UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-22903
J.P. Morgan Exchange-Traded Fund Trust
(Exact name of registrant as specified in charter)
277 Park Avenue
New York, NY 10172
(Address of principal executive offices) (Zip code)
Gregory S. Samuels
J.P. Morgan Investment Management Inc.
277 Park Avenue
New York, NY 10172
(Name and Address of Agent for Service)
With copies to:
| | |
| Elizabeth A. Davin, Esq. | | Jon S. Rand, Esq. |
| JPMorgan Chase & Co. | | Dechert LLP |
| 1111 Polaris Parkway | | 1095 Avenue of the Americas |
| Columbus, OH 43240 | | New York, NY 10036 |
Registrant’s telephone number, including area code: 1-844-457-6383
Date of fiscal year end: October 31
Date of reporting period: November 1, 2022 through October 31, 2023
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
a.) The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
b.) A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Reports. Not Applicable. Notices do not incorporate disclosures from the shareholder reports.
Annual Report
J.P. Morgan Exchange-Traded Funds
October 31, 2023
| | |
JPMorgan BetaBuilders Canada ETF | | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
JPMorgan BetaBuilders Emerging Markets Equity ETF | | |
JPMorgan BetaBuilders Europe ETF | | |
JPMorgan BetaBuilders International Equity ETF | | |
JPMorgan BetaBuilders Japan ETF | | |
JPMorgan BetaBuilders U.S. Equity ETF | | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | | |
JPMorgan Carbon Transition U.S. Equity ETF | | |
JPMorgan Diversified Return Emerging Markets Equity ETF | | |
JPMorgan Diversified Return International Equity ETF | | |
JPMorgan Diversified Return U.S. Equity ETF | | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | | |
JPMorgan U.S. Momentum Factor ETF | | |
JPMorgan U.S. Quality Factor ETF | | |
JPMorgan U.S. Value Factor ETF | | |
CONTENTS
Investments in a Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when a Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of a Fund or the securities markets.
Prospective investors should refer to the Funds’ prospectuses for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Exchange-Traded Funds at (844) 457-6383 for a prospectus containing more complete information about a Fund, including management fees and other expenses. Please read it carefully before investing.
Shares are bought and sold throughout the day on an exchange at market price (not at net asset value) through a brokerage account, and are not individually subscribed and redeemed from a Fund. Shares may only be subscribed and redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
President's LetterDecember 14, 2023 (Unaudited)
Dear Shareholder,
While the U.S. economy generally performed well this year, global economic growth has been uneven in the face of elevated interest rates and heightened geopolitical tensions. Equity markets largely outperformed fixed income markets for the twelve months ended October 31, 2023, though rising yields lifted investor demand for certain types of bonds.
|
"The strong performance of financial markets in 2023 created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.” — Brian S. Shlissel
|
Inflationary pressures have receded sufficiently so far that the U.S. Federal Reserve declined to raise interest rates since September 2023 and signaled it may reduce rates three times in 2024. Both the European Central Bank and the Bank of England also declined to raise interest rates in the third quarter of 2023. Financial markets largely responded positively to the central banks’ policy stances, though the view that interest rates could remain “higher for longer” appeared to temper investor optimism.
Overall, corporate earnings and revenues within developed markets generally continued to grow through the first three quarters of 2023, though certain surveys indicated many businesses anticipate demand to slow next year. Emerging markets experienced a wider dispersion in economic performance and corporate results, partly due to slower economic growth in China, post-pandemic changes to global supply chains and elevated debt servicing costs.
While some assert that the risk of economic recession has receded in 2023, the risk remains. China’s struggling property sector could further undermine economic growth and spill over to certain commodity exporting nations. Additionally, there is no clear timing with regard to the resolution of the war in Ukraine, which continues to impact global energy and grain supplies. The Israel-Hamas conflict has the potential to both widen militarily and to impact international trade and prices for energy and food. However, financial markets have generally continued to function without major disruptions during the period.
The strong performance of financial markets has created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.
Our suite of investment solutions seeks to provide investors with the ability to build durable portfolios that meet their financial goals, regardless of macroeconomic and geopolitical uncertainties.
Sincerely,
Brian S. Shlissel
President, J.P. Morgan Exchange-Traded Funds
J.P. Morgan Asset Management
1-844-4JPM-ETF or jpmorgan.com/etfs for more information
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds
MARKET OVERVIEWTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
Equity markets continued to outperform bond markets during the period, generating positive returns largely due to gains made during the first half of 2023. Following a surge in U.S. equity prices, investors largely sought lower equity valuations in international markets in the second half of the period.
Overall, equities in international developed markets outperformed both emerging market and U.S. equities. Growth stocks and large capitalization stocks largely outperformed value stocks and mid cap and small cap stocks. Within fixed income markets, emerging markets debt and lower-rated bonds in developed markets generally outperformed U.S. Treasury bonds.
While the U.S. Federal Reserve, the European Central Bank and The Bank of England continued to raise interest rates at regular intervals through the first half of 2023, declining inflationary pressures allowed all three central banks to withhold further increases at the end of the reporting period.
Corporate earnings were generally better-than-expected for most of the period but results for the third quarter of 2023 showed some slowing in earnings and revenue growth. Tight labor markets in the U.S. eased somewhat in the final months of the period and the jobless rate rose to 3.8% in October 2023, which raised investor expectations that inflation would continue to slow.
Global energy prices largely fell during the period amid slowing demand from China and leading industrialized nations. Crude oil prices spiked briefly in September 2023 when Saudi Arabia and Russia extended production cuts and again in early October at the outbreak of the Israel-Hamas conflict. However, global petroleum prices receded by the end of the period as economic data, including U.S. gasoline consumption, continued to indicate slowing global demand.
Notably, financial sector stocks were roiled by the collapse of Silicon Valley Bank in late March 2023, followed closely by the failures of Signature Bank and Credit Suisse. In each case, government regulators moved to prevent the erosion of consumer and investor confidence in the banking system.
For the twelve months ended October 31, 2023, the MSCI EAFE Index returned 15.01%, the MSCI Emerging Markets Index returned 11.26% and the S&P 500 Index returned 10.14%.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Canada ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Canada Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders Canada ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Canada Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free float adjusted, market capitalization-weighted index, which consists of stocks traded primarily on the Toronto Stock Exchange. Using a "passive" investment approach, the Fund attempts to replicate the constituent securities of the Underlying Index as closely as possible, before considering fees and expenses, and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund provided a negative absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the timing of foreign exchange rate calculations, operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the financials and materials sectors were leading detractors from absolute performance, while their exposures to the information technology and consumer staples sectors were leading contributors to absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the financials and energy sectors and their smallest allocations were to the health care
and real estate sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Royal Bank of Canada (Canada) | |
| Toronto-Dominion Bank (The) (Canada) | |
| Canadian Natural Resources Ltd. (Canada) | |
| | |
| Canadian Pacific Kansas City Ltd. (Canada) | |
| Canadian National Railway Co. (Canada) | |
| Shopify, Inc., Class A (Canada) | |
| Bank of Montreal (Canada) | |
| Bank of Nova Scotia (The) (Canada) | |
| Suncor Energy, Inc. (Canada) | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $55.16 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Canada ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $55.17.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan BetaBuilders Canada ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (8/7/18 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on August 7, 2018.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders Canada ETF and Morningstar® Canada Target Market Exposure IndexSM (net total return) from August 7, 2018 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Canada Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® Canada Target Market Exposure IndexSM (net total return) is a rules-based, float-adjusted market capitalization-weighted index designed to cover 85% of the equity float-adjusted market capitalization of the
Canada equity markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free float adjusted, market capitalization-weighted index that consists of equity securities from developed Asia-Pacific countries or regions other than Japan, including: Australia, Hong Kong, New Zealand and Singapore. Using a "passive" investment approach, the Fund attempts to replicate the constituent securities of the Underlying Index as closely as possible, before considering fees and expenses, and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the Fund’s net asset value calculations versus the Underlying Index’s valuation calculations and in the timing of foreign exchange rate calculations, as well as operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the materials and financials sectors were leading contributors to absolute performance, while their exposures to the health care and real estate sectors were leading detractors from absolute performance.
By country or region, the Fund’s and the Underlying Index’s exposures to Australia and Hong Kong were leading contributors to absolute performance, while their exposures to New Zealand was the sole detractor from absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the financials and materials
sectors and their smallest allocations were to the information technology and communication services sectors. The Fund’s and the Underlying Index’s largest allocations by country or region were to Australia and Hong Kong and their smallest allocations were to New Zealand and Singapore.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| BHP Group Ltd. (Australia) | |
| Commonwealth Bank of Australia (Australia) | |
| AIA Group Ltd. (Hong Kong) | |
| | |
| National Australia Bank Ltd. (Australia) | |
| ANZ Group Holdings Ltd. (Australia) | |
| Westpac Banking Corp. (Australia) | |
| DBS Group Holdings Ltd. (Singapore) | |
| Hong Kong Exchanges & Clearing Ltd. (Hong Kong) | |
| Woodside Energy Group Ltd. (Australia) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects
| J.P. Morgan Exchange-Traded Funds | |
adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $43.57 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $43.56.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (8/7/18 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on August 7, 2018.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF and Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM (net total return) from August 7, 2018 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM (net total return) is a rules-based, float-adjusted market capitalization-weighted index designed to cover 85% of the equity float-adjusted market capitalization of the Developed Asia Pacific ex-Japan
equity markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
FUND COMMENTARYFOR THE PERIOD May 10, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Emerging Markets Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders Emerging Markets Equity ETF (the "Fund") seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Emerging Markets Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free-float adjusted market capitalization-weighted index, which consists of equity securities from emerging countries. Using a "representative sampling" investment approach, the Fund chooses securities in an attempt to approximate the investment characteristics of the constituent securities of the Underlying Index.
HOW DID THE FUND PERFORM?
For the period from inception on May 10, 2023 to October 31, 2023, the Fund had a negative absolute return and performed in line with Underlying Index, before considering the effects of differences in the timing of foreign exchange rate calculations, operating expenses, fees and tax management of the Fund’s portfolio.
By sector, the Fund’s and the Underlying Index’s exposures to the financials and materials sectors were leading detractors from absolute performance, while their exposures to the information technology and energy sectors were leading contributors to absolute performance.
By country, the Fund’s and the Underlying Index’s exposures to China and South Korea were leading detractors from absolute performance, while their exposures to India and Brazil were leading contributors to absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest sector allocations were to the financials and information technology sectors and their smallest allocations were to the real estate and utilities sectors. The Fund’s and the Underlying Index’s largest country allocations were to China and India and their smallest allocations were to Egypt and the Czech Republic.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | |
| Samsung Electronics Co. Ltd. (South Korea) | |
| Tencent Holdings Ltd. (China) | |
| Alibaba Group Holding Ltd. (China) | |
| | |
| Reliance Industries Ltd. (India) | |
| International Holding Co. PJSC (United Arab Emirates) | |
| PDD Holdings, Inc., ADR (China) | |
| | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
FUND COMMENTARYFOR THE PERIOD May 10, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited) (continued)
adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $44.76 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the inception date net asset value, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $44.86.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | CUMULATIVE SINCE INCEPTION |
JPMorgan BetaBuilders Emerging Markets Equity ETF | | |
| | |
| | |
LIFE OF FUND PERFORMANCE (5/10/23 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on May 10, 2023.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders Emerging Markets Equity ETF and Morningstar® Emerging Markets Target Market Exposure IndexSM (net total return) from May 10, 2023 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Emerging Markets Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® Emerging Markets Target Market Exposure IndexSM (net total return) is a rules based, float market capitalization-weighted index designed to provide exposure to large-
and mid-cap stocks in emerging markets representing the top 85% of the investable universe by float-adjusted market capitalization. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Developed Europe Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders Europe ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Europe Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free float, adjusted market capitalization-weighted index consisting of equity securities from developed European countries or regions, including: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Poland, Portugal, Spain, Sweden, Switzerland and the U.K. Using a "passive" investment approach, the Fund attempts to replicate the constituent securities of the Underlying Index as closely as possible, before considering fees and expenses, and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund provided a positive absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the Fund’s net asset value calculations versus the Underlying Index’s valuation calculations and in the timing of foreign exchange rate calculations, as well as operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the financials and industrials sectors were leading contributors to absolute performance, while their exposures to the real estate and communication services sectors were the smallest contributors and no sectors detracted from absolute performance.
By country, the Fund’s and the Underlying Index’s exposures to France and the U.K. were leading contributors to absolute performance, while their exposures to Finland were the sole country detractors from absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest sector allocations were to the financials and
health care sectors and their smallest allocations were to the real estate and communication services sectors. The Fund’s and the Underlying Index’s largest country allocations were to the U.K. and France and their smallest allocations were to Portugal
and Austria.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Novo Nordisk A/S, Class B (Denmark) | |
| | |
| ASML Holding NV (Netherlands) | |
| | |
| AstraZeneca plc (United Kingdom) | |
| Novartis AG (Registered) (Switzerland) | |
| LVMH Moet Hennessy Louis Vuitton SE (France) | |
| | |
| TotalEnergies SE (France) | |
| HSBC Holdings plc (United Kingdom) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $49.36 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $49.40.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan BetaBuilders Europe ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (6/15/18 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on June 15, 2018.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders Europe ETF and Morningstar® Developed Europe Target Market Exposure IndexSM (net total return) from June 15, 2018 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Developed Europe Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. Morningstar® Developed Europe Target Market Exposure IndexSM (net total return) is a rules-based, float-adjusted market capitalization-weighted index designed to cover 85% of the equity float-adjusted market capitalization of the Developed Europe equity
markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders International Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free float adjusted, market capitalization-weighted index, which consists of equity securities from developed countries or regions outside the U.S. and Canada. Using a "passive" investment approach, the Fund attempts to replicate the constituent securities of the Underlying Index as closely as possible, before considering fees and expenses, and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the Fund’s net asset value calculations versus the Underlying Index’s valuation calculations and in the timing of foreign exchange rate calculations, as well as operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the financials and consumer discretionary sectors were leading contributors to absolute performance, while their exposures to the real estate and health care sectors were leading detractors from absolute performance.
By country, the Fund’s and the Underlying Index’s exposures to Japan and France were leading contributors to absolute performance, while their exposures to Australia and Israel were leading detractors from absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest sector allocations were to the financials and industrials sectors, while their smallest allocations were to the real estate and utilities sectors. The Fund’s and the Underlying
Index’s largest country allocations were to Japan and the U.K. and their smallest allocations were to New Zealand and Portugal.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Novo Nordisk A/S, Class B (Denmark) | |
| | |
| ASML Holding NV (Netherlands) | |
| Toyota Motor Corp. (Japan) | |
| | |
| AstraZeneca plc (United Kingdom) | |
| Novartis AG (Registered) (Switzerland) | |
| LVMH Moet Hennessy Louis Vuitton SE (France) | |
| | |
| TotalEnergies SE (France) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $50.43 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $50.62.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan BetaBuilders International Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (12/3/19 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on December 3, 2019.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders International Equity ETF and Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM (net total return) from December 3, 2019 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM (net total return) is a rules-based,
float-adjusted market capitalization-weighted index designed to cover 85% of the equity float-adjusted market capitalization of the Developed Markets ex-North America equity markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some foreign markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Japan ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® Japan Target Market Exposure IndexSM (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders Japan ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Japan Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free-float adjusted, market capitalization-weighted index, which consists stocks traded primarily on the Tokyo Stock Exchange or the Nagoya Stock Exchange. Using a "passive" investment approach, the Fund attempts to replicate the constituent securities of the Underlying Index as closely as possible, before considering fees and expenses, and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the Fund’s net asset value calculations versus the Underlying Index’s valuation calculations and in the timing of foreign exchange rate calculations, as well as operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the financials and industrials sectors were leading contributors to absolute performance, while their exposures to the health care sector was the sole sector detractor from absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the industrials and consumer discretionary sectors and their smallest allocations were to the energy and utilities sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Toyota Motor Corp. (Japan) | |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | |
| | |
| | |
| | |
| Sumitomo Mitsui Financial Group, Inc. (Japan) | |
| Tokyo Electron Ltd. (Japan) | |
| Shin-Etsu Chemical Co. Ltd. (Japan) | |
| | |
| Mitsui & Co. Ltd. (Japan) | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $48.68 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at
| J.P. Morgan Exchange-Traded Funds | |
the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $49.19.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Japan ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan BetaBuilders Japan ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (6/15/18 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on June 15, 2018.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders Japan ETF and Morningstar® Japan Target Market Exposure IndexSM (net total return) from June 15, 2018 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® Japan Target Market Exposure IndexSM (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. Morningstar® Japan Target Market Exposure IndexSM (net total return) is a rule based, float-adjusted market capitalization-weighted index designed to cover 85% of the equity float-adjusted market capitalization of the Japanese equity markets. Net total return figures assume the reinvestment of
dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® US Target Market Exposure IndexSM | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders U.S. Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Target Market Exposure IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index is a free float adjusted, market capitalization-weighted index consisting of equity securities traded primarily in the U.S. It targets 85% of those stocks by market capitalization and primarily includes large- and mid-cap companies. Using a "passive" investment approach, the Fund attempts to closely correspond to the performance of the Underlying Index and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023 and performed in line with the Underlying Index, before considering the effects of operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the information technology and communication services sectors were leading contributors to absolute performance, while their exposures to the health care and financials sectors detracted from absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the information technology and health care sectors, while their smallest allocations were to
the materials and real estate sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| | |
| Meta Platforms, Inc., Class A | |
| | |
| Berkshire Hathaway, Inc., Class B | |
| | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $75.32 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $75.33.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan BetaBuilders U.S. Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (3/12/19 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on March 12, 2019.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders U.S. Equity ETF and the Morningstar® US Target Market Exposure IndexSM from March 12, 2019 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® US Target Market Exposure IndexSM does not
reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. Morningstar® US Target Market Exposure IndexSM is a free float-adjusted market capitalization-weighted index which consists of stocks traded primarily on the U.S. stock exchanges. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® US Mid Cap Target Market Exposure Extended IndexSM | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Mid Cap Target Market Exposure Extended IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index consists of mid-cap equity securities traded primarily in the U.S. It targets those securities that fall between the 85th and 95th percentiles in market capitalization of the free float adjusted investable universe. Using a "passive" investment approach, the Fund attempts to closely correspond to the performance of the Underlying Index and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a negative absolute return for the twelve months ended October 31, 2023 and performed in line with the Underlying Index, before considering the effects of operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the health care and financials sectors were leading detractors from absolute performance, while their exposures to the industrials and information technology sectors were leading contributors to absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the industrials and financials sectors, while their smallest allocations were to communication
services and utilities sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| First Citizens BancShares, Inc., Class A | |
| | |
| | |
| | |
| Reliance Steel & Aluminum Co. | |
| | |
| | |
| Builders FirstSource, Inc. | |
| DraftKings, Inc., Class A | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $71.06 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on
| J.P. Morgan Exchange-Traded Funds | |
the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $71.06.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (4/14/20 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on April 14, 2020.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders U.S. Mid Cap Equity ETF and Morningstar® US Mid Cap Target Market Exposure Extended IndexSM from April 14, 2020 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® US Mid Cap Target Market Exposure
Extended IndexSM does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® US Mid Cap Target Market Exposure Extended IndexSM is a free float adjusted market capitalization weighted index that consists of mid cap U.S. equity securities. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
Morningstar® US Small Cap Target Market Exposure Extended IndexSM | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Small Cap Target Market Exposure Extended IndexSM (the "Underlying Index").
