JPMorgan Diversified Return Use Equity

JPMorgan Diversified Return U.S. Equity ETF (JPUS) is an index fund that holds about 370 large and mid-sized US companies. It picks them for value, momentum and quality, and it balances sector weights by risk rather than by company size. As of July 31, 2026, no single stock made up more than 0.5% of assets, which makes it look very different from a market-cap fund. Its 0.18% expense ratio is below the 0.27% average of similar funds.

• Over the year to Oct 27, 2026, JPUS returned +16.3%, 5th of 9 among similar funds.
• Its 5-year annualized return was +9.5% and its 10-year +11.9%.
• In the 2020 COVID crash it fell 38.7% and regained its old high 7.7 months after the low.
• Its worst full calendar year was 2022 (-8.5%); its best was 2021 (+29.1%).
• The deepest fall in its price history was 38.7% (Feb 14, 2020 to Mar 23, 2020), recovered by Nov 11, 2020.

As of Jul 31, 2026, the fund held 370 securities; the ten largest made up 4.43% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $165K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.19%, +2.87%, +1.24%.

JPUS tracks the JP Morgan Diversified Factor US Equity Index. J.P. Morgan, the fund's adviser, built the index and its factors, and FTSE International Limited calculates and runs it. Most stocks come from the Russell 1000 Index, a list of large and mid-sized US companies. Each stock is scored on three traits, each with an equal say. Value means cheap compared with sector peers on book, earnings, dividend and cash-flow yields. Momentum means stronger 12-month returns after adjusting for volatility. Quality means profitability, earnings quality and financial strength. As of January 30, 2026, the index held 366 companies worth $1.3 billion to $4.7 trillion.

The weighting is the unusual part. The biggest companies don't automatically get the biggest slices. Instead, the index adjusts sector weights based on each sector's past volatility, so risk is spread evenly across 11 sectors and many stocks. As of July 31, 2026, the 10 largest holdings, led by Valero Energy, Marathon Petroleum and Iridium Communications, made up just 4.43% of assets. Apple was about 0.42%.

The fund rebalances every quarter along with the index and tries to own nearly all index stocks in about the same proportions. It may put up to 10% of assets in exchange-traded futures. As of July 31, 2026, it held only a tiny S&P 500 futures position. The prospectus lists portfolio turnover of 25%.

• JPUS charges 0.18% a year, versus an average of 0.27% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $230 over 10 years (assuming a 5% annual return).

Its factor-based, risk-balanced weights spread money across hundreds of US stocks with no giant positions, so it may complement a market-cap-weighted index fund.

JPUS gives broad US stock exposure without the heavy lean toward a few mega-caps. It is still a stock fund, though. In the 2020 COVID crash it fell 38.7% between February and March 23, 2020, and took about 7.7 months to recover. In 2022 it dropped 19% from April 20 to September 30 and needed about 14.5 months to reach its old peak again. Its worst calendar year was 2022, at -8.52%. It launched in 2015, so it has no 2008 record. Anyone forced to sell during a slump like 2020 would have locked in deep losses. Over the 12 months to October 27, 2026, it yielded 2.01%, paid quarterly. In the SEC's standard $10,000 example it costs $18 in the first year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

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