JPMorgan BetaBuilders U.S. Tip 0-5 YrETF’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 sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's sensible investment philosophy merits a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in AA rated bonds and an overweight in government bonds compared with category peers. 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

JPMorgan BetaBuilders U.S. Tip 0-5 YrETF earns a High Process Pillar rating. Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. The leading factor in the rating is that this fund tracks an index. Historical data, like Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's five-year risk-adjusted success ratio of 57% also supports the process. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their relatively high success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's excellent risk-adjusted performance, as shown by its average 10-year Morningstar Rating of 3.3 stars, influences the rating as well.

The investment strategy as stated in the fund's prospectus is: 

The investment seeks investment results that closely correspond, before fees and expenses, to the performance of the ICE 0-5 Year US Inflation-Linked Treasury Index.  The fund seeks investment results that closely correspond, before fees and expenses, to the performance of the underlying index, which tracks the performance of US dollar denominated sovereign debt publicly issued by the US government in its domestic market with interest and principal payments tied to inflation, and with a remaining term to final maturity of less than or equal to five years. The fund will invest at least 80% of its assets in securities included in the underlying index.  

  The portfolio holds assets with a higher average surveyed credit quality of AAA, compared with the category average of A, and it holds no non-investment-grade assets, despite the average peers' 1%. Strategies that take on less credit risk can often shoulder more-adverse market conditions. In terms of interest-rate risk, compared with others in the Inflation-Protected Bond category, this fund maintains a lower average effective duration of 2.6 years compared to the category's 6.1 years. The shorter a strategy's duration, the less sensitive it is to shifts in interest rates. This fund, with a 2.6-year duration, is expected to gain 2.6% of its net asset value if interest rates drop by 1 percentage point, and vice versa.

High

Process

JPMorgan’s team is valuable but does not stand out as one of the industry's best, warranting an Average People Pillar rating. There are three managers listed on the fund: Naveen Kumar, Alvaro Quiros, Evan Olonoff. The team is inadequately equipped. Together, they average three years of portfolio management experience. Together, they manage a total of four strategies, with a Gold asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate. The team has faced turnover as of late, with Supreet Khandate leaving within the last two months. Even though it is a passive fund, high turnover can still hinder the effectiveness of the investment process. 

 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.

Above Average

Parent

JPMorgan BetaBuilders US TIPS 0-5 Year ETF

BBIP tracks a market value-weighted index of US Treasury Inflation-Protected Securities (TIPS) with 5 years or less until maturity. Constituents are selected using the same manner that they are weighted.

Jpmorgan Betabuilders Emerging Markets Equity ETF

JPMorgan High Yield Municipal ETF

JPMorgan Sustainable Municipal Income ETF

JPMorgan Asset Management has launched two new municipal bond ETFs on the New York Stock Exchange. The JPMorgan High Yield Municipal ETF (NYSE Arca: JMHI) invests in high yield munis exempt from federal income taxes.

JPMorgan Launches 2 New Municipal Bond ETFs

On Thursday, JPMorgan Asset Management announced the launch of two new ETFs. The JP Morgan BetaBuilders Emerging Markets Equity ETF (BBEM) and the JP Morgan BetaBuilders U.S. TIPS 0-5 Year ETF (BBIP) trade on the Cboe Global Markets.

News for JPMorgan BetaBuilders US TIPS 0-5 Year ETF ETF (BBIP)