INVESTMENT APPROACH
The Underlying Index primarily consists of small-cap equity securities primarily traded in the U.S. It targets those securities that fall between the 95th and 99th percentiles in market capitalization of the free float adjusted investable universe. Using a "passive" investment approach, the Fund attempts to closely correspond to the performance of the Underlying Index and invests in substantially all of the securities in the Underlying Index in approximately the same proportions as the Underlying Index.
HOW DID THE FUND PERFORM?
The Fund generated a negative absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of operating expenses, fees and tax management of the Fund’s portfolio.
The Fund’s and the Underlying Index’s exposures to the health care and financials sectors were leading detractors from absolute performance, while their exposures to the energy and industrials sectors were leading contributors to absolute performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the financials and industrials sectors and their smallest allocations were to the utilities and
materials sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Patterson-UTI Energy, Inc. | |
| | |
| Equitrans Midstream Corp. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $49.40 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $49.32.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (11/16/20 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 16, 2020.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan BetaBuilders U.S. Small Cap Equity ETF and Morningstar® US Small Cap Target Market Exposure Extended IndexSM from November 16, 2020 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the Morningstar® US Small Cap Target
Market Exposure Extended IndexSM does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Morningstar® US Small Cap Target Market Exposure Extended IndexSM is a free float-adjusted market capitalization-weighted index that consists of small cap U.S. equity securities. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JPMorgan Asset Management Carbon Transition U.S. Equity Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Carbon Transition U.S. Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JPMorgan Asset Management Carbon Transition U.S. Equity Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which primarily tracks large- and mid-cap equity securities of companies located in the U.S. and is designed to capture the performance of companies that have been identified through the Underlying Index’s rules-based process as better positioned to benefit from a transition to a lower carbon economy while also providing broader U.S. market exposure. Companies are then evaluated based on the rules-based process to determine how they effectively manage emissions, resources and carbon-related risks and are ranked within each sector.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. Both the Fund and the Underlying Index performed in line with the Russell 1000 Index, which is a more traditional market capitalization-weighted index.
The Fund’s and the Underlying Index’s exposures to the technology and consumer discretionary sectors were leading contributors to absolute performance, while their exposures to the health care and energy sectors were leading detractors from absolute performance.
Relative to the Russell 1000 Index, the Fund’s and the Underlying Index’s exposures within the technology and consumer discretionary sectors were leading contributors to performance, while their exposures within the industrials and financials sectors were leading detractors from relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the technology and consumer discretionary sectors, while their smallest allocations
were to the basic materials and telecommunications sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| Meta Platforms, Inc., Class A | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects
| J.P. Morgan Exchange-Traded Funds | |
adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $56.73 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $56.74.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan Carbon Transition U.S. Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (12/9/20 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on December 9, 2020.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Carbon Transition U.S. Equity ETF, the JPMorgan Asset Management Carbon Transition U.S. Equity Index and the Russell 1000 Index from December 9, 2020 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JPMorgan Asset Management Carbon Transition U.S. Equity Index and Russell 1000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if
applicable. The JPMorgan Asset Management Carbon Transition U.S. Equity Index is a rules-based, proprietary index designed to achieve a meaningful reduction in carbon intensity without relying on significant exclusions or sector deviations. It is a proprietary index designed to reflect the performance of a subset of the U.S. large and midcap companies in developed markets that, based on the index rules, are determined to be best positioned to benefit from a transition to a low-carbon economy. The Russell 1000 Index is a market capitalization-weighted index, which measures the performance of the 1,000 largest companies in the Russell 3000 Index. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan Diversified Factor Emerging Markets Equity Index (net total return) | |
FTSE Emerging Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Diversified Return Emerging Markets Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor Emerging Markets Equity Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap equity securities from emerging markets, diversified across regions, super-sectors and individual securities. The Underlying Index uses a proprietary multi-factor selection process that utilizes the following characteristics: value, momentum and quality. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering differences in the net asset value calculations and foreign exchange pricing between the Underlying Index and the Fund and fees and operating expenses incurred by the Fund. The Fund and the Underlying Index underperformed the FTSE Emerging Index, which is a more traditional market capitalization-weighted index.
From a super-sector perspective, the Fund’s and the Underlying Index’s positions in the industrials and consumer super-sectors
were leading contributors to absolute performance, while their positions in the commodities and defensives super-sectors were the smallest contributors to absolute performance and no super-sector detracted from absolute performance.
From a regional perspective, the Fund’s and the Underlying Index’s positions in China and in the Europe, Middle East and Africa region were leading contributors to absolute performance, while their positions in Latin America and Asia Pacific, excluding China, were the smallest regional contributors to absolute performance and no region detracted from absolute performance.
Relative to the FTSE Emerging Index, the Fund’s and the Underlying Index’s underweight positions in China were leading detractors from performance, while their underweight positions within Europe, the Middle East and Africa and their overweight positions in Latin America were leading contributors to performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the defensives and the consumer super-sector, while their smallest allocations were to the commodities and financials super-sectors. The Fund’s and the Underlying Index’s largest regional allocations were to Asia Pacific and Europe, Middle East and Africa while their smallest
allocations were to China and Latin America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $48.12 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $47.99.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| Petroleo Brasileiro SA (Preference) (Brazil) | |
| | |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | |
| Hindustan Unilever Ltd. (India) | |
| Grupo Financiero Banorte SAB de CV, Class O (Mexico) | |
| Tata Consultancy Services Ltd. (India) | |
| Bank of China Ltd., Class H (China) | |
| Saudi Arabian Oil Co. (Saudi Arabia) | |
| Reliance Industries Ltd. (India) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan Diversified Return Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (1/7/15 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on January 7, 2015.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Diversified Return Emerging Markets Equity ETF, the JP Morgan Diversified Factor Emerging Markets Equity Index (net total return) and the FTSE Emerging Index (net total return) from January 7, 2015 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan Diversified Factor Emerging Markets Equity Index (net total return) and the FTSE Emerging Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan Diversified Factor Emerging Markets Equity Index (net total return) and developed the proprietary factors on which the index is based. FTSE Russell, the benchmark administrator, administers, calculates and governs the JP Morgan Diversified Factor Emerging Markets Equity Index (net total return). JP Morgan Diversified Factor Emerging Markets Equity Index (net total return) is comprised of large- and mid-cap equity securities selected from the FTSE Emerging Index (net total return). The index is
designed to reflect the performance of emerging market securities representing the following diversified set of factors: value, momentum and quality. The FTSE Emerging Index (net total return) provides investors with a comprehensive means of measuring the performance of the most liquid companies in the emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan Diversified Factor International Equity Index (net total return) | |
FTSE Developed ex North America Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Diversified Return International Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor International Equity Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap equity securities in developed markets outside of North America, diversified across regions, sectors and individual securities. The Underlying Index uses a proprietary multi-factor selection process that utilizes the following characteristics: value, momentum and quality. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering the effects of differences in the Fund’s net asset value calculations versus the Underlying Index’s valuation calculations, as well as differences due to specific trading limits, the Fund’s small cash allocation and fees and operating expenses incurred by the Fund. The Fund and the Underlying Index outperformed the FTSE Developed ex North America Index, which is a more traditional market capitalization-weighted index.
From a sector perspective, the Fund’s and the Underlying Index’s positions in the utilities and financials sectors were leading contributors to absolute performance, while their positions in the real estate and telecommunication sectors were the smallest contributors to absolute performance and no sectors detracted from absolute performance.
From a regional perspective, the Fund’s and Underlying Index’s positions in Japan and Europe, excluding the U.K., were leading contributors to absolute performance. Their positions in the Pacific region, excluding Japan, and in the U.K. were the smallest contributors to absolute performance and no regions detracted from absolute performance.
Relative to the FTSE Developed ex North America Index, the Fund’s and the Underlying Index’s multi-factor security selections in the consumer staples and industrials sectors were leading contributors to performance, while their overweight positions in the real estate sector and their underweight positions in the financials sector were leading detractors from relative performance.
The Fund’s and the Underlying Index’s multi-factor security selections in Japan and the Pacific region were leading contributors to relative performance, while their multi-factor security selections in Europe, excluding the U.K., and their overweight positions in the Pacific, excluding Japan, were leading detractors from relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the consumer staples and industrials sectors, while their smallest allocations were to the energy and telecommunications sectors. By region, the Fund’s and the Underlying Index’s largest allocations were to Japan and Pacific and their smallest allocations were to Europe and the U.K.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $49.05 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $49.17.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| BAE Systems plc (United Kingdom) | |
| Deutsche Telekom AG (Registered) (Germany) | |
| Novo Nordisk A/S, Class B (Denmark) | |
| Japan Tobacco, Inc. (Japan) | |
| | |
| Wolters Kluwer NV (Netherlands) | |
| Lenovo Group Ltd. (China) | |
| Origin Energy Ltd. (Australia) | |
| TotalEnergies SE (France) | |
| HSBC Holdings plc (United Kingdom) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan Diversified Return International Equity ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (11/5/14 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 5, 2014.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Diversified Return International Equity ETF, the JP Morgan Diversified Factor International Equity Index (net total return) and the FTSE Developed ex North America Index (net total return) from November 5, 2014 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan Diversified Factor International Equity Index (net total return) and the FTSE Developed ex North America Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan Diversified Factor International Equity Index (net total return) and developed the proprietary factors on which the index is based. FTSE Russell, the benchmark administrator, administers, calculates and governs the JP Morgan Diversified Factor International Equity Index (net total return). JP Morgan Diversified Factor International Equity Index (net total return) is comprised of large- and mid-cap equity securities selected from the FTSE Developed ex North America Index (net total return). The index is designed to reflect the performance of stocks representing the following diversified set of
factors: value, momentum and quality. The FTSE Developed ex North America Index (net total return) is part of a range of indices designed to help investors benchmark their international investments. The index comprises large- and mid-cap stocks providing coverage of developed markets, excluding the US and Canada. The index is derived from the FTSE Global Equity Index Series (GEIS), which covers 98% of the world's investable market capitalization. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan Diversified Factor US Equity Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Diversified Return U.S. Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Equity Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap equity securities of U.S. companies, diversified across sectors and individual securities. The Underlying Index uses a rules-based proprietary multi-factor selection process that utilizes the following characteristics: value, momentum and quality. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund produced a negative absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. Both the Fund and the Underlying Index underperformed the Russell 1000 Index, which is a more traditional market capitalization-weighted index.
The Fund’s and the Underlying Index’s positions in the consumer staples and telecommunications sectors were leading detractors from absolute performance, while their positions in the technology and industrials sectors were leading contributors to absolute performance.
Relative to the Russell 1000 Index, the Fund’s and the Underlying Index’s underweight positions in the technology sector and their overweight positions in the utilities sector were leading detractors from performance, while their multi-factor security selections in the utilities and health care sectors were leading contributors to relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the consumer staples and health care sectors, while their smallest allocations were to the telecommunications and energy sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Casey's General Stores, Inc. | |
| | |
| | |
| | |
| | |
| | |
| United States Steel Corp. | |
| | |
| Vertex Pharmaceuticals, Inc. | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $91.34 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $91.34.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan Diversified Return U.S. Equity ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (9/29/15 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 29, 2015.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Diversified Return U.S. Equity ETF, the JP Morgan Diversified Factor US Equity Index, and the Russell 1000 Index from September 29, 2015 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan Diversified Factor US Equity Index and Russell 1000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan Diversified Factor US Equity Index and developed the proprietary factors on which the index is based. FTSE Russell, the benchmark administrator,
administers, calculates and governs the JP Morgan Diversified Factor US Equity Index. JP Morgan Diversified Factor US Equity Index is comprised of U.S. large and mid-cap equity securities selected from the constituents of the Russell 1000 Index. The index is designed to reflect the performance of stocks representing the following diversified set of factors: value, momentum and quality. The Russell 1000 Index is a market capitalization-weighted index, which measures the performance of the 1,000 largest companies in the Russell 3000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan Diversified Factor US Mid Cap Equity Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Diversified Return U.S. Mid Cap Equity ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Mid Cap Equity Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks mid-cap U.S. equity securities diversified across sectors and individual securities. The Underlying Index uses a proprietary multi-factor selection process that utilizes the following characteristics: value, momentum and quality. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund provided a positive absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. The Fund and the Underlying Index underperformed the Russell Midcap Index, which is a more traditional market capitalization weighted index.
The Fund’s and the Underlying Index’s positions in the telecommunications and real estate sectors were leading detractors from absolute performance, while the Fund’s and the Underlying Index’s positions in the industrials and technology sectors were leading contributors to absolute performance.
Relative to the Russell Midcap Index, the Fund’s and the Underlying Index’s multi-factor security selections in the telecommunications sector and their underweight positions in the industrials sector were leading detractors from performance, while their multi-factor security selections in the health care and basic materials sectors were leading contributors to performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the health care and industrials sectors and their smallest allocations were to the telecommunications and energy sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Casey's General Stores, Inc. | |
| United States Steel Corp. | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $80.54 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the
| J.P. Morgan Exchange-Traded Funds | |
market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $80.44.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (5/11/16 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on May 11, 2016.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Diversified Return U.S. Mid Cap Equity ETF, JP Morgan Diversified Factor US Mid Cap Equity Index and the Russell Midcap Index from May 11, 2016 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan Diversified Factor US Mid Cap Equity Index and Russell Midcap Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan Diversified Factor US Mid Cap Equity Index and developed the proprietary factors on which the index is based. FTSE Russell,
the benchmark administrator, administers, calculates and governs the JP Morgan Diversified Factor US Mid Cap Equity Index. The JP Morgan Diversified Factor US Mid Cap Equity Index is comprised of U.S. mid-cap equity securities selected from the Russell Midcap Index. The index is designed to reflect the performance of stocks representing the following diversified set of factors: value, momentum and quality. The Russell Midcap Index is a market capitalization-weighted index which measures the performance of the 800 smallest companies in the Russell 1000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan Diversified Factor US Small Cap Equity Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Diversified Return U.S. Small Cap Equity ETF (the “Fund”) 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 “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks small-cap equity securities of U.S. companies, diversified across sectors and individual securities. The Underlying Index uses a proprietary multi-factor selection process that utilizes the following characteristics: value, momentum and quality. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund posted a negative absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. Both the Fund and the Underlying Index outperformed the Russell 2000 Index, which is a more traditional market capitalization-weighted index.
The Fund’s and the Underlying Index’s positions in the health care and telecommunications sectors were leading detractors from absolute performance, while their positions in the industrials and energy sectors were leading contributors to absolute performance.
