JPMorgan Small & Mid Cap Enhanced Equity ETF

JPMorgan Small & Mid Cap Enhanced Equity ETF (JMEE) is an actively managed fund that held 655 US small- and mid-size company stocks as of June 30, 2026, and measures itself against the S&P 1000 Index. Within each sector, it leans modestly toward stocks its ranking system sees as undervalued, while keeping sector weights close to the market's. That approach costs 0.24% a year, more than double the 0.11% average of similar funds.

• Over the year to Oct 27, 2026, JMEE returned +16.8%, 1st of 9 among similar funds.
• Its worst full calendar year was 2025 (+7.7%); its best was 2023 (+18.1%).
• The deepest fall in its price history was 25.4% (Nov 25, 2024 to Apr 8, 2025), recovered by Dec 10, 2025.

As of Jun 30, 2026, the fund held 655 securities; the ten largest made up 6.32% of assets, and 6.46% sat in cash and money-market holdings.

• Over the three months to Jun 30, 2026, investors added a net $93.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +9.08%, +2.17%, +5.00%.

JMEE is actively managed, but it stays close to its benchmark, the S&P 1000 Index, which covers US small- and mid-size companies. As of September 30, 2026, companies in the index ranged from about $615 million to $44.7 billion in market value (share price times shares outstanding). The fund keeps at least 80% of its assets in stocks of companies in that size range. It aims to match or slightly beat the index's total return.

The fund's adviser ranks the stocks in the index with its own system, which draws on company financials, data science techniques and in-house research. It also weighs environmental, social and governance (ESG) issues. Within each sector, the fund holds a bit more of the top-ranked stocks that look undervalued or fairly priced, and less, or none, of those that look expensive. A stock becomes a candidate for sale when its rank falls or the company grows past the size range. Limits on sector weights and position sizes keep the fund spread out. As of June 30, 2026, its 10 largest holdings made up just 6.32% of assets.

The fund also uses futures, which are contracts whose value tracks an index, to invest incoming cash and to meet redemptions. As of June 30, 2026, 6.46% of assets was in cash, and the fund held S&P MidCap 400 and Russell 2000 E-mini futures. The prospectus says futures are used this way to keep cash exposed to the market. Portfolio turnover was 28%.

• JMEE charges 0.24% a year, versus an average of 0.11% for the similar funds below (8th of 9, cheapest first).
• Of that, 0.25% is the management fee; the rest covers other fund expenses.
• The fee includes a 0.1% waiver from the adviser, which may end.
• Using the prospectus's standard example, $10,000 invested would cost about $25 in the first year and $421 over 10 years (assuming a 5% annual return).

It adds smaller US companies next to a large-company core, but its past losses have been steeper than many retirees may want in a main holding.

JMEE could give a portfolio built around large US companies some exposure to smaller ones. The ride has been bumpy. Its deepest drop since trading began was 25.4%, from November 25, 2024, to April 8, 2025. It took about eight months to recover, reaching its old high on December 10, 2025. The prospectus record goes back before the ETF's May 2022 launch. It shows a 31.76% loss in the first quarter of 2020, a 12.83% loss in 2022 and a 13.23% loss in 2018, the worst calendar year shown. Someone forced to sell shares in a slump like these would lock in the loss.

Income is small. The trailing 12-month yield was 0.96% as of October 27, 2026, paid once a year. The 0.24% expense ratio is above the 0.11% average for similar funds. Past results don't predict future ones, and any plan should look at the whole portfolio, not one fund.

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