JPMorgan Diversified Return Emerging Markets Equity ETF

JPMorgan Diversified Return Emerging Markets Equity ETF (JPEM) is an index fund that holds about 560 large and mid-sized emerging-market stocks. J.P. Morgan's own rules pick them for value, momentum and quality. Most emerging-market funds weight stocks by company size. JPEM instead spreads risk across regions and sectors, so no stock topped 2% of assets as of July 31, 2026. Its 0.44% fee is higher than the 0.31% average of similar funds.

• Over the year to Oct 27, 2026, JPEM returned +8.4%, 6th of 9 among similar funds.
• Its 5-year annualized return was +6.3% and its 10-year +6.5%.
• In the 2020 COVID crash it fell 34.7% and regained its old high 8.6 months after the low.
• Its worst full calendar year was 2018 (-10.5%); its best was 2017 (+28.8%).
• The deepest fall in its price history was 40.2% (Jan 26, 2018 to Mar 23, 2020), recovered by Apr 28, 2021.

As of Jul 31, 2026, the fund held 558 securities; the ten largest made up 10.88% of assets.

• Over the three months to Jul 31, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.06%, -1.94%, +3.03%.

JPEM tracks the JP Morgan Diversified Factor Emerging Markets Equity Index. The fund's adviser sponsors the index and designed its rules. FTSE International Limited calculates and runs it. Stocks come mainly from the FTSE Emerging Index, which covers large and mid-sized companies in emerging markets and weights them by market value (company size). As of January 30, 2026, JPEM's index held 516 companies.

The index scores each stock on three "factors," or traits, and gives each one equal say. Value looks for low prices relative to book value, earnings, dividends and cash flow. Momentum favors stocks with stronger 12-month returns after adjusting for how bumpy those returns were. Quality favors profitable companies with sound balance sheets. Each stock is compared only with peers in its own region and super-sector. The regions are Asia Pacific ex China, China, EMEA and Latin America. The index then sets the size of each region and super-sector based on its past volatility (how much its price swings), so that risk is spread more evenly.

The fund aims to hold nearly every index stock in the same proportions, but it may hold a representative sample instead. It rebalances every quarter and can put up to 10% of assets in exchange-traded futures. Portfolio turnover was 30%. One drawback: the fund often handles investor purchases and redemptions in cash rather than in stock. That can force it to sell holdings and pay out taxable capital gains.

• JPEM charges 0.44% a year, versus an average of 0.31% for the similar funds below (7th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $45 in the first year and $555 over 10 years (assuming a 5% annual return).

It adds a broad, factor-tilted slice of emerging-market stocks, led by China, Brazil and Taiwan, that can behave differently from US holdings.

JPEM gives a portfolio stocks in China (16%), Brazil (11%), Taiwan (11%), India, South Africa and Turkey, as of July 31, 2026. Its trailing 12-month yield was 4.63% as of October 27, 2026, paid quarterly. The fund launched in 2015, so it has no record from 2008. It fell 34.7% in the 2020 COVID crash and was back to its old high by December 2020. In 2022 it fell 21.6% and did not recover until March 2024. Its deepest drop was 40.2%, from January 2018 to March 2020, and it took until April 2021 to recover. Anyone who has to sell shares during a drop like that may lock in losses. Costs are 0.44% a year. In the SEC's standard example, that comes to $555 over 10 years on a $10,000 investment. 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.