JPMorgan US Value Factor ETF

JVAL

Market cap $555M

JVAL offers excellent and diversified exposure to large/mid-cap value stocks and is sector neutral with the Russell 1000 Index, meaning it's also about 30% in Technology. It has several strong features, including a 0.12% expense ratio, a 14.18x forward P/E ratio, and a solid track record against the broad Russell 1000 Value Index. However, its sector-neutral strategy and higher beta indicates it won't offer as much downside protection compared to most of its peers. In addition, its growth and quality statistics weren't impressive.

JVAL offers exposure to inexpensive U.S. equities, mostly from mega- and large-cap echelons, while maintaining sector proportions similar to those of the Russell 1000. JVAL is sporting a healthy earnings yield despite IT being its key sector. Quality is healthy, but growth characteristics are lackluster. JVAL's past performance is marred by its inability to keep pace with IVV and IWB as it captured too much downside.

JPMorgan U.S. Value Factor ETF has a smarter strategy than most passive value funds: stock valuation is assessed relative to sector peers.

JVAL is a passively managed fund with a focus on inexpensive players, mostly selected from the Russell 1000 index. Its past performance was mixed as it beat IWD, yet it was unable to keep pace with the market and a few peers. It is worth shortlisting JVAL since for a basket with a tilt toward mega-caps, JVAL has a meaningful earnings yield that comes with a mostly compelling quality story.