Relative to the Russell 2000 Index, the Fund’s and the Underlying Index’s multi-factor security selections and underweight positions in the health care and financials sectors were leading contributors to performance, while their overweight positions in the telecommunications sector and their underweight positions in the industrials sector were leading detractors from relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the financials and industrials sectors, while their smallest allocations were to the telecommunications and utilities sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| Teekay Tankers Ltd., Class A (Canada) | |
| Sprouts Farmers Market, Inc. | |
| | |
| Sabra Health Care REIT, Inc. | |
| | |
| Apple Hospitality REIT, Inc. | |
| Phillips Edison & Co., Inc. | |
| Simply Good Foods Co. (The) | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $37.31 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $37.30.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (11/15/16 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 15, 2016.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Diversified Return U.S. Small Cap Equity ETF, the JP Morgan Diversified Factor US Small Cap Equity Index and the Russell 2000 Index from November 15, 2016 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan Diversified Factor US Small Cap Equity Index and Russell 2000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan Diversified Factor US Small Cap Equity Index and developed the proprietary factors on which the index is based. FTSE Russell,
the benchmark administrator, administers, calculates and governs the JP Morgan Diversified Factor US Small Cap Equity Index. The JP Morgan Diversified Factor US Small Cap Equity Index is comprised of U.S. small cap equity securities selected from the Russell 2000 Index. The index is designed to reflect the performance of stocks representing the following diversified set of factors: value, momentum and quality. The Russell 2000 Index is an unmanaged index, measuring performance of the 2000 smallest stocks (on the basis of capitalization) in the Russell 3000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Momentum Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan US Momentum Factor Index | |
Russell 1000 Growth Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan U.S. Momentum Factor ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Momentum Factor Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap U.S. equity securities selected to represent positive momentum factor characteristics. The Underlying Index uses a proprietary selection process that utilizes a momentum factor to identify companies that have higher risk-adjusted returns relative to those of their sector peers over a twelve-month period. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute performance for the twelve months ended October 31, 2023 and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. The Fund and the Underlying Index underperformed both the Russell 1000 Growth Index and the Russell 1000 Index, which are more traditional market capitalization-weighted indexes.
On an absolute basis, the Fund’s and the Underlying Index’s positions in the technology and industrials sectors were leading contributors to performance, while their positions in the consumer staples and energy sectors were leading detractors from performance.
Relative to the Russell 1000 Growth Index, the Fund’s and the Underlying Index’s security selections and underweight positions in the technology sector and their security selections in the consumer discretionary sector were leading detractors from performance, while their security selections in the energy sector and underweight positions in the consumer discretionary sector were the largest contributors to relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and Underlying Index’s largest allocations were to the technology and consumer
discretionary sectors and their smallest allocations were to the basic materials and telecommunications sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Meta Platforms, Inc., Class A | |
| | |
| | |
| | |
| Berkshire Hathaway, Inc., Class B | |
| | |
| | |
| | |
| | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects
| J.P. Morgan Exchange-Traded Funds | |
adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $39.99 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $39.99.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Momentum Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan U.S. Momentum Factor ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (11/8/17 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 8, 2017.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan U.S. Momentum Factor ETF, the JP Morgan US Momentum Factor Index, the Russell 1000 Growth Index and the Russell 1000 Index from November 8, 2017 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan US Momentum Factor Index, Russell 1000 Growth Index and Russell 1000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan US Momentum Factor Index and developed the proprietary factors on which the index is based. FTSE International Limited, the benchmark administrator, administers, calculates and governs the JP Morgan US Momentum Factor Index. The JP Morgan US
Momentum Factor Index contains U.S. large- and mid-cap equity securities selected from the Russell 1000 Index, using a rules-based risk allocation and factor selection process. It is designed to reflect a subset of U.S. securities selected utilizing a momentum factor to identify companies that have had better recent performance compared to other securities without undue concentration in individual securities. The Russell 1000 Growth Index is an unmanaged index measuring the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Russell 1000 Index is a market capitalization-weighted index, which measures the performance of the 1,000 largest companies in the Russell 3000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Quality Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan US Quality Factor Index | |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan U.S. Quality Factor ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Quality Factor Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap U.S. equity securities selected to represent quality factor characteristics. The Underlying Index uses a proprietary selection process that utilizes a quality factor to identify higher quality companies relative to their sector peers as measured by profitability, earnings quality and solvency/financial risk. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute performance for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. Both the Fund and the Underlying Index outperformed the Russell 1000 Index, which is a more traditional market capitalization-weighted index.
On an absolute basis, the Fund’s and the Underlying Index’s positions in the technology and financials sectors were leading contributors to performance, while their positions in the energy and real estate sectors were leading detractors from performance.
Relative to the Russell 1000 Index, the Fund’s and the Underlying Index’s security selections in the technology and financials sectors were leading contributors to performance. The Fund’s and the Underlying Index’s security selections in the consumer discretionary and telecommunications sectors were leading detractors from relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the technology and consumer discretionary sectors, while their smallest allocations were to the basic materials and telecommunications sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Meta Platforms, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| Berkshire Hathaway, Inc., Class B | |
| | |
| | |
| Procter & Gamble Co. (The) | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $42.18 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Quality Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $42.20.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan U.S. Quality Factor ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (11/8/17 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 8, 2017.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan U.S. Quality Factor ETF, the JP Morgan US Quality Factor Index and the Russell 1000 Index from November 8, 2017 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan US Quality Factor Index and Russell 1000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan US Quality Factor Index and developed the proprietary factors on which the index is based. FTSE International Limited, the benchmark administrator, administers, calculates and
governs the JP Morgan US Quality Factor Index. The JP Morgan US Quality Factor Index contains U.S. large- and mid-cap equity securities selected from the Russell 1000 Index, using a rules-based risk allocation and factor selection process. It is designed to reflect a sub-set of U.S. securities selected utilizing a quality factor to identifying higher quality companies as measured by profitability, solvency, and earnings quality without undue concentration in individual securities. The Russell 1000 Index is a market capitalization-weighted index, which measures the performance of the 1,000 largest companies in the Russell 3000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
JP Morgan US Value Factor Index | |
| |
| |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan U.S. Value Factor ETF (the “Fund”) seeks investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Value Factor Index (the “Underlying Index”).
INVESTMENT APPROACH
The Fund is passively managed to the Underlying Index, which tracks large- and mid-cap U.S. equity securities selected to represent value factor characteristics. The Underlying Index uses a proprietary selection process that utilizes a relative valuation factor to identify companies with attractive prices relative to their sector peers based on fundamental characteristics of book yield, earnings yield, dividend yield and cash flow yield. The Underlying Index’s methodology includes quarterly rebalancing.
HOW DID THE FUND PERFORM?
The Fund generated a positive absolute return for the twelve months ended October 31, 2023, and performed in line with the Underlying Index, before considering operating expenses, fees and tax management of the Fund’s portfolio. The Fund and the Underlying Index outperformed the Russell 1000 Value Index and underperformed the Russell 1000 Index, which are more traditional market capitalization-weighted indexes.
On an absolute basis, the Fund’s and the Underlying Index’s positions in the technology and industrials sectors were leading contributors to performance, while their positions in the health care and financials sectors were leading detractors from performance.
Relative to the Russell 1000 Value Index, the Fund’s and the Underlying Index’s overweight positions in the technology sector and their security selections in the energy sector were leading contributors to performance. The Fund’s and the Underlying Index’s security selections in the technology and financials sectors were leading detractors from relative performance.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s and the Underlying Index’s largest allocations were to the technology and
consumer discretionary sectors, while their smallest allocations were to the basic materials and telecommunication sectors.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Meta Platforms, Inc., Class A | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects
| J.P. Morgan Exchange-Traded Funds | |
adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $33.35 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $33.33.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan U.S. Value Factor ETF | | | | |
| | | | |
| | | | |
LIFE OF FUND PERFORMANCE (11/8/17 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on November 8, 2017.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan U.S. Value Factor ETF, the JP Morgan US Value Factor Index, the Russell 1000 Value Index and the Russell 1000 Index from November 8, 2017 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the JP Morgan US Value Factor Index, Russell 1000 Value Index and Russell 1000 Index does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the index, if applicable. The Fund’s adviser is a sponsor of the JP Morgan US Value Factor Index and developed the proprietary factors on which the index is based. FTSE International Limited, the benchmark administrator, administers, calculates and governs the JP Morgan US Value Factor Index. The JP Morgan US Value Factor Index contains U.S. large- and
mid-cap equity securities selected from the Russell 1000 Index, using a rules-based risk allocation and factor selection process. It is designed to reflect a sub-set of U.S. securities selected utilizing a value factor to identify companies with attractive valuations without undue concentration in individual securities. The Russell 1000 Value Index is an unmanaged index measuring the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index is a market capitalization-weighted index, which measures the performance of the 1,000 largest companies in the Russell 3000 Index. Investors cannot invest directly in an index.
For periods presented prior to November 1, 2019, the date on which a unitary fee structure was adopted, Fund performance reflects the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Canada ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.4% |
| | |
Automobile Components — 0.8% |
Magna International, Inc. | | |
|
| | |
Bank of Nova Scotia (The) | | |
Canadian Imperial Bank of Commerce | | |
| | |
| | |
Toronto-Dominion Bank (The) | | |
| | |
|
Canadian Tire Corp. Ltd., Class A (a) | | |
| | |
| | |
|
Brookfield Asset Management Ltd., Class A | | |
| | |
| | |
| | |
| | |
|
| | |
Commercial Services & Supplies — 3.1% |
| | |
| | |
Waste Connections, Inc. (a) | | |
| | |
Construction & Engineering — 1.0% |
| | |
Consumer Staples Distribution & Retail — 4.5% |
Alimentation Couche-Tard, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Containers & Packaging — 0.3% |
CCL Industries, Inc., Class B | | |
| | |
|
Diversified Telecommunication Services — 1.3% |
| | |
| | |
| | |
| | |
Electric Utilities — 2.2% |
| | |
| | |
| | |
| | |
Financial Services — 0.1% |
| | |
|
| | |
|
| | |
Ground Transportation — 8.3% |
Canadian National Railway Co. | | |
Canadian Pacific Kansas City Ltd. | | |
| | |
| | |
Health Care Equipment & Supplies — 0.0% ^ |
| | |
Hotels, Restaurants & Leisure — 1.3% |
Restaurant Brands International, Inc. | | |
Independent Power and Renewable Electricity Producers — 0.2% |
Brookfield Renewable Corp. | | |
|
Fairfax Financial Holdings Ltd. | | |
| | |
| | |
| | |
| | |
Power Corp. of Canada (a) | | |
| | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Canada ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
First Quantum Minerals Ltd. | | |
| | |
Ivanhoe Mines Ltd., Class A * (a) | | |
| | |
| | |
Teck Resources Ltd., Class B | | |
Wheaton Precious Metals Corp. | | |
| | |
|
Algonquin Power & Utilities Corp. (a) | | |
Canadian Utilities Ltd., Class A (a) | | |
| | |
Oil, Gas & Consumable Fuels — 19.2% |
| | |
| | |
Canadian Natural Resources Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Paper & Forest Products — 0.2% |
West Fraser Timber Co. Ltd. | | |
Passenger Airlines — 0.3% |
| | |
Professional Services — 1.1% |
| | |
Real Estate Management & Development — 0.4% |
| | |
|
Canadian Apartment Properties | | |
|
| | |
| | |
|
|
Constellation Software, Inc. | | |
| | |
| | |
Textiles, Apparel & Luxury Goods — 0.3% |
| | |
Trading Companies & Distributors — 0.2% |
Finning International, Inc. | | |
Wireless Telecommunication Services — 0.8% |
Rogers Communications, Inc., Class B | | |
Total Common Stocks
(Cost $5,430,073,969) | | |
| | |
|
|
Constellation Software, Inc., Zero Coupon, 3/31/2040 ‡ *
(Cost $-) | | |
| | |
Short-Term Investments — 3.2% |
Investment of Cash Collateral from Securities Loaned — 3.2% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (d) (e) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (d) (e) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $184,371,831) | | |
Total Investments — 102.7%
(Cost $5,614,445,800) | | |
Liabilities in Excess of Other Assets — (2.7)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Amount rounds to less than 0.1% of net assets. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $174,280,525. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
Fortescue Metals Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
Pilbara Minerals Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Seven Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
Washington H Soul Pattinson & Co. Ltd. (a) | | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
Budweiser Brewing Co. APAC Ltd. (b) | | |
| | |
Wharf Holdings Ltd. (The) | | |
Wilmar International Ltd. | | |
Wuxi Biologics Cayman, Inc. * (b) | | |
| | |
|
| | |
| | |
CK Infrastructure Holdings Ltd. | | |
