JPMorgan BetaBuilders Intl Eq ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and an underweight in momentum exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

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Moelis

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Rogers

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Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. JPMorgan BetaBuilders Intl Eq ETF earns an Above Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. 

The investment strategy as stated in the fund's prospectus is:  The investment seeks investment results that closely correspond, before fees and expenses, and to the performance of the Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM.  The fund will invest at least 80% of its assets in securities included in the underlying index." The underlying index is a free float adjusted market capitalization weighted index which consists of equity securities from developed countries or regions. 

 The portfolio has allocations in its top two sectors, healthcare and real estate, that are similar to the category. The sectors with low exposure compared to category peers are technology and energy, with technology underweighting the average portfolio by 2.8 percentage points of assets and energy similar to the average. The strategy owns 816 securities and invests 15.5% of assets in its top 10 holdings, similar to the category average. And finally, in terms of portfolio turnover, on a year-over-year basis, 5% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

JPMorgan’s  team is comparable to peers, resulting in an Average People Pillar rating. There are four managers listed on the fund: Michael Loeffler, Nicholas D’Eramo, Oliver Furby, Alex Hamilton. The team is well equipped, with an average of 12 years of portfolio management experience. Together, they manage a total of eight strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Average

People

A well-resourced, thoughtful, and disciplined steward of client assets, JPMorgan Asset Management maintains an Above Average Parent rating.
As of 2022, this investment stalwart manages more than USD 2.5 trillion in AUM. Composed of various global cohorts and diverse asset classes, the firm has more tightly integrated its capabilities in recent years, notably through the development of proprietary analytical and risk systems. Investment teams are robustly staffed and helmed by seasoned contributors. The firm’s strategies tend to produce reliable portfolios, and several flagship offerings are Morningstar Medalists. Manager incentives align with fundholders'; compensation reflects longer-term performance factors, and portfolio managers invest in the firm’s strategies as part of their compensation plans. 
The firm’s funds tend to be well-priced, but they aren’t as competitive as many highly regarded peers of similar scale. Recent product launches include thematic and single-country strategies, both of which carry the potential for volatile performance and flows, along with misuse by investors. The firm remains intrepid when it comes to developing an environmental, social, and governance-focused framework and continues to move into other areas such as direct indexing through its 55iP acquisition and China through its joint venture, but these complicated initiatives take time to assess any real and lasting effect.

Parent

JPMorgan BetaBuilders International Equity ETF

BBIN tracks a developed countries ex-North America index of large- and mid-cap equities that are selected and weighted by market cap.

JPMorgan BetaBuilders International Equity ETF is a low-cost ETF with $3.75 billion in assets under management. BBIN tracks the Morningstar Developed Markets ex-North America Target Market Exposure Index and has exposure to 28 countries and 14 sectors. Along with exploring the BBIN ETF, I compare it to another ETF from the same manager, the JPMorgan International Research Enhanced Equity ETF (JIRE).

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