These 2 JPMorgan ETFs are Fantastic

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JPMorgan’s ETF lineup has grown significantly over the years, and passive investors have taken notice. Indeed, it’s hard to get any bigger than JPMorgan when it comes to trusted financial institutions. But it’s more than just the big name that will draw in considerable investment inflows. The ETF lineup has to add value and meet the numerous unique goals that retail investors may have.

With a potent roster of very competitive products that I think do a fantastic job of helping investors hit their investment targets in a cost-effective manner, ETF investors new to the scene may wish to have a closer look at the offerings.

Whether you’re looking for supercharged yields by way of call options premiums, a one-stop shop equity or fixed income solution, or you’re just looking for a more diversified, perhaps growthier alternative to the S&P 500 or the Nasdaq 100, JPMorgan ETFs probably have something that’ll interest you or perhaps do the job better than the ETFs that are currently at the core of your passive portfolio. And in this piece, we’ll look at three offerings to keep on the radar as the year comes to a close.

JPMorgan Active Value ETF

For value seekers out there worried about extended market multiples (most notably the price-to-earnings ratio), the JPMorgan Active Value ETF (NYSEARCA:JAVA) is just another ETF to watch closely. With a silver medal awarded from Morningstar, the “large-cap value” flavored ETF is a standout for those who’ve grown wary of the S&P 500 because of its hefty exposure to high-multiple tech.

Of course, the JAVA will still grant you a good amount of tech sector exposure, but with quality and “bottom up” value taking precedence, those fearing an AI bubble might just do better with JAVA over the likes of a broader U.S. equity market index fund.

With a more active approach (its portfolio managers have been in the business for decades) that employs an approach of stock selection on the basis that the stock market is a market of stocks, I’m a big fan of JAVA for those who might be a little bit too at risk come the next market correction. The JAVA is well-diversified across sectors, with just shy of 12% on names allocated to tech, with close to 21% in financials, an often-underrated corner of the market that’s rich with relative value.

JPMorgan U.S. Tech Leaders ETF

JPMorgan U.S. Tech Leaders ETF (NYSEARCA:JTEK) is another standout ETF that’s worth checking out, especially if you’re not the biggest fan of the Nasdaq 100 as a way to bet big on tech. The JTEK has outperformed the S&P 500 and Nasdaq 100 this year, with just shy of 22% in year-to-date gains.

With a bronze Morningstar rating, an experienced lineup of portfolio managers, and more of a focus on reasonably priced growth stocks, I do find the more active tech ETF stands out as a better way to capitalize on the AI revolution. Indeed, steering clear of overvaluation while seizing relatively undervalued opportunities in tech could be key to feasting on gains from AI without having to get hit with the worst of indigestion once the next correction in tech happens.

Underneath the hood, you’ll get quite a few Magnificent Seven names, but with more manageable weightings (5% or less). Also, you’re getting more exposure to the names underweighted or not even present in the Nasdaq 100. Given this, I’m a big fan of the JTEK as an alternative for the Nasdaq 100.

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