| | |
DFI Retail Group Holdings Ltd. | | |
Hang Lung Properties Ltd. | | |
| | |
Henderson Land Development Co. Ltd. | | |
HK Electric Investments & HK Electric Investments Ltd. (b) | | |
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
New World Development Co. Ltd. | | |
Power Assets Holdings Ltd. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., Class A | | |
Swire Pacific Ltd., Class B | | |
| | |
Techtronic Industries Co. Ltd. | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
| | |
|
Galaxy Entertainment Group Ltd. | | |
| | |
| | |
|
Auckland International Airport Ltd. | | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
|
CapitaLand Ascendas, REIT | | |
CapitaLand Integrated Commercial Trust, REIT | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
| | |
Great Eastern Holdings Ltd. | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
| | |
Mapletree Pan Asia Commercial Trust, REIT | | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
United Overseas Bank Ltd. | | |
| | |
|
|
| | |
| | |
| | |
|
CK Hutchison Holdings Ltd. | | |
|
| | |
James Hardie Industries plc, CHDI * | | |
| | |
Total Common Stocks
(Cost $4,390,199,215) | | |
Short-Term Investments — 0.3% |
Investment of Cash Collateral from Securities Loaned — 0.3% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d)(Cost $11,792,130) | | |
Total Investments — 99.9%
(Cost $4,401,991,345) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Clearing House Electronic Subregister System (CHESS) Depository Interest |
| Real Estate Investment Trust |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $11,180,067. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
Real Estate Management & Development | |
Oil, Gas & Consumable Fuels | |
Consumer Staples Distribution & Retail | |
Hotels, Restaurants & Leisure | |
| |
| |
| |
Diversified Telecommunication Services | |
Transportation Infrastructure | |
| |
| |
Life Sciences Tools & Services | |
Health Care Equipment & Supplies | |
Others (each less than 1.0%) | |
| |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| |
| |
| Morgan Stanley Capital International |
| |
| Australian Securities Exchange |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
Yancoal Australia Ltd. (a) | | |
|
| | |
| | |
B3 SA - Brasil Bolsa Balcao | | |
| | |
Banco Bradesco SA (Preference) | | |
| | |
| | |
BB Seguridade Participacoes SA | | |
Braskem SA (Preference), Class A * | | |
| | |
Centrais Eletricas Brasileiras SA | | |
Centrais Eletricas Brasileiras SA (Preference) | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP | | |
Cia Energetica de Minas Gerais | | |
Cia Energetica de Minas Gerais (Preference) | | |
Cia Paranaense de Energia * | | |
Cia Siderurgica Nacional SA | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hapvida Participacoes e Investimentos SA * (b) | | |
| | |
Itau Unibanco Holding SA (Preference) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Natura & Co. Holding SA * | | |
| | |
Petroleo Brasileiro SA (Preference) | | |
| | |
| | |
Rede D'Or Sao Luiz SA (b) | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
Transmissora Alianca de Energia Eletrica S/A | | |
| | |
| | |
| | |
| | |
|
| | |
Banco de Credito e Inversiones SA | | |
| | |
| | |
| | |
Cia Cervecerias Unidas SA | | |
Cia Sud Americana de Vapores SA | | |
| | |
| | |
| | |
| | |
| | |
Latam Airlines Group SA * | | |
Sociedad Quimica y Minera de Chile SA (Preference), Class B | | |
| | |
|
360 Security Technology, Inc., Class A * | | |
37 Interactive Entertainment Network Technology Group Co. Ltd. | | |
AAC Technologies Holdings, Inc. | | |
AECC Aviation Power Co. Ltd., Class A | | |
Agricultural Bank of China Ltd., Class A | | |
Agricultural Bank of China Ltd., Class H | | |
| | |
Airtac International Group | | |
| | |
Alibaba Group Holding Ltd. * | | |
Alibaba Health Information Technology Ltd. * | | |
Aluminum Corp. of China Ltd., Class A | | |
Aluminum Corp. of China Ltd., Class H | | |
Anhui Conch Cement Co. Ltd., Class A | | |
Anhui Conch Cement Co. Ltd., Class H | | |
Anhui Gujing Distillery Co. Ltd., Class A | | |
Anhui Gujing Distillery Co. Ltd., Class B | | |
Anjoy Foods Group Co. Ltd., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
ANTA Sports Products Ltd. | | |
Asymchem Laboratories Tianjin Co. Ltd., Class A | | |
| | |
Avary Holding Shenzhen Co. Ltd., Class A | | |
AviChina Industry & Technology Co. Ltd., Class H | | |
| | |
Baiyin Nonferrous Group Co. Ltd., Class A | | |
Bank of Beijing Co. Ltd., Class A | | |
Bank of China Ltd., Class A | | |
Bank of China Ltd., Class H | | |
Bank of Communications Co. Ltd., Class A | | |
Bank of Communications Co. Ltd., Class H | | |
Bank of Hangzhou Co. Ltd., Class A | | |
Bank of Jiangsu Co. Ltd., Class A | | |
Bank of Nanjing Co. Ltd., Class A | | |
Bank of Ningbo Co. Ltd., Class A | | |
Baoshan Iron & Steel Co. Ltd., Class A | | |
| | |
Beijing Enterprises Holdings Ltd. | | |
Beijing Enterprises Water Group Ltd. | | |
Beijing Kingsoft Office Software, Inc., Class A | | |
Beijing Tongrentang Co. Ltd., Class A | | |
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A | | |
Bilibili, Inc., Class Z * | | |
Bloomage Biotechnology Corp. Ltd., Class A | | |
| | |
BOC Hong Kong Holdings Ltd. | | |
BOE Technology Group Co. Ltd., Class A | | |
Bosideng International Holdings Ltd. | | |
| | |
| | |
BYD Electronic International Co. Ltd. | | |
C&D International Investment Group Ltd. | | |
Cambricon Technologies Corp. Ltd., Class A * | | |
CGN Power Co. Ltd., Class H (b) | | |
Changchun High & New Technology Industry Group, Inc., Class A | | |
Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A | | |
China CITIC Bank Corp. Ltd., Class H | | |
China Coal Energy Co. Ltd., Class H | | |
China Conch Venture Holdings Ltd. | | |
| | |
|
|
China Construction Bank Corp., Class H | | |
China CSSC Holdings Ltd., Class A | | |
China Eastern Airlines Corp. Ltd., Class A * | | |
China Everbright Bank Co. Ltd., Class A | | |
China Everbright Environment Group Ltd. | | |
| | |
China First Heavy Industries Co. Ltd., Class A * | | |
China Galaxy Securities Co. Ltd., Class H | | |
| | |
China Hainan Rubber Industry Group Co. Ltd., Class A * | | |
China Hongqiao Group Ltd. | | |
China International Capital Corp. Ltd., Class A | | |
China International Capital Corp. Ltd., Class H (b) | | |
China International Marine Containers Group Co. Ltd., Class A | | |
China Jushi Co. Ltd., Class A | | |
China Lesso Group Holdings Ltd. | | |
China Life Insurance Co. Ltd., Class H | | |
China Literature Ltd. * (b) | | |
China Longyuan Power Group Corp. Ltd., Class H | | |
China Medical System Holdings Ltd. | | |
China Mengniu Dairy Co. Ltd. | | |
China Merchants Bank Co. Ltd., Class A | | |
China Merchants Bank Co. Ltd., Class H | | |
China Merchants Energy Shipping Co. Ltd., Class A | | |
China Merchants Port Holdings Co. Ltd. | | |
China Merchants Securities Co. Ltd., Class A | | |
China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A | | |
China Minsheng Banking Corp. Ltd., Class A | | |
China Minsheng Banking Corp. Ltd., Class H | | |
China National Building Material Co. Ltd., Class H | | |
China National Nuclear Power Co. Ltd., Class A | | |
China Northern Rare Earth Group High-Tech Co. Ltd., Class A | | |
China Oilfield Services Ltd., Class H | | |
China Overseas Land & Investment Ltd. | | |
China Pacific Insurance Group Co. Ltd., Class A | | |
China Pacific Insurance Group Co. Ltd., Class H | | |
China Petroleum & Chemical Corp., Class A | | |
China Petroleum & Chemical Corp., Class H | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
China Power International Development Ltd. | | |
China Railway Group Ltd., Class A | | |
China Railway Group Ltd., Class H | | |
China Resources Beer Holdings Co. Ltd. | | |
China Resources Cement Holdings Ltd. | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Resources Mixc Lifestyle Services Ltd. (b) | | |
China Resources Pharmaceutical Group Ltd. (b) | | |
China Resources Power Holdings Co. Ltd. | | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | | |
China Shenhua Energy Co. Ltd., Class A | | |
China Shenhua Energy Co. Ltd., Class H | | |
China Southern Airlines Co. Ltd., Class A * | | |
China Suntien Green Energy Corp. Ltd., Class A | | |
China Taiping Insurance Holdings Co. Ltd. | | |
China Three Gorges Renewables Group Co. Ltd., Class A | | |
China Tourism Group Duty Free Corp. Ltd., Class A | | |
China Tourism Group Duty Free Corp. Ltd., Class H (b) | | |
China Tower Corp. Ltd., Class H (b) | | |
China Vanke Co. Ltd., Class A | | |
China Vanke Co. Ltd., Class H | | |
China Yangtze Power Co. Ltd., Class A | | |
China Zhenhua Group Science & Technology Co. Ltd., Class A | | |
Chongqing Brewery Co. Ltd., Class A | | |
Chongqing Changan Automobile Co. Ltd., Class A | | |
Chongqing Water Group Co. Ltd., Class A | | |
Chow Tai Fook Jewellery Group Ltd. | | |
| | |
Citic Pacific Special Steel Group Co. Ltd., Class A | | |
CITIC Securities Co. Ltd., Class A | | |
CITIC Securities Co. Ltd., Class H | | |
| | |
| | |
CNPC Capital Co. Ltd., Class A | | |
COSCO SHIPPING Energy Transportation Co. Ltd., Class A | | |
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | | |
COSCO SHIPPING Holdings Co. Ltd., Class H | | |
| | |
|
|
Country Garden Holdings Co. Ltd. * | | |
Country Garden Services Holdings Co. Ltd. | | |
CSPC Pharmaceutical Group Ltd. | | |
Daqin Railway Co. Ltd., Class A | | |
Dongxing Securities Co. Ltd., Class A | | |
East Buy Holding Ltd. * (b) | | |
Eastern Air Logistics Co. Ltd., Class A | | |
Eastroc Beverage Group Co. Ltd., Class A | | |
| | |
ENN Natural Gas Co. Ltd., Class A | | |
Everbright Securities Co. Ltd., Class A | | |
Everdisplay Optronics Shanghai Co. Ltd., Class A * | | |
| | |
Flat Glass Group Co. Ltd., Class A | | |
Flat Glass Group Co. Ltd., Class H * | | |
Focus Media Information Technology Co. Ltd., Class A | | |
Foshan Haitian Flavouring & Food Co. Ltd., Class A | | |
| | |
Foxconn Industrial Internet Co. Ltd., Class A | | |
Full Truck Alliance Co. Ltd., ADR * | | |
Fuyao Glass Industry Group Co. Ltd., Class H (b) | | |
Ganfeng Lithium Group Co. Ltd. (b) | | |
Ganfeng Lithium Group Co. Ltd., Class A | | |
G-bits Network Technology Xiamen Co. Ltd., Class A | | |
GCL Technology Holdings Ltd. | | |
GD Power Development Co. Ltd., Class A | | |
Geely Automobile Holdings Ltd. | | |
Genscript Biotech Corp. * | | |
GF Securities Co. Ltd., Class H | | |
GigaDevice Semiconductor, Inc., Class A | | |
| | |
Great Wall Motor Co. Ltd., Class A | | |
Great Wall Motor Co. Ltd., Class H | | |
Gree Electric Appliances, Inc. of Zhuhai, Class A | | |
Guangdong Haid Group Co. Ltd., Class A | | |
Guangdong Investment Ltd. | | |
Guanghui Energy Co. Ltd., Class A | | |
Guangzhou Automobile Group Co. Ltd., Class H | | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Guangzhou Tinci Materials Technology Co. Ltd., Class A | | |
Guotai Junan Securities Co. Ltd., Class A | | |
| | |
Haidilao International Holding Ltd. (b) | | |
Haier Smart Home Co. Ltd., Class A | | |
Haier Smart Home Co. Ltd., Class H | | |
Hainan Airlines Holding Co. Ltd., Class A * | | |
Hainan Airport Infrastructure Co. Ltd., Class A * | | |
Haitian International Holdings Ltd. | | |
Hangzhou First Applied Material Co. Ltd., Class A | | |
Hansoh Pharmaceutical Group Co. Ltd. (b) | | |
Hengan International Group Co. Ltd. | | |
Hengli Petrochemical Co. Ltd., Class A * | | |
Hisense Home Appliances Group Co. Ltd. | | |
Hopson Development Holdings Ltd. * | | |
Hoshine Silicon Industry Co. Ltd., Class A | | |
Hoyuan Green Energy Co. Ltd. | | |
Hua Hong Semiconductor Ltd. * (b) | | |
Huadian Power International Corp. Ltd., Class A | | |
Huadian Power International Corp. Ltd., Class H | | |
Huadong Medicine Co. Ltd., Class A | | |
Huaneng Power International, Inc., Class A * | | |
Huaneng Power International, Inc., Class H * | | |
Huatai Securities Co. Ltd., Class A | | |
Huatai Securities Co. Ltd., Class H (b) | | |
Huaxia Bank Co. Ltd., Class A | | |
Huayu Automotive Systems Co. Ltd., Class A | | |
Huizhou Desay Sv Automotive Co. Ltd., Class A | | |
Hundsun Technologies, Inc., Class A | | |
Hygeia Healthcare Holdings Co. Ltd. (b) | | |
IEIT Systems Co. Ltd., Class A | | |
Iflytek Co. Ltd., Class A | | |
Industrial & Commercial Bank of China Ltd., Class A | | |
Industrial & Commercial Bank of China Ltd., Class H | | |
Industrial Bank Co. Ltd., Class A | | |
Inner Mongolia BaoTou Steel Union Co. Ltd., Class A * | | |
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | | |
Innovent Biologics, Inc. * (b) | | |
JA Solar Technology Co. Ltd., Class A | | |
| | |
|
|
JCET Group Co. Ltd., Class A | | |
JD Health International, Inc. * (b) | | |
| | |
| | |
Jiangsu Eastern Shenghong Co. Ltd., Class A | | |
Jiangsu Expressway Co. Ltd., Class H | | |
Jiangsu Financial Leasing Co. Ltd., Class A | | |
Jiangsu Hengli Hydraulic Co. Ltd., Class A | | |
Jiangsu Hengrui Pharmaceuticals Co. Ltd., Class A | | |
Jiangsu King's Luck Brewery JSC Ltd., Class A | | |
Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A | | |
Jiangsu Zhongtian Technology Co. Ltd., Class A | | |
Jiangxi Copper Co. Ltd., Class H | | |
Jinko Solar Co. Ltd., Class A | | |
JiuGui Liquor Co. Ltd., Class A | | |
Jointown Pharmaceutical Group Co. Ltd., Class A | | |
Juneyao Airlines Co. Ltd., Class A * | | |
KE Holdings, Inc., Class A | | |
| | |
Kingdee International Software Group Co. Ltd. * | | |
| | |
Kuaishou Technology * (b) | | |
| | |
Kweichow Moutai Co. Ltd., Class A | | |
| | |
| | |
| | |
Liaoning Cheng Da Co. Ltd., Class A | | |
Longfor Group Holdings Ltd. (a) | | |
LONGi Green Energy Technology Co. Ltd., Class A | | |
Luxshare Precision Industry Co. Ltd., Class A | | |
Luzhou Laojiao Co. Ltd., Class A | | |
| | |
Microport Scientific Corp. * | | |
MINISO Group Holding Ltd. | | |
| | |
Montage Technology Co. Ltd., Class A | | |
Muyuan Foods Co. Ltd., Class A | | |
NARI Technology Co. Ltd., Class A | | |
NAURA Technology Group Co. Ltd., Class A | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
New China Life Insurance Co. Ltd., Class A | | |
New China Life Insurance Co. Ltd., Class H | | |
New Oriental Education & Technology Group, Inc. * | | |
| | |
Ningbo Deye Technology Co. Ltd., Class A | | |
Ningbo Tuopu Group Co. Ltd., Class A | | |
Ningxia Baofeng Energy Group Co. Ltd., Class A | | |
| | |
Nongfu Spring Co. Ltd., Class H (b) | | |
Oppein Home Group, Inc., Class A | | |
Orient Securities Co. Ltd., Class A | | |
Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A * | | |
PDD Holdings, Inc., ADR * | | |
People's Insurance Co. Group of China Ltd. (The), Class H | | |
PetroChina Co. Ltd., Class H | | |
PICC Property & Casualty Co. Ltd., Class H | | |
Ping An Bank Co. Ltd., Class A | | |
Ping An Healthcare and Technology Co. Ltd. * (b) | | |
Ping An Insurance Group Co. of China Ltd., Class A | | |
Ping An Insurance Group Co. of China Ltd., Class H | | |
Poly Developments and Holdings Group Co. Ltd., Class A | | |
Postal Savings Bank of China Co. Ltd., Class A | | |
Postal Savings Bank of China Co. Ltd., Class H (b) | | |
Power Construction Corp. of China Ltd., Class A | | |
Qi An Xin Technology Group, Inc., Class A * | | |
Qifu Technology, Inc., Class A | | |
Qinghai Salt Lake Industry Co. Ltd., Class A * | | |
Remegen Co. Ltd., Class H * (b) | | |
Rongsheng Petrochemical Co. Ltd., Class A | | |
SAIC Motor Corp. Ltd., Class A | | |
Sanan Optoelectronics Co. Ltd., Class A | | |
Sany Heavy Equipment International Holdings Co. Ltd. | | |
Sany Heavy Industry Co. Ltd., Class A | | |
Seres Group Co. Ltd., Class A * | | |
SF Holding Co. Ltd., Class A | | |
Shaanxi Beiyuan Chemical Industry Group Co. Ltd., Class A | | |
| | |
|
|
Shaanxi Coal Industry Co. Ltd., Class A | | |
Shandong Gold Mining Co. Ltd., Class A | | |
Shandong Gold Mining Co. Ltd., Class H (b) | | |
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A | | |
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | | |
Shanghai Aiko Solar Energy Co. Ltd., Class A | | |
Shanghai Baosight Software Co. Ltd., Class A | | |
Shanghai Baosight Software Co. Ltd., Class B | | |
Shanghai Electric Group Co. Ltd., Class A * | | |
Shanghai Fosun Pharmaceutical Group Co. Ltd., Class H | | |
Shanghai Fudan Microelectronics Group Co. Ltd., Class H | | |
Shanghai International Airport Co. Ltd., Class A * | | |
Shanghai International Port Group Co. Ltd., Class A | | |
Shanghai Junshi Biosciences Co. Ltd., Class H * (b) | | |
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B | | |
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | | |
Shanghai Pudong Development Bank Co. Ltd., Class A | | |
Shanghai Putailai New Energy Technology Co. Ltd., Class A | | |
Shanghai Rural Commercial Bank Co. Ltd., Class A | | |
Shanxi Coking Coal Energy Group Co. Ltd., Class A | | |
Shanxi Lu'an Environmental Energy Development Co. Ltd., Class A | | |
Shanxi Meijin Energy Co. Ltd., Class A * | | |
Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A | | |
Shede Spirits Co. Ltd., Class A | | |
Shenwan Hongyuan Group Co. Ltd., Class A | | |
Shenzhen SED Industry Co. Ltd., Class A | | |
Shenzhen Transsion Holdings Co. Ltd., Class A | | |
