The JPM BetaBuilders US Small Cap Equity UCITS ETF (BBSD) is an Ireland-domiciled equity ETF managed by J.P. Morgan Asset Management. BBSD represents the fund's USD distributing share class traded in U.S. dollars on the London Stock Exchange.

The fund seeks to track the Morningstar US Small Cap Target Market Exposure Index, a benchmark comprising small-cap companies in the U.S. equity market.

BBSD follows a passive investment strategy and uses physical replication. The fund seeks to hold index constituents in proportions similar to their respective benchmark weights in order to closely track the index's performance.

The Morningstar US Small Cap Target Market Exposure Index is market-cap weighted and designed to represent the small-cap segment of the U.S. equity market. The ETF therefore provides exposure to a broad group of smaller companies across different areas of the economy.

Composition / Exposure Profile

BBSD holds companies across different sectors of the U.S. economy, including:

• Technology.

• Industrials.

• Health care.

• Consumer discretionary.

• Financials.

• Real estate.

• Materials.

• Energy.

• Consumer staples.

• Communication services.

• Utilities.

The fund's exposure is concentrated in the U.S. small-cap market. Because the portfolio covers a broad universe of companies, individual holdings tend to represent relatively small portions of the fund compared with indexes concentrated in large companies.

Small-cap companies can behave differently from their larger counterparts. Their financial performance tends to be more sensitive to domestic economic conditions, the availability and cost of credit, consumer and business demand, and changes in growth expectations.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the distributing share class trades in USD under BBSD and in GBP/GBX under BBDS. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

The ETF has ongoing charges of 0.14% per year, uses physical replication, and is domiciled in Ireland. It operates as part of JPMorgan ETFs (Ireland) ICAV under the UCITS framework.

BBSD follows a distributing income policy. Dividends received from portfolio companies may therefore be periodically distributed to shareholders rather than fully reinvested within the fund.

History and Evolution of the ETF

The JPM BetaBuilders US Small Cap Equity UCITS ETF – USD (Dist) was launched in 2022 to provide diversified exposure to U.S. small-cap companies through a passive investment strategy.

Since its launch, the fund has maintained a strategy linked to the Morningstar US Small Cap Target Market Exposure Index, tracking a broad universe of U.S. small-cap companies across different sectors.

Throughout its history, BBSD's performance has reflected factors including U.S. economic growth, credit conditions, interest rates, corporate earnings, and changes in investor expectations for smaller companies.

Additional Information

JPM BetaBuilders US Small Cap Equity UCITS ETF USD Dist (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $184.58 billion.

Over the past 12 months, JPM BetaBuilders US Small Cap Equity UCITS ETF USD Dist recorded a return of 16.05%, with its price trading between $31.71 and $41.42 during the same period.

The ETF is traded under the ticker BBSD.