopolitical risks.

Fed flags long-term inflation risks as tariff chaos and debt woes fuel investor unease; value and quality ETFs emerge as safer long-term plays.

JQUA offers a diversified portfolio of high-quality mega, large, and mid-cap stocks with balanced sector exposure, outperforming the market in bull and bear cycles. The ETF boasts a lower expense ratio and robust dividend growth, with a 25% increase in the past year and a five-year CAGR of 7.6%. JQUA's risk is mitigated by its blend of growth and value stocks, trading at attractive valuations, making it ideal for moderate risk tolerance investors.

We highlight some defensive investment strategies for investors amid the ongoing chaos.