Shenzhou International Group Holdings Ltd. | | |
| | |
Sinomach Heavy Equipment Group Co. Ltd., Class A * | | |
Sinopec Oilfield Service Corp., Class A * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Sinopharm Group Co. Ltd., Class H | | |
| | |
Smoore International Holdings Ltd. (b) | | |
Spring Airlines Co. Ltd., Class A * | | |
StarPower Semiconductor Ltd., Class A | | |
Sunny Optical Technology Group Co. Ltd. | | |
| | |
TCL Technology Group Corp., Class A * | | |
TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A | | |
| | |
Tencent Music Entertainment Group, Class A * | | |
Tianqi Lithium Corp., Class A | | |
Tingyi Cayman Islands Holding Corp. | | |
Tongcheng Travel Holdings Ltd. * (b) | | |
Tonghua Dongbao Pharmaceutical Co. Ltd., Class A | | |
Tongwei Co. Ltd., Class A | | |
Topchoice Medical Corp., Class A * | | |
Topsports International Holdings Ltd. (b) | | |
| | |
Tsingtao Brewery Co. Ltd. | | |
Unigroup Guoxin Microelectronics Co. Ltd., Class A * | | |
Uni-President China Holdings Ltd. | | |
Unisplendour Corp. Ltd., Class A * | | |
Vipshop Holdings Ltd., ADR * | | |
Wanhua Chemical Group Co. Ltd., Class A | | |
Want Want China Holdings Ltd. | | |
Weichai Power Co. Ltd., Class H | | |
Western Securities Co. Ltd., Class A | | |
Will Semiconductor Co. Ltd., Class A | | |
Wingtech Technology Co. Ltd., Class A * | | |
Wuliangye Yibin Co. Ltd., Class A | | |
WUS Printed Circuit Kunshan Co. Ltd., Class A | | |
WuXi AppTec Co. Ltd., Class A | | |
WuXi AppTec Co. Ltd., Class H (b) | | |
XCMG Construction Machinery Co. Ltd., Class A | | |
Xiamen Faratronic Co. Ltd., Class A | | |
Xinyi Glass Holdings Ltd. | | |
Xinyi Solar Holdings Ltd. | | |
| | |
Yadea Group Holdings Ltd. (b) | | |
Yankuang Energy Group Co. Ltd., Class A | | |
Yankuang Energy Group Co. Ltd., Class H | | |
| | |
|
|
Yonyou Network Technology Co. Ltd., Class A | | |
YTO Express Group Co. Ltd., Class A | | |
| | |
| | |
Yunnan Energy New Material Co. Ltd., Class A | | |
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A | | |
Zhaojin Mining Industry Co. Ltd., Class H | | |
Zhejiang Century Huatong Group Co. Ltd., Class A * | | |
Zhejiang China Commodities City Group Co. Ltd., Class A | | |
Zhejiang Dahua Technology Co. Ltd., Class A | | |
Zhejiang Huayou Cobalt Co. Ltd., Class A | | |
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A | | |
Zhejiang Zheneng Electric Power Co. Ltd., Class A * | | |
ZhongAn Online P&C Insurance Co. Ltd., Class H * (b) | | |
Zhongsheng Group Holdings Ltd. | | |
Zhuzhou CRRC Times Electric Co. Ltd., Class H | | |
Zijin Mining Group Co. Ltd., Class A | | |
Zijin Mining Group Co. Ltd., Class H | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Bancolombia SA (Preference) | | |
| | |
Grupo Aval Acciones y Valores SA (Preference) | | |
Grupo Energia Bogota SA ESP | | |
| | |
Interconexion Electrica SA ESP | | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Commercial International Bank Egypt SAE | | |
|
Eurobank Ergasias Services and Holdings SA * | | |
Hellenic Telecommunications Organization SA | | |
| | |
Motor Oil Hellas Corinth Refineries SA | | |
| | |
National Bank of Greece SA * | | |
| | |
| | |
|
Kingboard Laminates Holdings Ltd. | | |
Nine Dragons Paper Holdings Ltd. | | |
Orient Overseas International Ltd. | | |
Sino Biopharmaceutical Ltd. | | |
| | |
|
MOL Hungarian Oil & Gas plc | | |
| | |
| | |
| | |
|
| | |
| | |
Adani Energy Solutions Ltd. * | | |
| | |
Adani Green Energy Ltd. * | | |
Adani Ports & Special Economic Zone Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Apollo Hospitals Enterprise Ltd. | | |
| | |
| | |
AU Small Finance Bank Ltd. (b) | | |
| | |
Avenue Supermarts Ltd. * (b) | | |
| | |
| | |
| | |
| | |
| | |
|
|
Bajaj Holdings & Investment Ltd. | | |
Balkrishna Industries Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Bharat Petroleum Corp. Ltd. | | |
| | |
| | |
| | |
Britannia Industries Ltd. | | |
| | |
Cholamandalam Investment and Finance Co. Ltd. | | |
| | |
| | |
Colgate-Palmolive India Ltd. | | |
Container Corp. of India Ltd. | | |
| | |
| | |
| | |
Dr Reddy's Laboratories Ltd. | | |
| | |
Embassy Office Parks, REIT | | |
FSN E-Commerce Ventures Ltd. * | | |
| | |
Godrej Consumer Products Ltd. * | | |
| | |
| | |
| | |
| | |
HDFC Asset Management Co. Ltd. (b) | | |
| | |
HDFC Life Insurance Co. Ltd. (b) | | |
| | |
| | |
Hindustan Aeronautics Ltd. (b) | | |
Hindustan Petroleum Corp. Ltd. * | | |
| | |
| | |
ICICI Lombard General Insurance Co. Ltd. (b) | | |
ICICI Prudential Life Insurance Co. Ltd. (b) | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Indian Railway Catering & Tourism Corp. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
InterGlobe Aviation Ltd. * (b) | | |
| | |
Jindal Steel & Power Ltd. | | |
| | |
| | |
| | |
| | |
L&T Technology Services Ltd. (b) | | |
| | |
| | |
| | |
Macrotech Developers Ltd. (b) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
One 97 Communications Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
Procter & Gamble Hygiene & Health Care Ltd. | | |
| | |
| | |
| | |
Samvardhana Motherson International Ltd. | | |
SBI Cards & Payment Services Ltd. | | |
SBI Life Insurance Co. Ltd. (b) | | |
| | |
| | |
|
|
| | |
| | |
Sona Blw Precision Forgings Ltd. (b) | | |
| | |
Star Health & Allied Insurance Co. Ltd. * | | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
| | |
Tata Consultancy Services Ltd. | | |
Tata Consumer Products Ltd. | | |
| | |
| | |
Tata Motors Ltd., Class A | | |
Tata Power Co. Ltd. (The) | | |
| | |
| | |
| | |
Torrent Pharmaceuticals Ltd. | | |
Tube Investments of India Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Adaro Energy Indonesia Tbk. PT | | |
Adaro Minerals Indonesia Tbk. PT * | | |
Allo Bank Indonesia Tbk. PT * | | |
| | |
Astra International Tbk. PT | | |
| | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Negara Indonesia Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
Capital Financial Indonesia Tbk. PT * | | |
Charoen Pokphand Indonesia Tbk. PT * | | |
Dayamitra Telekomunikasi PT | | |
Elang Mahkota Teknologi Tbk. PT | | |
GoTo Gojek Tokopedia Tbk. PT * | | |
| | |
Indah Kiat Pulp & Paper Tbk. PT | | |
Indocement Tunggal Prakarsa Tbk. PT | | |
Indofood CBP Sukses Makmur Tbk. PT | | |
Indofood Sukses Makmur Tbk. PT | | |
| | |
Merdeka Copper Gold Tbk. PT * | | |
Mitra Keluarga Karyasehat Tbk. PT (b) | | |
Sarana Menara Nusantara Tbk. PT | | |
Semen Indonesia Persero Tbk. PT | | |
Sumber Alfaria Trijaya Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT | | |
Transcoal Pacific Tbk. PT | | |
Trimegah Bangun Persada Tbk. PT | | |
Unilever Indonesia Tbk. PT | | |
| | |
| | |
|
Agility Public Warehousing Co. KSC * | | |
| | |
| | |
Kuwait Finance House KSCP | | |
| | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
HAP Seng Consolidated Bhd. | | |
| | |
| | |
| | |
| | |
| | |
Malaysia Airports Holdings Bhd. | | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
| | |
| | |
| | |
Press Metal Aluminium Holdings Bhd. | | |
| | |
| | |
| | |
Sime Darby Plantation Bhd. | | |
| | |
| | |
| | |
| | |
|
Arca Continental SAB de CV | | |
| | |
Coca-Cola Femsa SAB de CV | | |
Fibra Uno Administracion SA de CV, REIT | | |
Fomento Economico Mexicano SAB de CV | | |
| | |
Grupo Aeroportuario del Pacifico SAB de CV, Class B | | |
Grupo Aeroportuario del Sureste SAB de CV, Class B | | |
| | |
| | |
| | |
Grupo Financiero Banorte SAB de CV, Class O | | |
Grupo Financiero Inbursa SAB de CV, Class O * | | |
| | |
Industrias CH SAB de CV * | | |
Industrias Penoles SAB de CV * | | |
Kimberly-Clark de Mexico SAB de CV, Class A | | |
Operadora De Sites Mexicanos SAB de CV | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Orbia Advance Corp. SAB de CV | | |
Promotora y Operadora de Infraestructura SAB de CV | | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
| | |
Enel Distribucion Peru SAA | | |
| | |
Intercorp Financial Services, Inc. | | |
| | |
|
Aboitiz Equity Ventures, Inc. | | |
| | |
| | |
| | |
Bank of the Philippine Islands | | |
| | |
| | |
| | |
GT Capital Holdings, Inc. | | |
International Container Terminal Services, Inc. | | |
| | |
| | |
| | |
Metropolitan Bank & Trust Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Commercial Bank PSQC (The) | | |
| | |
| | |
| | |
Mesaieed Petrochemical Holding Co. | | |
| | |
Qatar Electricity & Water Co. QSC | | |
| | |
Qatar Gas Transport Co. Ltd. | | |
Qatar International Islamic Bank QSC | | |
| | |
|
|
| | |
| | |
| | |
|
| | |
Advanced Petrochemical Co. | | |
| | |
| | |
| | |
Arabian Internet & Communications Services Co. | | |
| | |
| | |
Bupa Arabia for Cooperative Insurance Co. | | |
Dr Sulaiman Al Habib Medical Services Group Co. | | |
| | |
| | |
| | |
Mouwasat Medical Services Co. | | |
| | |
| | |
| | |
Sahara International Petrochemical Co. | | |
Saudi Arabian Mining Co. * | | |
Saudi Arabian Oil Co. (b) | | |
Saudi Aramco Base Oil Co. | | |
| | |
Saudi Basic Industries Corp. | | |
| | |
Saudi Industrial Investment Group | | |
Saudi Investment Bank (The) | | |
Saudi Kayan Petrochemical Co. * | | |
Saudi National Bank (The) | | |
Saudi Tadawul Group Holding Co. | | |
| | |
| | |
Yanbu National Petrochemical Co. | | |
| | |
|
| | |
African Rainbow Minerals Ltd. | | |
Anglo American Platinum Ltd. | | |
Aspen Pharmacare Holdings Ltd. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
Capitec Bank Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Growthpoint Properties Ltd., REIT | | |
Impala Platinum Holdings Ltd. | | |
| | |
Life Healthcare Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Northam Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
BNK Financial Group, Inc. | | |
Celltrion Healthcare Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Doosan Enerbility Co. Ltd. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
Hana Financial Group, Inc. | | |
| | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
| | |
| | |
Hanwha Aerospace Co. Ltd. | | |
| | |
| | |
| | |
| | |
HD Hyundai Heavy Industries Co. Ltd. * | | |
HD Korea Shipbuilding & Offshore Engineering Co. Ltd. * | | |
| | |
| | |
| | |
| | |
Hyundai Engineering & Construction Co. Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
Hyundai Motor Co. (Preference) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Korea Aerospace Industries Ltd. | | |
Korea Electric Power Corp. * | | |
Korea Investment Holdings Co. Ltd. | | |
| | |
Korean Air Lines Co. Ltd. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
Kumho Petrochemical Co. Ltd. | | |
| | |
| | |
LG Chem Ltd. (Preference) | | |
| | |
| | |
| | |
LG Energy Solution Ltd. * | | |
| | |
| | |
| | |
| | |
Lotte Energy Materials Corp. | | |
Meritz Financial Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Posco International Corp. | | |
| | |
Samsung Biologics Co. Ltd. * (b) | | |
| | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Electronics Co. Ltd. (Preference) | | |
Samsung Engineering Co. Ltd. * | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Heavy Industries Co. Ltd. * | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
| | |
Samsung Securities Co. Ltd. | | |
Shinhan Financial Group Co. Ltd. | | |
SK Biopharmaceuticals Co. Ltd. * | | |
| | |
| | |
SK IE Technology Co. Ltd. * (b) | | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Woori Financial Group, Inc. | | |
| | |
| | |
|
| | |
| | |
Advanced Energy Solution Holding Co. Ltd. | | |
| | |
ASE Technology Holding Co. Ltd. | | |
| | |
| | |
| | |
Catcher Technology Co. Ltd. | | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
Chang Hwa Commercial Bank Ltd. | | |
Cheng Shin Rubber Industry Co. Ltd. | | |
Chicony Electronics Co. Ltd. | | |
| | |
China Development Financial Holding Corp. * | | |
| | |
Chunghwa Telecom Co. Ltd. | | |
| | |
CTBC Financial Holding Co. Ltd. | | |
| | |
| | |
E.Sun Financial Holding Co. Ltd. | | |
| | |
| | |
| | |
Evergreen Marine Corp. Taiwan Ltd. | | |
Far Eastern New Century Corp. | | |
Far EasTone Telecommunications Co. Ltd. | | |
Feng TAY Enterprise Co. Ltd. | | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
Formosa Petrochemical Corp. | | |
| | |
Foxconn Technology Co. Ltd. | | |
Fubon Financial Holding Co. Ltd. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Giant Manufacturing Co. Ltd. | | |
| | |
| | |
Highwealth Construction Corp. | | |
| | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
Hua Nan Financial Holdings Co. Ltd. | | |
| | |
| | |
Largan Precision Co. Ltd. | | |
| | |
Macronix International Co. Ltd. | | |
| | |
Mega Financial Holding Co. Ltd. | | |
| | |
Micro-Star International Co. Ltd. | | |
| | |
| | |
Nan Ya Printed Circuit Board Corp. | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
Novatek Microelectronics Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Powerchip Semiconductor Manufacturing Corp. | | |
Powertech Technology, Inc. | | |
President Chain Store Corp. | | |
| | |
Radiant Opto-Electronics Corp. | | |
Realtek Semiconductor Corp. | | |
Ruentex Development Co. Ltd. | | |
| | |
Shanghai Commercial & Savings Bank Ltd. (The) | | |
Shin Kong Financial Holding Co. Ltd. * | | |
Simplo Technology Co. Ltd. | | |
Sino-American Silicon Products, Inc. | | |
SinoPac Financial Holdings Co. Ltd. | | |
Synnex Technology International Corp. | | |
Taishin Financial Holding Co. Ltd. | | |
| | |
|
|
| | |
| | |
Taiwan Cooperative Financial Holding Co. Ltd. | | |
Taiwan High Speed Rail Corp. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
| | |
Teco Electric and Machinery Co. Ltd. | | |
| | |
Unimicron Technology Corp. | | |
Uni-President Enterprises Corp. | | |
United Microelectronics Corp. | | |
Vanguard International Semiconductor Corp. | | |
Voltronic Power Technology Corp. | | |
| | |
| | |
| | |
Winbond Electronics Corp. | | |
| | |
| | |
| | |
| | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co. Ltd. | | |
Zhen Ding Technology Holding Ltd. | | |
| | |
|
Advanced Info Service PCL, NVDR | | |
Airports of Thailand PCL, NVDR * | | |
| | |
| | |
Bangkok Dusit Medical Services PCL, NVDR | | |
Bangkok Expressway & Metro PCL, NVDR | | |
Bank of Ayudhya PCL, NVDR | | |
| | |
| | |
BTS Group Holdings PCL, NVDR | | |
Bumrungrad Hospital PCL, NVDR | | |
| | |
Central Pattana PCL, NVDR | | |
Central Retail Corp. PCL, NVDR | | |
Charoen Pokphand Foods PCL, NVDR | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Delta Electronics Thailand PCL, NVDR | | |
Energy Absolute PCL, NVDR | | |
Gulf Energy Development PCL, NVDR | | |
Home Product Center PCL, NVDR | | |
Indorama Ventures PCL, NVDR | | |
Intouch Holdings PCL, NVDR | | |
JMT Network Services PCL, NVDR | | |
| | |
Krung Thai Bank PCL, NVDR | | |
| | |
Minor International PCL, NVDR | | |
Muangthai Capital PCL, NVDR | | |
| | |
PTT Exploration & Production PCL, NVDR | | |
PTT Global Chemical PCL, NVDR | | |
PTT Oil & Retail Business PCL, NVDR | | |
| | |
| | |
| | |
Siam Cement PCL (The), NVDR | | |
Siam Global House PCL, NVDR | | |
| | |
Thai Life Insurance PCL, NVDR | | |
Thai Union Group PCL, NVDR | | |
TMBThanachart Bank PCL, NVDR | | |
| | |
|
| | |
| | |
Aselsan Elektronik Sanayi ve Ticaret A/S | | |
BIM Birlesik Magazalar A/S | | |
| | |
Enka Insaat ve Sanayi A/S | | |
Eregli Demir ve Celik Fabrikalari TAS * | | |
| | |
Haci Omer Sabanci Holding A/S | | |
| | |
| | |
Petkim Petrokimya Holding A/S * | | |
Sasa Polyester Sanayi A/S * | | |
Tofas Turk Otomobil Fabrikasi A/S | | |
| | |
Turkcell Iletisim Hizmetleri A/S * | | |
Turkiye Garanti Bankasi A/S | | |
| | |
|
|
Turkiye Is Bankasi A/S, Class C | | |
Turkiye Petrol Rafinerileri A/S | | |
Turkiye Sise ve Cam Fabrikalari A/S | | |
Yapi ve Kredi Bankasi A/S | | |
| | |
United Arab Emirates — 3.0% |
Abu Dhabi Commercial Bank PJSC | | |
Abu Dhabi Islamic Bank PJSC | | |
Abu Dhabi National Oil Co. for Distribution PJSC | | |
| | |
| | |
Alpha Dhabi Holding PJSC * | | |
Americana Restaurants International plc | | |
Dubai Electricity & Water Authority PJSC | | |
| | |
| | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
| | |
First Abu Dhabi Bank PJSC | | |
International Holding Co. PJSC * | | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Total Common Stocks
(Cost $515,289,385) | | |
| | |
|
|
Gulf Bank KSCP, expiring 11/12/2023* | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
|
|
Winbond Electronics Corp., expiring 11/3/2023* | | |
| | |
| | |
Short-Term Investments — 0.9% |
Investment Companies — 0.9% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d)(Cost $4,440,195) | | |
Total Investments — 99.9%
(Cost $519,729,580) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| |
| Non-Voting Depositary Receipt |
| Public Joint Stock Company |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Limited liability company |
| Real Estate Investment Trust |
| Limited partnership with share capital |
| Amount rounds to less than 0.1% of net assets. |
| Non-income producing security. | |
| Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
Semiconductors & Semiconductor Equipment | |
Technology Hardware, Storage & Peripherals | |
Oil, Gas & Consumable Fuels | |
Interactive Media & Services | |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
Real Estate Management & Development | |
