JPMorgan Diversified Return U.S. Mid Cap Equity ETF

JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME) tracks the JP Morgan Diversified Factor US Mid Cap Equity Index. The index picks mid-size U.S. companies from the Russell Midcap Index based on value, momentum and quality. It spreads money unusually thinly: 349 stocks, with the 10 largest making up just 4.52% of assets as of July 31, 2026. Its 0.24% expense ratio is slightly above the 0.22% average for similar funds.

• Over the year to Oct 27, 2026, JPME returned +16.8%, 4th of 9 among similar funds.
• Its 5-year annualized return was +8.5% and its 10-year +11.1%.
• In the 2020 COVID crash it fell 41% and regained its old high 7.8 months after the low.
• Its worst full calendar year was 2022 (-10.1%); its best was 2021 (+28.9%).
• The deepest fall in its price history was 41% (Jan 17, 2020 to Mar 23, 2020), recovered by Nov 16, 2020.

As of Jul 31, 2026, the fund held 349 securities; the ten largest made up 4.52% of assets.

• Over the three months to Jul 31, 2026, investors added a net $12.3M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.46%, +2.24%, +1.18%.

The fund's adviser, J.P. Morgan, designed the index and the scoring rules behind it. A separate firm, FTSE International Limited, calculates and runs the index. Stocks come mainly from the Russell Midcap Index, a broad list of mid-size U.S. companies weighted by their market value. Each stock is scored on three traits, often called "factors," and each trait counts equally. Value favors stocks that look cheap compared with sector peers, based on book value, earnings, dividends and cash flow. Momentum favors stocks with strong 12-month returns for the amount their prices swung. Quality favors companies with higher profits, more dependable earnings and sounder finances. As of January 30, 2026, the index held 345 companies worth $1.3 billion to $88.5 billion each.

Instead of weighting by company size, the index tries to spread risk evenly across sectors and stocks. Sectors whose prices have historically swung more get smaller weights. As a result, no stock dominates: the largest holding, HF Sinclair, was 0.51% of assets as of July 31, 2026. The fund rebalances quarterly, and portfolio turnover was 25%.

The fund is passive. It aims to own every index stock in roughly the index's proportions, though it may hold a representative sample instead. It must keep at least 80% of assets in index stocks. It may put up to 10% in exchange-traded futures, and it does not move to cash when markets fall.

• JPME charges 0.24% a year, versus an average of 0.22% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $25 in the first year and $306 over 10 years (assuming a 5% annual return).

It adds mid-size U.S. companies, chosen by factors and weighted by risk, to a portfolio built mostly around large-company stocks, but it is still entirely stocks.

JPME launched in May 2016, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 41% from February 19 to March 23, 2020, its deepest drop. It got back to its old high by November 16, 2020, about 7.8 months later. In the 2022 bear market it fell 19.3% and took 14.8 months to recover, regaining its peak in December 2023. Its worst calendar year was 2022, at -10.22%. Anyone forced to sell shares or draw income during drops like these would lock in losses. Income is modest: the trailing yield was 1.79% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 would cost $25 in fees in the first year and $306 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.