JMEE ETF: What Is It? Returns, Expense Ratio, Holdings, and Alternative ETFs Explained
A quant-driven active mid- and small-cap ETF built on the S&P 1000. It uses J.P. Morgan's proprietary quant model to seek modest excess returns over the index.
SubscribeWhat Is This ETF?
This is an actively managed ETF that uses the constituents of the S&P 1000 (S&P 400 mid-caps plus S&P 600 small-caps) as its universe. It applies J.P. Morgan's proprietary quant ranking model to select the most attractive stocks within each sector and adjust their weights.
It suits investors who want to pursue a step higher return than passive mid- and small-cap indexes while still maintaining broad exposure to the U.S. mid- and small-cap market.
J.P. Morgan Asset Management launched the ETF in 2020 as an actively managed product.
How Does It Invest?
| Item | Details |
|---|---|
| Investment universe | S&P 1000 (S&P 400 + S&P 600) |
| Management style | Active (quant-enhanced management) |
| Rebalancing frequency | Ongoing (continuous model-based adjustment) |
| Dividend frequency | Annual |
| Expense ratio | 0.24% |
Using J.P. Morgan's proprietary quant ranking system, the fund evaluates S&P 1000 constituents sector by sector, overweighting higher-ranked stocks and underweighting lower-ranked ones relative to the index. It invests most of its assets in S&P 1000 constituents while seeking modest excess returns based on company fundamentals.
- Sector-neutral excess return strategy based on a quant model
- A blend of broad S&P 1000 exposure and weight adjustments
Size and Costs
Assets under management (AUM) stand at $2.9B, and the expense ratio is 0.24% per year.
The fee is somewhat higher than that of passive ETFs in the same mid- and small-cap category, but whether the quant model generates alpha will determine its long-term net cost efficiency.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeU.S. mid- and small-cap stocks tend to be more volatile than large caps, depending on the interest rate environment and economic sensitivity. Because JMEE targets modest excess returns over the S&P 1000, it has generally tracked the overall direction of the market without straying far from it.
Fund flows across the U.S. mid- and small-cap sector respond sensitively to rate expectations and dollar strength, and inflows tend to pick up relatively strongly during periods of economic recovery expectations.
Strengths and Weaknesses
Quant-enhanced management seeks excess returns over the index, but investors must accept a somewhat higher fee than passive funds and the volatility characteristic of mid- and small-cap stocks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
DYNF and DFSU, shown in the table, are active mid- and small-cap ETFs from J.P. Morgan and another manager, respectively, and serve as comparison points. ARKK is an innovation-focused fund, and PSC is a passive small-cap value ETF. For passive alternatives that simply track mid- and small-cap indexes, you can also consider IWM, which tracks the Russell 2000, IJR, which covers S&P 600 small caps, and MDY, which covers S&P 400 mid caps.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DYNF | iShares U.S. Equity Factor Rotation Active ETF | $68.56 | +0.8% | $42.0B | 0.26% | 0.82% | +14.4% |
 THRO | iShares U.S. Thematic Rotation Active ETF | $43.95 | +0.9% | $7.4B | 0.57% | 0.3% | +14.7% |
 ARKK | ARK Innovation ETF | $81.84 | -0.2% | $6.0B | 0.75% | - | -8.4% |
 PSC | Principal U.S. Small-Cap ETF | $68.38 | +0.7% | $2.7B | 0.38% | 0.59% | +18.3% |
 ALAI | Alger AI Enablers & Adopters ETF | $42.76 | +1.4% | $2.4B | 0.58% | - | +15.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 UTHR | United Therapeutics Corp | 0.01% | $592.84 | +0.9% | $25.4B | 21.2 | - |
| FTI | TechnipFMC plc | 0.01% | $70.41 | +0.7% | $27.6B | 24.5 | 0.28% |
 CW | Curtiss-Wright Corp | 0.01% | $476.54 | +2.5% | $17.6B | 32.8 | 0.21% |
 MKSI | MKS Inc | 0.01% | $202.28 | +2.9% | $13.7B | 32.3 | 0.49% |
| TWLO | Twilio Inc | 0.01% | $263.65 | +0.7% | $40.5B | 36.7 | - |
 NVT | nVent Electric plc | 0.01% | $129.18 | +3.0% | $20.9B | 35.7 | 0.6% |
 WWD | Woodward Inc | 0.01% | $305.66 | +0.7% | $18.0B | 34.0 | 0.41% |
 MTZ | Mastec Inc | 0.01% | $172.59 | +0.9% | $13.9B | 27.5 | - |
Investor Checkpoints
Here are the items to review before investing in JMEE. As a quant active ETF, it is important to check in advance the fee burden, the sustainability of the model's performance, and changes in the mid- and small-cap market environment.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense ratio | Compare the cost difference versus passive mid- and small-cap ETFs | Somewhat high |
| 📊 Alpha realization | Review the long-term excess return trend versus the benchmark (S&P 1000) | Needs verification |
| 📉 Mid- and small-cap volatility | Downside risk from economic sensitivity and changes in the rate environment | Higher than large caps |
| 💱 Exchange rate | Impact on dollar-translated returns for Korean-won investors | Not currency hedged |
The high volatility and liquidity constraints characteristic of mid- and small-cap stocks are the main risks. In a recession, drawdowns can be larger than for large caps, and if the quant model's performance falls short of expectations, only the cost burden may remain.
This product suits investors who want to keep exposure to the U.S. mid- and small-cap market while also pursuing quant alpha. If cost is your priority, passive ETFs such as IWM and IJR are the better choice, and if you want active management in mid- and small-cap stocks, JMEE is an option.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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