Subscribe to Entrepreneur for $5

Should JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) Be on Your Investing Radar?

Style Box ETF report for BBMC

This story originally appeared on Zacks

The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC) was launched on 04/14/2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Mid Cap Blend segment of the US equity market.

- Zacks

The fund is sponsored by J.P. Morgan. It has amassed assets over $1.57 billion, 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

Compared to large and small cap companies, mid cap businesses tend to have higher growth prospects and are less volatile, respectively, with market capitalization between $2 billion and $10 billion. Thus they have a nice balance of growth potential and stability.

Typically holding a combination of both growth and value stocks, blend ETFs also demonstrate qualities seen in value and growth investments.


Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.07%, putting it on par with most peer products in the space.

It has a 12-month trailing dividend yield of 0.89%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector--about 20.10% of the portfolio. Industrials and Financials round out the top three.

Looking at individual holdings, Datadog Inc (DDOG) accounts for about 1.04% of total assets, followed by Enphase Energy Inc (ENPH) and Mongodb Inc Common Stock (MDB).

The top 10 holdings account for about 7.4% of total assets under management.

Performance and Risk

BBMC seeks to match the performance of the MORNINGSTAR US MID CAP TGT MK EXP EXT ID before fees and expenses. The Morningstar US Mid Cap Target Market Exposure Extended Index is a free-float adjusted market-cap weighted index which consists of equity securities traded in the United States.

The ETF has added roughly 19.41% so far this year and was up about 16.08% in the last one year (as of 12/28/2021). In the past 52-week period, it has traded between $77.40 and $97.36.

The ETF has a beta of 0.98 and standard deviation of 21.56% for the trailing three-year period. With about 595 holdings, it effectively diversifies company-specific risk.


JPMorgan BetaBuilders 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, BBMC is a reasonable 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 MidCap ETF (VO) and the iShares Core S&P MidCap ETF (IJH) track a similar index. While Vanguard MidCap ETF has $56.76 billion in assets, iShares Core S&P MidCap ETF has $67.94 billion. VO has an expense ratio of 0.04% and IJH charges 0.05%.


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.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report


JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (BBMC): ETF Research Reports


Enphase Energy, Inc. (ENPH): Free Stock Analysis Report


iShares Core S&P MidCap ETF (IJH): ETF Research Reports


Vanguard MidCap ETF (VO): ETF Research Reports


MongoDB, Inc. (MDB): Free Stock Analysis Report


Datadog, Inc. (DDOG): Free Stock Analysis Report


To read this article on click here.