JPMorgan US Tech Leaders ETF

JTEK

Market cap $3.16B

Thematic ETFs tied to trends like artificial intelligence and quantum computing have drawn billions in new money into the market, and the portfolios have been rewarding investors with big gains. But ETF Action's Mike Akins warns that investors need to be mindful of significant risks within these newer portfolio categories, such as similarly branded AI funds, where performance differs by as much as 60% this year.

JPMorgan's ETF lineup has grown significantly over the years, and passive investors have taken notice.

On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discusses the JPMorgan U.S. Tech Leaders ETF (JTEK) with Chuck Jaffe of Money Life. The pair discusses several topics related to the fund to give investors a deeper understanding of the ETF.

VettaFi's Head of Research Todd Rosenbluth discussed the JPMorgan US Tech Leaders ETF (JTEK) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

I initiate coverage of JPMorgan U.S. Tech Leaders ETF with a buy rating due to its fundamentally strong, innovative tech portfolio. JTEK's active strategy targets 63 tech leaders across sectors, focusing on disruptive technologies and underappreciated growth opportunities for high conviction. The ETF's strong price momentum, robust quant rating, and solid liquidity underscore its potential for continued outperformance despite higher volatility and expense ratio.

JPMorgan U.S. Tech Leaders ETF is an actively managed fund with a 0.65% expense ratio, focusing on high-growth technology stocks. JTEK's portfolio is heavily tilted towards growth stocks, making it likely to outperform in bull markets but vulnerable during downturns. The fund's valuation is significantly higher than its peers and the broader market, posing a higher downside risk in market corrections.

JTEK uses an actively managed approach to target innovative tech companies across market capitalizations, focusing on firms with underappreciated growth potential. The fund includes only 61 holdings, enabling concentrated exposure to high-conviction investments. JTEK has outperformed prominent peers like the Nasdaq-100 ETF, the Technology Select Sector ETF, and the Communication Services Sector ETF over a 1-year look-back.

JPMorgan U.S. Tech Leaders ETF is a new actively managed fund that focuses on investing in the technology sector. The fund is managed by experienced portfolio managers and aims to identify high-conviction opportunities in technology-driven disruption. The JTEK ETF has outperformed the Select Sector SPDR Technology ETF XLK in its first six months, but its track record is still too short to draw conclusions.

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JTEK is an actively managed vehicle with a pronounced growth tilt focused on tech- and tech-enabled companies. JTEK has had a spectacular run since its inception in October 2023, beating not only the market and QQQ but also a few disruptive tech-focused peers.