Read This Before Buying JPMorgan’s Active Value ETF | JAVA

Core Insights - The JPMorgan Active Value ETF (JAVA) employs fundamental research to identify quality companies trading below their intrinsic value, distinguishing itself from passive index replication strategies [2][3] - JAVA's active management approach, with a portfolio turnover of 111%, allows for dynamic repositioning in response to emerging opportunities, contrasting with the constraints of passive funds [5][6] Portfolio Composition - JAVA targets value exposure with a significant tilt towards financials (20%) and healthcare (16.4%), while maintaining lower exposure to technology (9%) [3] - The fund's strategy focuses on companies like Wells Fargo and Bank of America, which exhibit operational improvements but have not yet seen corresponding valuation increases [4] Performance Metrics - With $5.2 billion in assets under management, JAVA has outperformed the S&P 500 by nearly 2 percentage points during the volatile start of 2026, showcasing the effectiveness of its active management strategy [5][8] - The fund offers a 1.35% dividend yield, with quarterly distributions increasing since inception, indicating strong cash generation capabilities within its portfolio [9] Cost Structure - JAVA charges an annual fee of 0.44%, significantly higher than the 0.04% charged by passive alternatives, reflecting the costs associated with its active management approach [6]