Is JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME) a Strong ETF Right Now?

Core Insights - The JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME) offers investors exposure to the mid-cap blend category, utilizing a rules-based approach to combine risk-based portfolio construction with multi-factor security selection [1][6]. Fund Overview - JPME was launched on May 11, 2016, and has accumulated over $372.98 million in assets, positioning it as an average-sized ETF in its category [1][5]. - The fund aims to match the performance of the Russell Midcap Diversified Factor Index before fees and expenses [5]. Investment Strategy - JPME employs non-cap weighted strategies, focusing on fundamental characteristics to select stocks with better risk-return performance [3][4]. - The fund's annual operating expenses are 0.24%, which is competitive within its peer group [7]. Sector Exposure - The ETF has a significant allocation in the Industrials sector, comprising approximately 12% of the portfolio, followed by Healthcare and Consumer Staples [8]. - The top 10 holdings account for about 4.96% of total assets, with Tapestry Inc Common (TPR) being the largest individual holding at 0.55% [9]. Performance Metrics - Year-to-date, JPME has increased by approximately 6.41%, and it has risen about 7.16% over the past 12 months as of September 1, 2025 [11]. - The fund has a beta of 0.93 and a standard deviation of 16.09% over the trailing three-year period, indicating effective diversification of company-specific risk [11]. Alternatives - Other ETFs in the mid-cap blend space include the Vanguard Mid-Cap ETF (VO) and the iShares Core S&P Mid-Cap ETF (IJH), which have significantly larger asset bases and lower expense ratios [12][13].