JPMorgan BetaBuilders U.S. Small Cap Equity Fund

JPMorgan BetaBuilders U.S. Small Cap Equity Fund (BBSC) is an index ETF that tracks the Morningstar US Small Cap Target Market Exposure Extended Index. The index is a basket of several hundred smaller US companies, weighted by market value. Its 0.09% expense ratio is less than half the 0.19% average of similar funds and the 0.19% charged by iShares Russell 2000 ETF (IWM). Some Vanguard, iShares and SPDR small-cap funds still charge less.

• Over the year to Oct 27, 2026, BBSC returned +13.5%, 7th of 9 among similar funds.
• Its 5-year annualized return was +6.8%.
• Its worst full calendar year was 2022 (-19.8%); its best was 2023 (+20.1%).
• The deepest fall in its price history was 31% (Nov 8, 2021 to Jun 16, 2022), recovered by Oct 16, 2024.

As of Jul 31, 2026, the fund held 854 securities; the ten largest made up 3.87% of assets. It also reported 4.85% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $84.1M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +3.34%, +6.53%, -2.88%.

The fund follows an index built by Morningstar. Morningstar ranks US-traded stocks by free-float market value, which counts only the shares available for public trading. The index then takes the companies that fall between the 95th and 99th percentiles. That means it skips the largest companies and the very tiniest ones. Buffers meant to limit turnover can keep some mid-size companies in the index. As of January 30, 2026, the index held 738 stocks worth between $190.1 million and $9.2 billion each. Bigger companies get bigger weights, and the index and the fund rebalance quarterly.

JPMorgan aims to replicate the index, meaning it buys nearly every stock in roughly the same proportions. When that isn't practical, it can use "representative sampling" and hold a subset of stocks chosen to behave like the whole index. In either case, at least 80% of assets must stay in index stocks and small companies. The fund may put up to 10% in exchange-traded futures. As of July 31, 2026, it held a tiny Russell 2000 E-mini futures position alongside 854 holdings. Money is spread thin: the 10 largest positions made up just 3.87%, led by Corcept Therapeutics at 0.44%.

Because the fund is passive, it won't sell a struggling company unless the index drops it, and it won't move to cash when markets fall. Its portfolio turnover was 25%.

• BBSC charges 0.09% a year, versus an average of 0.19% for the similar funds below (6th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $115 over 10 years (assuming a 5% annual return).

It adds smaller US companies that a large-company core fund holds little of, but its swings have been larger than the broad market's.

BBSC adds small US companies to a portfolio, but the ride is rougher. The fund launched in November 2020, so it has no record from the 2008 crisis or the 2020 COVID crash. In the 2022 bear market it fell 26.4% from January 4 to June 16, 2022, and took 25 months to get back to that peak. Its deepest drop was 31%, from November 2021 to June 2022, and it took 28 months to recover. Its worst calendar year was 2022, at -19.71%. Anyone who had to sell shares for living costs in a year like that would have locked in losses.

Income is modest: the trailing yield was 1.07% as of October 27, 2026, paid quarterly. Costs are low. On the SEC's standard $10,000 example, fees total $115 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.