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JPSE - ETF AI Analysis

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JPSE

JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE)

Rating:67Neutral
Price Target:
JPSE, the JPMorgan Diversified Return U.S. Small Cap Equity ETF, earns a solid overall rating, largely supported by strong holdings like Sanmina and Fabrinet, which benefit from robust financial performance, positive earnings calls, and strategic growth moves. Other contributors such as TTM Technologies and Photronics add to the fund’s quality through solid results and generally favorable technical trends, though some holdings like ViaSat and Adeia introduce risks related to high leverage, litigation, and profitability challenges. The main risk factor is that several key positions share concerns around high valuations and mixed or bearish technical signals, which could increase volatility for investors.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating solid recent momentum.
Broad Sector Diversification
Holdings are spread across many sectors, including technology, real estate, industrials, materials, and health care, which helps reduce the impact of weakness in any single industry.
Well-Distributed Top Holdings
The largest positions each make up only a small slice of the fund, limiting the risk that any one stock will drive overall results.
Negative Factors
Heavy U.S. Focus
With almost all assets in U.S. stocks and very little in other countries, the fund is highly tied to the U.S. economy and market conditions.
Small-Cap Volatility Risk
Because the ETF invests in smaller companies, its share price can be more volatile and sensitive to market swings than large-cap funds.
Moderate Expense Ratio
The fund’s fee is not especially high but is also not among the very cheapest, which slightly reduces net returns over time.

JPSE vs. SPDR S&P 500 ETF (SPY)

JPSE Summary

JPSE is an exchange-traded fund that follows the JPMorgan Diversified Factor US Small Cap Equity Index, focusing on smaller U.S. companies across many sectors like technology, real estate, and industrials. It holds a wide mix of stocks, including names like ViaSat and Globalstar, giving investors broad exposure to the small-cap part of the market. Someone might invest in JPSE to seek long-term growth and add diversification beyond large, well-known companies. However, small-cap stocks can be more volatile, so the value of this ETF can go up and down more sharply than the overall market.
How much will it cost me?The expense ratio for the JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE) is 0.29%, which means you’ll pay $2.90 per year for every $1,000 invested. This is slightly higher than average for ETFs because it is actively managed, aiming to select and balance small-cap stocks strategically to optimize returns and manage risks.
What would affect this ETF?The JPSE ETF, focused on U.S. small-cap stocks, could benefit from economic growth and innovation in sectors like technology and healthcare, which are among its top exposures. However, it may face challenges from rising interest rates, which can increase borrowing costs for smaller companies, and economic slowdowns that typically impact small-cap stocks more than larger firms. Additionally, sector-specific risks, such as regulatory changes in energy or materials, could influence performance.

JPSE Top 10 Holdings

JPSE’s story right now is all about U.S. small-cap tech and communications names trying to pull the fund higher, with a few problem children slowing things down. FormFactor, Viavi Solutions, and Fabrinet have been rising, helped by upbeat earnings and solid momentum, giving the ETF a helpful tech-driven tailwind. Photronics and Argan look steadier, adding support without much drama. On the flip side, Ultra Clean Holdings and Globalstar are more mixed, with profitability and valuation concerns acting like sandbags on an otherwise improving small-cap, U.S.-focused portfolio.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Viavi Solutions0.55%$3.25M$12.40B488.24%
71
Outperform
TTM Technologies0.51%$2.98M$17.10B534.94%
77
Outperform
Sanmina-Sci0.48%$2.81M$12.79B199.42%
79
Outperform
Argan0.47%$2.78M$10.16B333.32%
73
Outperform
Adeia0.46%$2.70M$3.23B122.60%
65
Neutral
Formfactor0.45%$2.65M$11.62B402.76%
68
Neutral
Benchmark Electronics0.44%$2.60M$3.11B149.86%
72
Outperform
Photronics0.42%$2.49M$3.07B174.30%
74
Outperform
ViaSat0.41%$2.44M$9.14B625.22%
56
Neutral
Fabrinet0.41%$2.41M$24.33B223.51%
78
Outperform

JPSE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
54.40
Positive
100DMA
53.59
Positive
200DMA
51.13
Positive
Market Momentum
MACD
1.08
Negative
RSI
69.92
Neutral
STOCH
81.78
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For JPSE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 56.65, equal to the 50-day MA of 54.40, and equal to the 200-day MA of 51.13, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 69.92 is Neutral, neither overbought nor oversold. The STOCH value of 81.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JPSE.

JPSE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$592.11M0.29%
67
Neutral
$958.14M0.20%
65
Neutral
$882.99M0.48%
72
Outperform
$702.41M0.09%
64
Neutral
$690.75M0.38%
67
Neutral
$671.27M0.42%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JPSE
JPMorgan Diversified Return U.S. Small Cap Equity ETF
58.40
15.99
37.70%
GSSC
Goldman Sachs Activebeta U.S. Small Cap Equity ETF
OUSM
OShares U.S. Small-Cap Quality Dividend ETF
BBSC
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
EES
WisdomTree U.S. SmallCap Fund
JHSC
John Hancock Multifactor Small Cap ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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