Consumer Staples Distribution & Retail | |
Wireless Telecommunication Services | |
Diversified Telecommunication Services | |
| |
| |
| |
Independent Power and Renewable Electricity Producers | |
| |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
MSCI Emerging Markets E-Mini Index | | | | | |
| |
| Morgan Stanley Capital International |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
Flutter Entertainment plc * | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Raiffeisen Bank International AG * | | |
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
| | |
|
Ackermans & van Haaren NV | | |
| | |
| | |
| | |
| | |
| | |
Etablissements Franz Colruyt NV | | |
Groupe Bruxelles Lambert NV | | |
| | |
| | |
| | |
| | |
| | |
Warehouses De Pauw CVA, REIT | | |
| | |
|
| | |
|
| | |
|
| | |
| | |
|
|
AP Moller - Maersk A/S, Class A | | |
AP Moller - Maersk A/S, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
| | |
| | |
| | |
Vestas Wind Systems A/S * | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
|
| | |
Bayerische Motoren Werke AG | | |
Bayerische Motoren Werke AG (Preference) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Deutsche Bank AG (Registered) | | |
| | |
Deutsche Lufthansa AG (Registered) * | | |
| | |
Deutsche Telekom AG (Registered) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Henkel AG & Co. KGaA (Preference) | | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs- Gesellschaft AG (Registered) | | |
Porsche Automobil Holding SE (Preference) | | |
| | |
| | |
| | |
Sartorius AG (Preference) | | |
| | |
| | |
Siemens Healthineers AG (a) | | |
| | |
| | |
Telefonica Deutschland Holding AG | | |
Volkswagen AG (Preference) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
| | |
Infrastrutture Wireless Italiane SpA (a) | | |
| | |
| | |
Mediobanca Banca di Credito Finanziario SpA (b) | | |
| | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
UnipolSai Assicurazioni SpA | | |
| | |
| | |
|
|
Hikma Pharmaceuticals plc | | |
|
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
AutoStore Holdings Ltd. * (b) (c) | | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Bank Polska Kasa Opieki SA | | |
| | |
| | |
| | |
| | |
| | |
Powszechna Kasa Oszczednosci Bank Polski SA * | | |
Powszechny Zaklad Ubezpieczen SA | | |
Santander Bank Polska SA * | | |
| | |
|
EDP - Energias de Portugal SA | | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
| | |
|
|
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Industria de Diseno Textil SA (b) | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, Class B * | | |
| | |
H & M Hennes & Mauritz AB, Class B (b) | | |
| | |
| | |
| | |
Industrivarden AB, Class A | | |
Industrivarden AB, Class C (b) | | |
| | |
Investment AB Latour, Class B | | |
| | |
| | |
| | |
L E Lundbergforetagen AB, Class B | | |
| | |
Nibe Industrier AB, Class B | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, Class A | | |
Skandinaviska Enskilda Banken AB, Class C | | |
| | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB SCA, Class A | | |
Svenska Cellulosa AB SCA, Class B | | |
Svenska Handelsbanken AB, Class A | | |
Svenska Handelsbanken AB, Class B (b) | | |
| | |
Swedish Orphan Biovitrum AB * (b) | | |
| | |
Telefonaktiebolaget LM Ericsson, Class A | | |
Telefonaktiebolaget LM Ericsson, Class B | | |
| | |
| | |
| | |
| | |
Volvo Car AB, Class B * (b) | | |
| | |
|
| | |
| | |
Baloise Holding AG (Registered) | | |
Barry Callebaut AG (Registered) | | |
Chocoladefabriken Lindt & Spruengli AG | | |
Chocoladefabriken Lindt & Spruengli AG (Registered) | | |
Cie Financiere Richemont SA (Registered) | | |
| | |
EMS-Chemie Holding AG (Registered) | | |
| | |
| | |
| | |
Kuehne + Nagel International AG (Registered) | | |
Lonza Group AG (Registered) | | |
| | |
| | |
|
|
Partners Group Holding AG | | |
| | |
Schindler Holding AG (Registered) | | |
| | |
| | |
Sonova Holding AG (Registered) | | |
Straumann Holding AG (Registered) | | |
| | |
Swatch Group AG (The) (Registered) | | |
Swiss Life Holding AG (Registered) | | |
| | |
UBS Group AG (Registered) | | |
Zurich Insurance Group AG | | |
| | |
United Arab Emirates — 0.0% ^ |
| | |
|
| | |
| | |
| | |
| | |
Associated British Foods plc | | |
| | |
Auto Trader Group plc (a) | | |
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
Berkeley Group Holdings plc | | |
| | |
British American Tobacco plc | | |
British Land Co. plc (The), REIT | | |
| | |
| | |
| | |
| | |
| | |
Coca-Cola Europacific Partners plc | | |
| | |
| | |
| | |
| | |
Dechra Pharmaceuticals plc | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United Kingdom — continued |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
Intermediate Capital Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group plc, REIT | | |
Legal & General Group plc | | |
| | |
London Stock Exchange Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings plc | | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
Rolls-Royce Holdings plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
United Kingdom — continued |
Spirax-Sarco Engineering plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $5,908,663,965) | | |
Short-Term Investments — 0.9% |
Investment of Cash Collateral from Securities Loaned — 0.9% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (d) (e) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (d) (e) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $43,392,389) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Total Investments — 99.7%
(Cost $5,952,056,354) | | |
Other Assets Less Liabilities — 0.3% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Certificaten Van Aandelen (Dutch Certificate) |
| |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Real Estate Investment Trust |
| Limited partnership with share capital |
| |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $41,286,855. | |
| Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
Oil, Gas & Consumable Fuels | |
| |
Textiles, Apparel & Luxury Goods | |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
| |
| |
| |
| |
| |
Diversified Telecommunication Services | |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
| |
Construction & Engineering | |
Consumer Staples Distribution & Retail | |
Others (each less than 1.0%) | |
| |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Europe ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| |
| |
| Financial Times and the London Stock Exchange |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Bendigo & Adelaide Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
Flutter Entertainment plc * | | |
Fortescue Metals Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
Northern Star Resources Ltd. | | |
| | |
| | |
Pilbara Minerals Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Seven Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
Washington H Soul Pattinson & Co. Ltd. | | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Raiffeisen Bank International AG * | | |
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
| | |
|
Ackermans & van Haaren NV | | |
| | |
| | |
| | |
| | |
| | |
Etablissements Franz Colruyt NV | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Groupe Bruxelles Lambert NV | | |
| | |
| | |
| | |
| | |
| | |
Warehouses De Pauw CVA, REIT | | |
| | |
|
| | |
|
| | |
|
Budweiser Brewing Co. APAC Ltd. (b) | | |
| | |
| | |
Wharf Holdings Ltd. (The) | | |
Wilmar International Ltd. | | |
Wuxi Biologics Cayman, Inc. * (b) | | |
| | |
|
AP Moller - Maersk A/S, Class A | | |
AP Moller - Maersk A/S, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
| | |
| | |
| | |
Vestas Wind Systems A/S * | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Cie Generale des Etablissements Michelin SCA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Bayerische Motoren Werke AG | | |
Bayerische Motoren Werke AG (Preference) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Deutsche Bank AG (Registered) | | |
| | |
Deutsche Lufthansa AG (Registered) * | | |
| | |
Deutsche Telekom AG (Registered) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Henkel AG & Co. KGaA (Preference) | | |
| | |
| | |
| | |
| | |
Muenchener Rueckversicherungs- Gesellschaft AG (Registered) | | |
Porsche Automobil Holding SE (Preference) | | |
| | |
| | |
| | |
Sartorius AG (Preference) | | |
| | |
| | |
Siemens Healthineers AG (b) | | |
| | |
| | |
Telefonica Deutschland Holding AG | | |
Volkswagen AG (Preference) | | |
| | |
| | |
| | |
|
| | |
| | |
CK Infrastructure Holdings Ltd. | | |
| | |
DFI Retail Group Holdings Ltd. | | |
Hang Lung Properties Ltd. | | |
| | |
Henderson Land Development Co. Ltd. | | |
HK Electric Investments & HK Electric Investments Ltd. (b) | | |
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hong Kong Exchanges & Clearing Ltd. | | |
Jardine Matheson Holdings Ltd. | | |
| | |
| | |
New World Development Co. Ltd. | | |
Power Assets Holdings Ltd. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., Class A | | |
Swire Pacific Ltd., Class B | | |
| | |
Techtronic Industries Co. Ltd. | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Bezeq The Israeli Telecommunication Corp. Ltd. | | |
| | |
| | |
Israel Discount Bank Ltd., Class A | | |
Mizrahi Tefahot Bank Ltd. | | |
| | |
Teva Pharmaceutical Industries Ltd. * | | |
| | |
|
| | |
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
FinecoBank Banca Fineco SpA | | |
| | |
Infrastrutture Wireless Italiane SpA (b) | | |
| | |
| | |
|
|
| | |
Mediobanca Banca di Credito Finanziario SpA (a) | | |
| | |
| | |
| | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
| | |
| | |
Terna - Rete Elettrica Nazionale | | |
| | |
UnipolSai Assicurazioni SpA | | |
| | |
|
| | |
| | |
Advance Residence Investment Corp., REIT | | |
| | |
| | |
| | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
| | |
| | |
Bandai Namco Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Central Japan Railway Co. | | |
| | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
Concordia Financial Group Ltd. | | |
Cosmos Pharmaceutical Corp. | | |
| | |
Dai Nippon Printing Co. Ltd. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
Dai-ichi Life Holdings, Inc. | | |
| | |
| | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
Daiwa House REIT Investment Corp., REIT | | |
Daiwa Securities Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fukuoka Financial Group, Inc. | | |
| | |
GMO Payment Gateway, Inc. | | |
Hakuhodo DY Holdings, Inc. | | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
| | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
Japan Airport Terminal Co. Ltd. | | |
Japan Exchange Group, Inc. | | |
Japan Metropolitan Fund Invest, REIT | | |
| | |
|
|
| | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
Japan Real Estate Investment Corp., REIT | | |
| | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. (The) | | |
| | |
| | |
Kawasaki Heavy Industries Ltd. | | |
| | |
| | |
Keisei Electric Railway Co. Ltd. | | |
| | |
| | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
Koei Tecmo Holdings Co. Ltd. | | |
Koito Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
Kyoto Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
McDonald's Holdings Co. Japan Ltd. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Electric Corp. | | |
Mitsubishi Estate Co. Ltd. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi Heavy Industries Ltd. | | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
| | |
| | |
Mizuho Financial Group, Inc. | | |
| | |
MS&AD Insurance Group Holdings, Inc. | | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nippon Building Fund, Inc., REIT | | |
Nippon Express Holdings, Inc. | | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Prologis REIT, Inc., REIT | | |
Nippon Sanso Holdings Corp. | | |
| | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc., REIT | | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
Open House Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pan Pacific International Holdings Corp. | | |
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. * | | |
| | |
| | |
| | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Square Enix Holdings Co. Ltd. | | |
Stanley Electric Co. Ltd. | | |
| | |
| | |
Sumitomo Chemical Co. Ltd. | | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
| | |
| | |
Taisho Pharmaceutical Holdings Co. Ltd. | | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Tokio Marine Holdings, Inc. | | |
| | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Urban Investment Corp., REIT | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Hikma Pharmaceuticals plc | | |
|
| | |
| | |
| | |
|
Galaxy Entertainment Group Ltd. | | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Auckland International Airport Ltd. | | |
| | |
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
| | |
| | |
|
| | |
| | |
AutoStore Holdings Ltd. * (c) | | |
| | |
| | |
Gjensidige Forsikring ASA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Bank Polska Kasa Opieki SA | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Powszechna Kasa Oszczednosci Bank Polski SA * | | |
Powszechny Zaklad Ubezpieczen SA | | |
Santander Bank Polska SA * | | |
| | |
|
EDP - Energias de Portugal SA | | |
| | |
| | |
| | |
|
| | |
|
CapitaLand Ascendas, REIT | | |
CapitaLand Integrated Commercial Trust, REIT | | |
CapitaLand Investment Ltd. | | |
| | |
| | |
| | |
Great Eastern Holdings Ltd. | | |
Jardine Cycle & Carriage Ltd. | | |
| | |
| | |
Mapletree Pan Asia Commercial Trust, REIT | | |
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
Singapore Technologies Engineering Ltd. | | |
Singapore Telecommunications Ltd. | | |
| | |
United Overseas Bank Ltd. | | |
| | |
| | |
| | |
|
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
|
| | |
ACS Actividades de Construccion y Servicios SA | | |
| | |
| | |
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
| | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Industria de Diseno Textil SA (a) | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fastighets AB Balder, Class B * | | |
| | |
H & M Hennes & Mauritz AB, Class B (a) | | |
| | |
| | |
| | |
| | |
|
|
Industrivarden AB, Class A | | |
Industrivarden AB, Class C (a) | | |
| | |
Investment AB Latour, Class B | | |
| | |
| | |
| | |
L E Lundbergforetagen AB, Class B | | |
| | |
Nibe Industrier AB, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
Skandinaviska Enskilda Banken AB, Class A | | |
Skandinaviska Enskilda Banken AB, Class C | | |
| | |
| | |
| | |
| | |
| | |
Svenska Cellulosa AB SCA, Class A | | |
Svenska Cellulosa AB SCA, Class B | | |
Svenska Handelsbanken AB, Class A | | |
Svenska Handelsbanken AB, Class B (a) | | |
| | |
Swedish Orphan Biovitrum AB * (a) | | |
| | |
Telefonaktiebolaget LM Ericsson, Class A | | |
Telefonaktiebolaget LM Ericsson, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Baloise Holding AG (Registered) | | |
Barry Callebaut AG (Registered) | | |
Chocoladefabriken Lindt & Spruengli AG | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Chocoladefabriken Lindt & Spruengli AG (Registered) | | |
Cie Financiere Richemont SA (Registered) | | |
| | |
EMS-Chemie Holding AG (Registered) | | |
| | |
| | |
| | |
Kuehne + Nagel International AG (Registered) | | |
Lonza Group AG (Registered) | | |
| | |
Partners Group Holding AG | | |
| | |
Schindler Holding AG (Registered) | | |
| | |
| | |
Sonova Holding AG (Registered) | | |
Straumann Holding AG (Registered) | | |
| | |
Swatch Group AG (The) (Registered) | | |
Swiss Life Holding AG (Registered) | | |
| | |
UBS Group AG (Registered) | | |
Zurich Insurance Group AG | | |
| | |
United Arab Emirates — 0.0% ^ |
| | |
|
| | |
| | |
| | |
| | |
Associated British Foods plc | | |
| | |
Auto Trader Group plc (b) | | |
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
Berkeley Group Holdings plc | | |
| | |
British American Tobacco plc | | |
British Land Co. plc (The), REIT | | |
| | |
|
United Kingdom — continued |
| | |
| | |
| | |
| | |
CK Hutchison Holdings Ltd. | | |
| | |
Coca-Cola Europacific Partners plc | | |
| | |
| | |
| | |
| | |
Dechra Pharmaceuticals plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
Intermediate Capital Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Land Securities Group plc, REIT | | |
Legal & General Group plc | | |
| | |
London Stock Exchange Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
United Kingdom — continued |
Phoenix Group Holdings plc | | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
Rolls-Royce Holdings plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Spirax-Sarco Engineering plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
United Utilities Group plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
James Hardie Industries plc, CHDI * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
United States — continued |
| | |
| | |
| | |
Total Common Stocks
(Cost $3,537,443,851) | | |
Short-Term Investments — 1.1% |
Investment Companies — 0.7% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (e) (f)(Cost $26,299,048) | | |
