ETF Evaluator: JPMorgan Diversified Return EMkts Eq ETF () Follow This ETF

JPMorgan Diversified Return EMkts Eq ETF Overview

JPMorgan Diversified Return EMkts Eq ETF (JPEM) is a passively managed International Equity Diversified Emerging Mkts exchange-traded fund (ETF). JPMorgan launched the ETF in 2015.

The investment seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor Emerging Markets Equity Index. The fund will invest at least 80% of its assets in securities included in the underlying index. "Assets" means net assets, plus the amount of borrowing for investment purposes. The underlying index is comprised of equity securities from emerging markets selected to represent a diversified set of factor characteristics.

About JPMorgan Diversified Return EMkts Eq ETF (JPEM)

There are 4 members of the management team with an average tenure of 8.12 years: Yazann Romahi (2017), Joe Staines (2017), Kartik Aiyar (2017) and Natalia Zvereva (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: FTSE Emerging NR USD index with a weighting of 100% and JPM Div Factor EM Eq NR USD index with a weighting of 100%. JPMorgan Diversified Return EMkts Eq ETF has 574 securities in its portfolio. The top 10 holdings constitute 10.9% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

JPMorgan Diversified Return EMkts Eq ETF is part of the Equity global asset class and is within the International Equity ETF group. JPMorgan Diversified Return EMkts Eq ETF has 98.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.9% There is 98.5% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). JPMorgan Diversified Return EMkts Eq ETF has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $389 million in total assets, which is below the $3 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

JPEM Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The JPMorgan Diversified Return EMkts Eq ETF expense ratio is average compared to funds in the Diversified Emerging Mkts category. JPMorgan Diversified Return EMkts Eq ETF has an expense ratio of 0.44%, which is 15% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. JPMorgan Diversified Return EMkts Eq ETF has a portfolio turnover rate of 30%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Diversified Emerging Mkts category.

Recently, in the month of July 2026, JPMorgan Diversified Return EMkts Eq ETF returned 3.0%, which earned it a grade of A, as the Diversified Emerging Mkts category had an average return of -3.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

JPMorgan Diversified Return EMkts Eq ETF has a trailing yield of 4.27%, which is above the 2.41% category average. The fund normally distributes its income quarterly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

JPMorgan Diversified Return EMkts Eq ETF Grades

Year to date, the ETF has returned 9.4%, 7.7 percentage points worse than the category, which translates into a grade of F. The fund has returned 20.5% over the past year (grade of D), 12.2% over the past three years (grade of F) and 7.2% per year over the past five years (grade of C) and 7.2% per year over the past 10 years (grade of D).

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