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Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?
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Launched on 04/14/2020, the JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $1.66 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.07%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.26%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 23% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Super Micro Computer Inc (SMCI - Free Report) accounts for about 1.45% of total assets, followed by Microstrategy Inc Common (MSTR - Free Report) and Builders Firstsource Inc (BLDR - Free Report) .
The top 10 holdings account for about 6.98% of total assets under management.
Performance and Risk
BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.
The ETF has added roughly 6% so far this year and it's up approximately 23.34% in the last one year (as of 05/28/2024). In the past 52-week period, it has traded between $69.87 and $92.45.
The ETF has a beta of 1.09 and standard deviation of 21.11% for the trailing three-year period. With about 600 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BBMC is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $64.63 billion in assets, iShares Core S&P Mid-Cap ETF has $84 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?
Launched on 04/14/2020, the JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by J.P. Morgan. It has amassed assets over $1.66 billion, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
Annual operating expenses for this ETF are 0.07%, making it one of the cheaper products in the space.
It has a 12-month trailing dividend yield of 1.26%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Industrials sector--about 23% of the portfolio. Consumer Discretionary and Financials round out the top three.
Looking at individual holdings, Super Micro Computer Inc (SMCI - Free Report) accounts for about 1.45% of total assets, followed by Microstrategy Inc Common (MSTR - Free Report) and Builders Firstsource Inc (BLDR - Free Report) .
The top 10 holdings account for about 6.98% of total assets under management.
Performance and Risk
BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.
The ETF has added roughly 6% so far this year and it's up approximately 23.34% in the last one year (as of 05/28/2024). In the past 52-week period, it has traded between $69.87 and $92.45.
The ETF has a beta of 1.09 and standard deviation of 21.11% for the trailing three-year period. With about 600 holdings, it effectively diversifies company-specific risk.
Alternatives
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, BBMC is a reasonable option for those seeking exposure to the Style Box - Mid Cap Blend area of the market. Investors might also want to consider some other ETF options in the space.
The Vanguard Mid-Cap ETF (VO - Free Report) and the iShares Core S&P Mid-Cap ETF (IJH - Free Report) track a similar index. While Vanguard Mid-Cap ETF has $64.63 billion in assets, iShares Core S&P Mid-Cap ETF has $84 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.