Investment of Cash Collateral from Securities Loaned — 0.4% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (e) (f) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (e) (f) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $13,281,651) | | |
Total Short-Term Investments
(Cost $39,580,699) | | |
Total Investments — 99.9%
(Cost $3,577,024,550) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Clearing House Electronic Subregister System (CHESS) Depository Interest |
| Certificaten Van Aandelen (Dutch Certificate) |
| |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Real Estate Investment Trust |
| Limited partnership with share capital |
| |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $12,645,686. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. | |
| | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
| |
Textiles, Apparel & Luxury Goods | |
| |
Trading Companies & Distributors | |
Health Care Equipment & Supplies | |
| |
| |
Diversified Telecommunication Services | |
| |
| |
| |
Hotels, Restaurants & Leisure | |
| |
| |
Consumer Staples Distribution & Retail | |
Electronic Equipment, Instruments & Components | |
| |
Real Estate Management & Development | |
| |
| |
Wireless Telecommunication Services | |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
| |
| Europe, Australasia and Far East |
| Morgan Stanley Capital International |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Japan ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Air Freight & Logistics — 0.4% |
Nippon Express Holdings, Inc. | | |
| | |
| | |
| | |
Automobile Components — 2.1% |
| | |
| | |
| | |
Koito Manufacturing Co. Ltd. | | |
| | |
Stanley Electric Co. Ltd. | | |
Sumitomo Electric Industries Ltd. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Concordia Financial Group Ltd. | | |
Fukuoka Financial Group, Inc. | | |
| | |
Kyoto Financial Group, Inc. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
Mizuho Financial Group, Inc. | | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Mitsui Trust Holdings, Inc. | | |
| | |
|
Asahi Group Holdings Ltd. | | |
| | |
Suntory Beverage & Food Ltd. | | |
| | |
| | |
|
|
Pan Pacific International Holdings Corp. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
Daiwa Securities Group, Inc. | | |
Japan Exchange Group, Inc. | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
Mitsubishi Gas Chemical Co., Inc. | | |
| | |
Nippon Paint Holdings Co. Ltd. | | |
Nippon Sanso Holdings Corp. | | |
| | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
Sumitomo Chemical Co. Ltd. | | |
| | |
| | |
| | |
Commercial Services & Supplies — 0.8% |
Dai Nippon Printing Co. Ltd. | | |
| | |
| | |
| | |
Construction & Engineering — 0.7% |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Consumer Staples Distribution & Retail — 1.7% |
| | |
Cosmos Pharmaceutical Corp. | | |
| | |
| | |
| | |
Seven & i Holdings Co. Ltd. | | |
| | |
| | |
|
Daiwa House REIT Investment Corp. | | |
Nomura Real Estate Master Fund, Inc. | | |
United Urban Investment Corp. | | |
| | |
Diversified Telecommunication Services — 0.9% |
Nippon Telegraph & Telephone Corp. | | |
Electric Utilities — 0.6% |
Chubu Electric Power Co., Inc. | | |
Kansai Electric Power Co., Inc. (The) | | |
Tokyo Electric Power Co. Holdings, Inc. * | | |
| | |
Electrical Equipment — 1.3% |
| | |
Mitsubishi Electric Corp. | | |
| | |
| | |
Electronic Equipment, Instruments & Components — 4.7% |
| | |
| | |
| | |
| | |
| | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Koei Tecmo Holdings Co. Ltd. | | |
| | |
| | |
| | |
Square Enix Holdings Co. Ltd. | | |
| | |
| | |
Financial Services — 0.8% |
GMO Payment Gateway, Inc. | | |
Mitsubishi HC Capital, Inc. | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Ground Transportation — 2.7% |
Central Japan Railway Co. | | |
| | |
Hankyu Hanshin Holdings, Inc. | | |
| | |
Keisei Electric Railway Co. Ltd. | | |
Kintetsu Group Holdings Co. Ltd. | | |
| | |
| | |
Odakyu Electric Railway Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Japan ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Health Care Equipment & Supplies — 2.2% |
Asahi Intecc Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
Health Care Providers & Services — 0.1% |
| | |
Health Care Technology — 0.2% |
| | |
Hotels, Restaurants & Leisure — 1.1% |
McDonald's Holdings Co. Japan Ltd. | | |
| | |
| | |
Household Durables — 4.3% |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
Open House Group Co. Ltd. | | |
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Household Products — 0.5% |
| | |
| | |
| | |
Industrial Conglomerates — 1.8% |
| | |
| | |
| | |
| | |
|
| | |
Nippon Prologis REIT, Inc. | | |
| | |
|
Dai-ichi Life Holdings, Inc. | | |
| | |
|
|
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
| | |
| | |
Tokio Marine Holdings, Inc. | | |
| | |
Interactive Media & Services — 0.2% |
| | |
|
| | |
| | |
Nomura Research Institute Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Bandai Namco Holdings, Inc. | | |
Sega Sammy Holdings, Inc. | | |
| | |
| | |
| | |
|
| | |
| | |
Hitachi Construction Machinery Co. Ltd. | | |
| | |
Kawasaki Heavy Industries Ltd. | | |
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
| | |
| | |
Mitsubishi Heavy Industries Ltd. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Marine Transportation — 0.6% |
| | |
| | |
| | |
|
| | |
| | |
Hakuhodo DY Holdings, Inc. | | |
| | |
|
| | |
| | |
Sumitomo Metal Mining Co. Ltd. | | |
| | |
|
Japan Real Estate Investment Corp. | | |
Nippon Building Fund, Inc. | | |
| | |
| | |
Oil, Gas & Consumable Fuels — 0.8% |
| | |
| | |
| | |
| | |
Paper & Forest Products — 0.1% |
| | |
Passenger Airlines — 0.2% |
| | |
| | |
| | |
Personal Care Products — 0.9% |
| | |
Kobayashi Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
|
|
| | |
Chugai Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
Taisho Pharmaceutical Holdings Co. Ltd. | | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
Professional Services — 1.4% |
| | |
Recruit Holdings Co. Ltd. | | |
| | |
Real Estate Management & Development — 2.3% |
Daito Trust Construction Co. Ltd. | | |
Daiwa House Industry Co. Ltd. | | |
| | |
Mitsubishi Estate Co. Ltd. | | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
Tokyu Fudosan Holdings Corp. | | |
| | |
|
Advance Residence Investment Corp. | | |
|
Japan Metropolitan Fund Invest | | |
Semiconductors & Semiconductor Equipment — 3.8% |
| | |
| | |
| | |
Renesas Electronics Corp. * | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders Japan ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 1.6% |
| | |
| | |
| | |
| | |
| | |
| | |
Textiles, Apparel & Luxury Goods — 0.2% |
| | |
|
| | |
Trading Companies & Distributors — 6.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Transportation Infrastructure — 0.1% |
Japan Airport Terminal Co. Ltd. | | |
| | |
|
Wireless Telecommunication Services — 3.2% |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $9,352,402,744) | | |
Short-Term Investments — 0.1% |
Investment of Cash Collateral from Securities Loaned — 0.1% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (b) (c) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $8,669,611) | | |
Total Investments — 98.6%
(Cost $9,361,072,355) | | |
Other Assets Less Liabilities — 1.4% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $8,163,766. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 1.6% |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
L3Harris Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Air Freight & Logistics — 0.5% |
CH Robinson Worldwide, Inc. | | |
Expeditors International of Washington, Inc. | | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
Automobile Components — 0.1% |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Rivian Automotive, Inc., Class A * (a) | | |
| | |
| | |
|
| | |
| | |
Citizens Financial Group, Inc. | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
| | |
PNC Financial Services Group, Inc. (The) | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
|
Brown-Forman Corp., Class A (a) | | |
Brown-Forman Corp., Class B | | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
|
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
| | |
| | |
| | |
| | |
Neurocrine Biosciences, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
|
| | |
Coupang, Inc. (South Korea) * | | |
| | |
| | |
MercadoLibre, Inc. (Brazil) * | | |
| | |
|
| | |
| | |
Fortune Brands Innovations, Inc. | | |
Johnson Controls International plc | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Building Products — continued |
Lennox International, Inc. | | |
| | |
| | |
| | |
| | |
|
Ameriprise Financial, Inc. | | |
Bank of New York Mellon Corp. (The) | | |
| | |
| | |
Carlyle Group, Inc. (The) | | |
Charles Schwab Corp. (The) | | |
| | |
Coinbase Global, Inc., Class A * (a) | | |
FactSet Research Systems, Inc. | | |
| | |
Goldman Sachs Group, Inc. (The) | | |
Intercontinental Exchange, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
T. Rowe Price Group, Inc. | | |
| | |
|
Air Products and Chemicals, Inc. | | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
International Flavors & Fragrances, Inc. | | |
| | |
LyondellBasell Industries NV, Class A | | |
| | |
| | |
Sherwin-Williams Co. (The) | | |
| | |
| | |
Commercial Services & Supplies — 0.5% |
| | |
| | |
| | |
| | |
| | |
| | |
Communications Equipment — 0.9% |
| | |
| | |
| | |
| | |
| | |
| | |
Construction & Engineering — 0.1% |
| | |
Construction Materials — 0.1% |
Martin Marietta Materials, Inc. | | |
| | |
| | |
|
| | |
| | |
Capital One Financial Corp. | | |
Discover Financial Services | | |
| | |
| | |
Consumer Staples Distribution & Retail — 1.8% |
Albertsons Cos., Inc., Class A | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Consumer Staples Distribution & Retail — continued |
| | |
| | |
Walgreens Boots Alliance, Inc. | | |
| | |
| | |
Containers & Packaging — 0.2% |
| | |
| | |
| | |
| | |
| | |
Packaging Corp. of America | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Diversified REITs — 0.0% ^ |
| | |
Diversified Telecommunication Services — 0.7% |
| | |
Verizon Communications, Inc. | | |
| | |
Electric Utilities — 1.6% |
| | |
American Electric Power Co., Inc. | | |
| | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
| | |
|
Electric Utilities — continued |
| | |
| | |
| | |
Electrical Equipment — 0.6% |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Electronic Equipment, Instruments & Components — 0.6% |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
Teledyne Technologies, Inc. * | | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
Energy Equipment & Services — 0.4% |
| | |
| | |
| | |
| | |
|
| | |
Liberty Media Corp-Liberty Formula One, Class A * | | |
Liberty Media Corp-Liberty Formula One, Class C * | | |
Live Nation Entertainment, Inc. * | | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
Financial Services — 4.3% |
Apollo Global Management, Inc. | | |
Berkshire Hathaway, Inc., Class B * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Financial Services — continued |
| | |
Corebridge Financial, Inc. | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
FleetCor Technologies, Inc. * | | |
| | |
Jack Henry & Associates, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
Archer-Daniels-Midland Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
McCormick & Co., Inc. (Non-Voting) | | |
Mondelez International, Inc., Class A | | |
Tyson Foods, Inc., Class A | | |
| | |
|
| | |
Ground Transportation — 1.0% |
| | |
JB Hunt Transport Services, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
Uber Technologies, Inc. * | | |
| | |
| | |
Health Care Equipment & Supplies — 2.4% |
| | |
| | |
Baxter International, Inc. | | |
| | |
|
Health Care Equipment & Supplies — continued |
| | |
Boston Scientific Corp. * | | |
| | |
| | |
| | |
Edwards Lifesciences Corp. * | | |
GE HealthCare Technologies, Inc. | | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Zimmer Biomet Holdings, Inc. | | |
| | |
Health Care Providers & Services — 3.0% |
agilon health, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Laboratory Corp. of America Holdings | | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
|
Healthpeak Properties, Inc. | | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Health Care Technology — 0.1% |
Veeva Systems, Inc., Class A * | | |
Hotel & Resort REITs — 0.0% ^ |
Host Hotels & Resorts, Inc. | | |
Hotels, Restaurants & Leisure — 2.1% |
| | |
| | |
| | |
Caesars Entertainment, Inc. * | | |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
DoorDash, Inc., Class A * | | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
| | |
MGM Resorts International | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Household Durables — 0.3% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Household Products — 1.3% |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
Procter & Gamble Co. (The) | | |
| | |
| | |
|
Independent Power and Renewable Electricity Producers — 0.1% |
| | |
| | |
| | |
Industrial Conglomerates — 0.8% |
| | |
| | |
Honeywell International, Inc. | | |
| | |
|
| | |
|
| | |
| | |
American Financial Group, Inc. | | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Cincinnati Financial Corp. | | |
| | |
Fidelity National Financial, Inc. | | |
| | |
Hartford Financial Services Group, Inc. (The) | | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
Reinsurance Group of America, Inc. | | |
Travelers Cos., Inc. (The) | | |
| | |
| | |
| | |
Interactive Media & Services — 5.6% |
Alphabet, Inc., Class A * | | |
Alphabet, Inc., Class C * | | |
| | |
Meta Platforms, Inc., Class A * | | |
Pinterest, Inc., Class A * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Interactive Media & Services — continued |
Snap, Inc., Class A * (a) | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
| | |
Akamai Technologies, Inc. * | | |
Cloudflare, Inc., Class A * (a) | | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Leisure Products — 0.0% ^ |
| | |
Life Sciences Tools & Services — 1.3% |
Agilent Technologies, Inc. | | |
| | |
Bio-Rad Laboratories, Inc., Class A * | | |
| | |
Charles River Laboratories International, Inc. * | | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Stanley Black & Decker, Inc. (a) | | |
Westinghouse Air Brake Technologies Corp. | | |
| | |
| | |
|
Charter Communications, Inc., Class A * (a) | | |
| | |
| | |
| | |
Interpublic Group of Cos., Inc. (The) | | |
Liberty Broadband Corp., Class A * | | |
Liberty Broadband Corp., Class C * | | |
Liberty Media Corp-Liberty SiriusXM * | | |
Liberty Media Corp-Liberty SiriusXM, Class A * | | |
| | |
| | |
| | |
Paramount Global, Class A (a) | | |
Paramount Global, Class B (a) | | |
Sirius XM Holdings, Inc. (a) | | |
Trade Desk, Inc. (The), Class A * | | |
| | |
|
| | |
| | |
| | |
Southern Copper Corp. (Mexico) | | |
| | |
| | |
Mortgage Real Estate Investment Trusts (REITs) — 0.0% ^ |
Annaly Capital Management, Inc. | | |
|
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Multi-Utilities — continued |
| | |
Consolidated Edison, Inc. | | |
| | |
| | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
|
Alexandria Real Estate Equities, Inc. | | |
| | |
| | |
Oil, Gas & Consumable Fuels — 4.1% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
Williams Cos., Inc. (The) | | |
| | |
Passenger Airlines — 0.1% |
| | |
| | |
United Airlines Holdings, Inc. * | | |
| | |
| | |
|
Personal Care Products — 0.1% |
Estee Lauder Cos., Inc. (The), Class A | | |
|
| | |
| | |
| | |
Jazz Pharmaceuticals plc * | | |
| | |
| | |
| | |
Royalty Pharma plc, Class A | | |
| | |
| | |
| | |
Professional Services — 0.8% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
Broadridge Financial Solutions, Inc. | | |
Ceridian HCM Holding, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
| | |
Real Estate Management & Development — 0.2% |
CBRE Group, Inc., Class A * | | |
| | |
Zillow Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
AvalonBay Communities, Inc. | | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
| | |
Mid-America Apartment Communities, Inc. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Residential REITs — continued |
| | |
| | |
| | |
|
Federal Realty Investment Trust | | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
| | |
Semiconductors & Semiconductor Equipment — 7.0% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
Enphase Energy, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
NXP Semiconductors NV (China) | | |
| | |
| | |
| | |
| | |
SolarEdge Technologies, Inc. * (a) | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
Bill Holdings, Inc. * (a) | | |
| | |
|
|
Cadence Design Systems, Inc. * | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * (a) | | |
Palo Alto Networks, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
Unity Software, Inc. * (a) | | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
| | |
| | |
|
| | |
| | |
Digital Realty Trust, Inc. | | |
| | |
Extra Space Storage, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Specialty Retail — continued |
| | |
Burlington Stores, Inc. * | | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 7.1% |
| | |
Dell Technologies, Inc., Class C | | |
Hewlett Packard Enterprise Co. | | |
