ETF Evaluator: JPMorgan Divers Ret US Small Cap Eq ETF (JPSE) Follow This ETF

JPMorgan Divers Ret US Small Cap Eq ETF Overview

JPMorgan Divers Ret US Small Cap Eq ETF (JPSE) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). JPMorgan launched the ETF in 2016.

The investment seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Small Cap 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 U.S. equity securities selected to represent a diversified set of factor characteristics. The rules based proprietary multi-factor selection process utilizes the following characteristics: value, momentum and quality.

About JPMorgan Divers Ret US Small Cap Eq ETF (JPSE)

There are 3 members of the management team with an average tenure of 7.64 years: Yazann Romahi (2016), Joe Staines (2016) and Natalia Zvereva (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and JPM Div Factor US SC Eq TR USD index with a weighting of 100%. JPMorgan Divers Ret US Small Cap Eq ETF has 568 securities in its portfolio. The top 10 holdings constitute 3.7% 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 Divers Ret US Small Cap Eq ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. JPMorgan Divers Ret US Small Cap Eq ETF has 1.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.0% There is 1.9% 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 Divers Ret US Small Cap Eq ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $593 million in total assets, which is below the $5 billion average for the Small Blend 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.

JPSE 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 Divers Ret US Small Cap Eq ETF expense ratio is below average compared to funds in the Small Blend category. JPMorgan Divers Ret US Small Cap Eq ETF has an expense ratio of 0.29%, which is 31% lower than its category average, making the fund expense ratio grade a B. 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 Divers Ret US Small Cap Eq ETF has a portfolio turnover rate of 27%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.

Recently, in the month of June 2026, JPMorgan Divers Ret US Small Cap Eq ETF returned 4.5%, which earned it a grade of D, as the Small Blend category had an average return of 5.8%. 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 Divers Ret US Small Cap Eq ETF has a trailing yield of 1.32%, which is above the 1.19% 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 Divers Ret US Small Cap Eq ETF Grades

Year to date, the ETF has returned 20.4%, 0.2 percentage points worse than the category, which translates into a grade of C. The fund has returned 34.1% over the past year (grade of C), 15.5% over the past three years (grade of D) and 8.0% per year over the past five years (grade of C).

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