The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) was launched on 04/14/2020, and is a passively managed exchange traded fund designed to offer 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 $1.92 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. Thus they have a nice balance of growth potential and stability.

Blend ETFs are aptly named, since they tend to hold a mix of growth and value stocks, as well as show characteristics of both kinds of equities.

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 1.10%.

Sector Exposure and Top Holdings

Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Industrials sector--about 20.50% of the portfolio. Financials and Consumer Discretionary round out the top three.

Looking at individual holdings, Microstrategy Inc Common (MSTR) accounts for about 1.03% of total assets, followed by Applovin Corp Common (APP) and Carvana Co Common Stock (CVNA).

The top 10 holdings account for about 6.13% 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 gained about 24.18% so far this year and is up about 31.75% in the last one year (as of 12/05/2024). In the past 52-week period, it has traded between $79.03 and $105.01.

The ETF has a beta of 1.09 and standard deviation of 21.28% for the trailing three-year period. With about 597 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) and the iShares Core S&P Mid-Cap ETF (IJH) track a similar index. While Vanguard Mid-Cap ETF has $76.08 billion in assets, iShares Core S&P Mid-Cap ETF has $100.97 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC): ETF Research Reports

AppLovin Corporation (APP) : Free Stock Analysis Report

MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

iShares Core S&P Mid-Cap ETF (IJH): ETF Research Reports

Vanguard Mid-Cap ETF (VO): ETF Research Reports

Carvana Co. (CVNA) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research