Should JPMorgan Diversified Return U.S. Equity ETF (JPUS) Be on Your Investing Radar?

The JPMorgan Diversified Return U.S. Equity ETF (JPUS) was launched on 09/29/2015, and is a passively managed exchange traded fund designed to offer broad exposure to the Large Cap Blend segment of the US equity market.

The fund is sponsored by J.P. Morgan. It has amassed assets over $372.09 million, making it one of the average sized ETFs attempting to match the Large Cap Blend segment of the US equity market.

Why Large Cap Blend

Large cap companies typically have a market capitalization above $10 billion. Overall, they are usually a stable option, with less risk and more sure-fire cash flows than mid and small cap companies.

Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Annual operating expenses for this ETF are 0.18%, making it one of the cheaper products in the space.

It has a 12-month trailing dividend yield of 2.22%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Consumer Staples sector--about 13.90% of the portfolio. Healthcare and Industrials round out the top three.

Looking at individual holdings, Jpmorgan Us Govt Mmkt Fun accounts for about 0.58% of total assets, followed by Capital One Financial (COF) and Nvidia Corp Common Stock (NVDA).

The top 10 holdings account for about 4.51% of total assets under management.

Performance and Risk

JPUS seeks to match the performance of the Russell 1000 Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Equity Index utilizes a rules-based approach combining risk-weighted portfolio construction with multi-factor security screening based on value, quality and momentum factors.

The ETF has added roughly 5.27% so far this year and it's up approximately 8.45% in the last one year (as of 07/22/2025). In the past 52-week period, it has traded between $102.80 and $123.77.

The ETF has a beta of 0.86 and standard deviation of 14.56% for the trailing three-year period, making it a medium risk choice in the space. With about 370 holdings, it effectively diversifies company-specific risk.

Alternatives

JPMorgan Diversified Return U.S. Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, JPUS is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market. There are other additional ETFs in the space that investors could consider as well.

The SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO) track a similar index. While SPDR S&P 500 ETF has $646.63 billion in assets, Vanguard S&P 500 ETF has $694.54 billion. SPY has an expense ratio of 0.09% and VOO charges 0.03%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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This article originally published on Zacks Investment Research (zacks.com).

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