Designed to provide broad exposure to the Mid Cap Blend segment of the US equity market, the JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME) is a passively managed exchange traded fund launched on 05/11/2016.

The fund is sponsored by J.P. Morgan. It has amassed assets over $415.74 million, 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

Mid cap companies, with market capitalization in the range of $2 billion and $10 billion, offer investors many things that small and large companies don't, including less risk and higher growth opportunities. Thus, companies that fall under this category provide a stable and growth-heavy investment.

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

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.24%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 1.72%.

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 Healthcare sector--about 12% of the portfolio. Industrials and Real Estate round out the top three.

Looking at individual holdings, Ciena Corp Common Stock (CIEN) accounts for about 0.48% of total assets, followed by Kroger Co/the Common (KR) and Tapestry Inc Common (TPR).

The top 10 holdings account for about 4.42% of total assets under management.

Performance and Risk

JPME seeks to match the performance of the Russell Midcap Diversified Factor Index before fees and expenses. The JP Morgan Diversified Factor US Mid Cap Equity Index utilizes a rules-based approach that combines risk-based portfolio construction with multi-factor security selection, including value, quality and momentum factors.

The ETF has gained about 2.78% so far this year and is up roughly 17.67% in the last one year (as of 02/07/2025). In the past 52-week period, it has traded between $90.72 and $110.92.

The ETF has a beta of 1.05 and standard deviation of 16.52% for the trailing three-year period. With about 355 holdings, it effectively diversifies company-specific risk.

Alternatives

JPMorgan Diversified Return 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, JPME is a good 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 $76.39 billion in assets, iShares Core S&P Mid-Cap ETF has $99.59 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.

Bottom-Line

Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also 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.

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JPMorgan Diversified Return U.S. Mid Cap Equity ETF (JPME): ETF Research Reports

Ciena Corporation (CIEN) : Free Stock Analysis Report

The Kroger Co. (KR) : Free Stock Analysis Report

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

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

Tapestry, Inc. (TPR) : Free Stock Analysis Report

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