| | |
| | |
Seagate Technology Holdings plc | | |
| | |
| | |
Textiles, Apparel & Luxury Goods — 0.5% |
Lululemon Athletica, Inc. * | | |
| | |
| | |
| | |
| | |
|
| | |
Philip Morris International, Inc. | | |
| | |
Trading Companies & Distributors — 0.4% |
| | |
| | |
| | |
| | |
| | |
| | |
|
American Water Works Co., Inc. | | |
| | |
| | |
| | |
|
Wireless Telecommunication Services — 0.2% |
| | |
Total Common Stocks
(Cost $2,156,426,494) | | |
| | |
|
Health Care Equipment & Supplies — 0.0% ^ |
ABIOMED, Inc., CVR ‡ *
(Cost $1,764) | | |
| | |
Short-Term Investments — 2.7% |
Investment Companies — 0.7% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d)
(Cost $15,413,521) | | |
Investment of Cash Collateral from Securities Loaned — 2.0% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (c) (d) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $44,559,764) | | |
Total Short-Term Investments
(Cost $59,973,285) | | |
Total Investments — 101.9%
(Cost $2,216,401,543) | | |
Liabilities in Excess of Other Assets — (1.9)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Real Estate Investment Trust |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $44,049,242. | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| Investment in affiliate. This security is included in an index which the Fund, as an index fund, tracks. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 1.7% |
| | |
| | |
| | |
| | |
| | |
| | |
Spirit AeroSystems Holdings, Inc., Class A * (a) | | |
| | |
| | |
Air Freight & Logistics — 0.2% |
| | |
Automobile Components — 1.0% |
| | |
| | |
Fox Factory Holding Corp. * | | |
| | |
Goodyear Tire & Rubber Co. (The) * | | |
| | |
| | |
|
| | |
Thor Industries, Inc. (a) | | |
| | |
|
| | |
| | |
| | |
| | |
Commerce Bancshares, Inc. | | |
Cullen/Frost Bankers, Inc. | | |
First Citizens BancShares, Inc., Class A | | |
First Financial Bankshares, Inc. (a) | | |
| | |
| | |
Glacier Bancorp, Inc. (a) | | |
| | |
Home BancShares, Inc. (a) | | |
New York Community Bancorp, Inc. | | |
| | |
Pinnacle Financial Partners, Inc. | | |
Popular, Inc. (Puerto Rico) | | |
Prosperity Bancshares, Inc. | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Boston Beer Co., Inc. (The), Class A * | | |
| | |
Coca-Cola Consolidated, Inc. | | |
National Beverage Corp. * | | |
| | |
|
ACADIA Pharmaceuticals, Inc. * | | |
| | |
Amicus Therapeutics, Inc. * | | |
Apellis Pharmaceuticals, Inc. * (a) | | |
Arrowhead Pharmaceuticals, Inc. * | | |
Blueprint Medicines Corp. * | | |
Cerevel Therapeutics Holdings, Inc. * (a) | | |
CRISPR Therapeutics AG (Switzerland) * (a) | | |
| | |
Denali Therapeutics, Inc. * | | |
| | |
Halozyme Therapeutics, Inc. * | | |
Intellia Therapeutics, Inc. * | | |
Ionis Pharmaceuticals, Inc. * (a) | | |
Karuna Therapeutics, Inc. * (a) | | |
Madrigal Pharmaceuticals, Inc. * (a) | | |
| | |
| | |
| | |
Sarepta Therapeutics, Inc. * | | |
TG Therapeutics, Inc. * (a) | | |
Ultragenyx Pharmaceutical, Inc. * | | |
United Therapeutics Corp. * | | |
| | |
Vir Biotechnology, Inc. * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
Ollie's Bargain Outlet Holdings, Inc. * | | |
| | |
|
| | |
| | |
Advanced Drainage Systems, Inc. | | |
Armstrong World Industries, Inc. | | |
| | |
Builders FirstSource, Inc. * | | |
| | |
Simpson Manufacturing Co., Inc. | | |
| | |
| | |
Zurn Elkay Water Solutions Corp. | | |
| | |
|
Affiliated Managers Group, Inc. | | |
| | |
Blue Owl Capital, Inc. (a) | | |
| | |
| | |
| | |
Freedom Holding Corp. (Kazakhstan) * (a) | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
Tradeweb Markets, Inc., Class A | | |
| | |
|
| | |
| | |
Axalta Coating Systems Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Quaker Chemical Corp. (a) | | |
| | |
Scotts Miracle-Gro Co. (The) (a) | | |
Sensient Technologies Corp. | | |
| | |
Commercial Services & Supplies — 1.1% |
Casella Waste Systems, Inc., Class A * | | |
| | |
Driven Brands Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Communications Equipment — 0.4% |
| | |
| | |
Lumentum Holdings, Inc. * (a) | | |
| | |
Construction & Engineering — 2.2% |
| | |
| | |
| | |
Comfort Systems USA, Inc. | | |
| | |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
Construction Materials — 0.3% |
Eagle Materials, Inc. (a) | | |
Summit Materials, Inc., Class A * | | |
| | |
|
Credit Acceptance Corp. * (a) | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Consumer Finance — continued |
| | |
SoFi Technologies, Inc. * (a) | | |
| | |
Consumer Staples Distribution & Retail — 1.5% |
BJ's Wholesale Club Holdings, Inc. * | | |
Casey's General Stores, Inc. | | |
Performance Food Group Co. * | | |
Sprouts Farmers Market, Inc. * (a) | | |
| | |
| | |
Containers & Packaging — 1.4% |
| | |
| | |
Graphic Packaging Holding Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Diversified Consumer Services — 1.0% |
| | |
Bright Horizons Family Solutions, Inc. * (a) | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
Service Corp. International | | |
| | |
|
Essential Properties Realty Trust, Inc. (a) | | |
Diversified Telecommunication Services — 0.4% |
Cogent Communications Holdings, Inc. | | |
Frontier Communications Parent, Inc. * (a) | | |
Iridium Communications, Inc. | | |
| | |
Electric Utilities — 1.0% |
| | |
Hawaiian Electric Industries, Inc. (a) | | |
| | |
| | |
| | |
| | |
|
Electric Utilities — continued |
| | |
Portland General Electric Co. | | |
| | |
Electrical Equipment — 2.4% |
| | |
Array Technologies, Inc. * (a) | | |
| | |
Bloom Energy Corp., Class A * (a) | | |
ChargePoint Holdings, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Sensata Technologies Holding plc | | |
Shoals Technologies Group, Inc., Class A * | | |
| | |
| | |
| | |
Electronic Equipment, Instruments & Components — 2.8% |
Advanced Energy Industries, Inc. | | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Energy Equipment & Services — 1.2% |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Energy Equipment & Services — continued |
| | |
Weatherford International plc * | | |
| | |
|
Endeavor Group Holdings, Inc., Class A | | |
Madison Square Garden Sports Corp. * | | |
| | |
| | |
TKO Group Holdings, Inc. (a) | | |
Warner Music Group Corp., Class A (a) | | |
| | |
Financial Services — 1.8% |
| | |
| | |
Euronet Worldwide, Inc. * | | |
| | |
Jackson Financial, Inc., Class A | | |
| | |
| | |
PennyMac Financial Services, Inc. | | |
| | |
Shift4 Payments, Inc., Class A * (a) | | |
| | |
Toast, Inc., Class A * (a) | | |
| | |
| | |
| | |
|
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Simply Good Foods Co. (The) * (a) | | |
| | |
| | |
| | |
|
|
| | |
New Jersey Resources Corp. | | |
| | |
Southwest Gas Holdings, Inc. | | |
| | |
| | |
| | |
Ground Transportation — 1.8% |
Avis Budget Group, Inc. * | | |
Hertz Global Holdings, Inc. * (a) | | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
Lyft, Inc., Class A * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Health Care Equipment & Supplies — 2.5% |
| | |
| | |
| | |
Globus Medical, Inc., Class A * | | |
| | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
Integra LifeSciences Holdings Corp. * | | |
iRhythm Technologies, Inc. * | | |
Lantheus Holdings, Inc. * | | |
| | |
Merit Medical Systems, Inc. * | | |
| | |
| | |
| | |
| | |
Shockwave Medical, Inc. * (a) | | |
| | |
| | |
Health Care Providers & Services — 2.2% |
Acadia Healthcare Co., Inc. * | | |
AMN Healthcare Services, Inc. * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Health Care Providers & Services — continued |
| | |
| | |
| | |
| | |
| | |
LifeStance Health Group, Inc. * (a) | | |
Option Care Health, Inc. * | | |
| | |
Privia Health Group, Inc. * (a) | | |
| | |
| | |
Select Medical Holdings Corp. | | |
| | |
| | |
| | |
|
Medical Properties Trust, Inc. (a) | | |
Omega Healthcare Investors, Inc. (a) | | |
| | |
| | |
Health Care Technology — 0.3% |
| | |
Doximity, Inc., Class A * (a) | | |
Evolent Health, Inc., Class A * | | |
Teladoc Health, Inc. * (a) | | |
| | |
Hotel & Resort REITs — 0.3% |
Apple Hospitality REIT, Inc. (a) | | |
Ryman Hospitality Properties, Inc. | | |
| | |
Hotels, Restaurants & Leisure — 3.0% |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
DraftKings, Inc., Class A * | | |
Hilton Grand Vacations, Inc. * | | |
Hyatt Hotels Corp., Class A (a) | | |
Life Time Group Holdings, Inc. * | | |
| | |
Marriott Vacations Worldwide Corp. (a) | | |
Norwegian Cruise Line Holdings Ltd. * (a) | | |
Penn Entertainment, Inc. * | | |
| | |
|
Hotels, Restaurants & Leisure — continued |
Planet Fitness, Inc., Class A * | | |
SeaWorld Entertainment, Inc. * | | |
| | |
| | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
Household Durables — 1.9% |
Installed Building Products, Inc. | | |
| | |
| | |
| | |
| | |
Mohawk Industries, Inc. * | | |
| | |
| | |
Taylor Morrison Home Corp. * | | |
Tempur Sealy International, Inc. | | |
| | |
| | |
| | |
Household Products — 0.1% |
Reynolds Consumer Products, Inc. | | |
Independent Power and Renewable Electricity Producers — 0.2% |
| | |
Clearway Energy, Inc., Class C | | |
Ormat Technologies, Inc. (a) | | |
| | |
|
Americold Realty Trust, Inc. | | |
EastGroup Properties, Inc. | | |
First Industrial Realty Trust, Inc. | | |
Rexford Industrial Realty, Inc. | | |
| | |
| | |
| | |
|
American Equity Investment Life Holding Co. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Axis Capital Holdings Ltd. | | |
Brighthouse Financial, Inc. * | | |
| | |
Erie Indemnity Co., Class A | | |
First American Financial Corp. | | |
Hanover Insurance Group, Inc. (The) | | |
| | |
Kinsale Capital Group, Inc. | | |
Lincoln National Corp. (a) | | |
Old Republic International Corp. | | |
| | |
RenaissanceRe Holdings Ltd. (Bermuda) | | |
| | |
Ryan Specialty Holdings, Inc. * (a) | | |
Selective Insurance Group, Inc. | | |
| | |
White Mountains Insurance Group Ltd. | | |
| | |
Interactive Media & Services — 0.2% |
| | |
| | |
| | |
|
DigitalOcean Holdings, Inc. * (a) | | |
| | |
| | |
| | |
|
Acushnet Holdings Corp. (a) | | |
| | |
| | |
| | |
Topgolf Callaway Brands Corp. * (a) | | |
| | |
| | |
Life Sciences Tools & Services — 0.9% |
10X Genomics, Inc., Class A * | | |
| | |
| | |
| | |
| | |
|
Life Sciences Tools & Services — continued |
| | |
| | |
| | |
|
| | |
Allison Transmission Holdings, Inc. | | |
Chart Industries, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
Gates Industrial Corp. plc * | | |
| | |
| | |
| | |
John Bean Technologies Corp. | | |
Lincoln Electric Holdings, Inc. | | |
| | |
Mueller Industries, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
Marine Transportation — 0.2% |
| | |
|
| | |
New York Times Co. (The), Class A | | |
Nexstar Media Group, Inc. (a) | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Metals & Mining — continued |
| | |
Reliance Steel & Aluminum Co. | | |
| | |
United States Steel Corp. (a) | | |
Worthington Industries, Inc. | | |
| | |
Mortgage Real Estate Investment Trusts (REITs) — 0.7% |
AGNC Investment Corp. (a) | | |
Blackstone Mortgage Trust, Inc., Class A (a) | | |
| | |
Starwood Property Trust, Inc. (a) | | |
| | |
|
| | |
| | |
Northwestern Energy Group, Inc. | | |
| | |
|
| | |
| | |
| | |
Oil, Gas & Consumable Fuels — 4.4% |
| | |
Antero Resources Corp. * (a) | | |
California Resources Corp. | | |
Chesapeake Energy Corp. (a) | | |
| | |
| | |
Comstock Resources, Inc. (a) | | |
| | |
| | |
| | |
Magnolia Oil & Gas Corp., Class A (a) | | |
| | |
| | |
New Fortress Energy, Inc. (a) | | |
| | |
PBF Energy, Inc., Class A | | |
| | |
Permian Resources Corp. (a) | | |
Range Resources Corp. (a) | | |
| | |
|
Oil, Gas & Consumable Fuels — continued |
| | |
Southwestern Energy Co. * | | |
| | |
Paper & Forest Products — 0.1% |
| | |
Passenger Airlines — 0.4% |
| | |
American Airlines Group, Inc. * (a) | | |
| | |
Personal Care Products — 0.6% |
| | |
Coty, Inc., Class A * (a) | | |
| | |
| | |
| | |
|
Axsome Therapeutics, Inc. * (a) | | |
Elanco Animal Health, Inc. * (a) | | |
Intra-Cellular Therapies, Inc. * | | |
| | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
| | |
Professional Services — 2.9% |
Alight, Inc., Class A * (a) | | |
| | |
CACI International, Inc., Class A * | | |
| | |
| | |
Dun & Bradstreet Holdings, Inc. | | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Professional Services — continued |
Science Applications International Corp. | | |
| | |
| | |
Real Estate Management & Development — 0.3% |
Howard Hughes Holdings, Inc. * | | |
Jones Lang LaSalle, Inc. * | | |
| | |
|
American Homes 4 Rent, Class A | | |
Apartment Income REIT Corp. | | |
Independence Realty Trust, Inc. | | |
| | |
|
| | |
Brixmor Property Group, Inc. | | |
Kite Realty Group Trust (a) | | |
| | |
Phillips Edison & Co., Inc. (a) | | |
Spirit Realty Capital, Inc. | | |
| | |
Semiconductors & Semiconductor Equipment — 2.3% |
Allegro MicroSystems, Inc. (Japan) * | | |
| | |
Axcelis Technologies, Inc. * | | |
| | |
| | |
Lattice Semiconductor Corp. * (a) | | |
MACOM Technology Solutions Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Silicon Laboratories, Inc. * | | |
| | |
| | |
| | |
| | |
|
Altair Engineering, Inc., Class A * | | |
AppLovin Corp., Class A * | | |
| | |
| | |
|
|
| | |
| | |
CCC Intelligent Solutions Holdings, Inc. * | | |
Confluent, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
Informatica, Inc., Class A * | | |
Instructure Holdings, Inc. * | | |
Manhattan Associates, Inc. * | | |
MicroStrategy, Inc., Class A * (a) | | |
| | |
| | |
| | |
| | |
PowerSchool Holdings, Inc., Class A * (a) | | |
Procore Technologies, Inc. * | | |
| | |
SentinelOne, Inc., Class A * | | |
Smartsheet, Inc., Class A * | | |
| | |
| | |
| | |
UiPath, Inc., Class A * (a) | | |
| | |
| | |
|
| | |
| | |
Gaming and Leisure Properties, Inc. | | |
Lamar Advertising Co., Class A (a) | | |
National Storage Affiliates Trust | | |
| | |
| | |
| | |
|
Academy Sports & Outdoors, Inc. | | |
Asbury Automotive Group, Inc. * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Specialty Retail — continued |
Chewy, Inc., Class A * (a) | | |
Dick's Sporting Goods, Inc. | | |
| | |
Floor & Decor Holdings, Inc., Class A * (a) | | |
| | |
GameStop Corp., Class A * (a) | | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
Penske Automotive Group, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 0.8% |
Pure Storage, Inc., Class A * | | |
Super Micro Computer, Inc. * (a) | | |
| | |
Textiles, Apparel & Luxury Goods — 1.7% |
| | |
| | |
| | |
| | |
| | |
| | |
Skechers U.S.A., Inc., Class A * | | |
Under Armour, Inc., Class A * | | |
Under Armour, Inc., Class C * | | |
| | |
Trading Companies & Distributors — 1.5% |
| | |
Applied Industrial Technologies, Inc. | | |
Beacon Roofing Supply, Inc. * | | |
Core & Main, Inc., Class A * (a) | | |
| | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
Rush Enterprises, Inc., Class A | | |
Rush Enterprises, Inc., Class B | | |
| | |
|
Trading Companies & Distributors — continued |
SiteOne Landscape Supply, Inc. * | | |
WESCO International, Inc. | | |
| | |
|
American States Water Co. | | |
California Water Service Group | | |
Essential Utilities, Inc. | | |
| | |
Total Common Stocks
(Cost $1,510,077,695) | | |
Short-Term Investments — 12.0% |
Investment Companies — 1.0% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)
(Cost $14,241,062) | | |
Investment of Cash Collateral from Securities Loaned — 11.0% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (b) (c) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $155,293,935) | | |
Total Short-Term Investments
(Cost $169,534,997) | | |
Total Investments — 110.7%
(Cost $1,679,612,692) | | |
Liabilities in Excess of Other Assets — (10.7)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $154,016,364. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
S&P MidCap 400 E-Mini Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 1.5% |
| | |
| | |
| | |
| | |
| | |
Kratos Defense & Security Solutions, Inc. * | | |
| | |
| | |
Rocket Lab USA, Inc. * (a) | | |
| | |
| | |
Virgin Galactic Holdings, Inc. * (a) | | |
| | |
Air Freight & Logistics — 0.4% |
Air Transport Services Group, Inc. * | | |
| | |
Hub Group, Inc., Class A * | | |
| | |
Automobile Components — 1.5% |
American Axle & Manufacturing Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Luminar Technologies, Inc. * (a) | | |
Mobileye Global, Inc., Class A (Israel) * (a) | | |
| | |
| | |
Standard Motor Products, Inc. | | |
| | |
| | |
|
| | |
Winnebago Industries, Inc. (a) | | |
| | |
|
| | |
Amalgamated Financial Corp. | | |
| | |
| | |
| | |
Atlantic Union Bankshares Corp. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Berkshire Hills Bancorp, Inc. | | |
| | |
| | |
|
|
Capitol Federal Financial, Inc. | | |
| | |
| | |
Columbia Financial, Inc. * | | |
Community Bank System, Inc. | | |
Community Trust Bancorp, Inc. | | |
Customers Bancorp, Inc. * | | |
| | |
Dime Community Bancshares, Inc. | | |
| | |
| | |
Enterprise Financial Services Corp. | | |
| | |
| | |
First BanCorp (Puerto Rico) | | |
| | |
First Commonwealth Financial Corp. | | |
| | |
| | |
First Interstate BancSystem, Inc., Class A | | |
| | |
| | |
German American Bancorp, Inc. | | |
Heartland Financial USA, Inc. | | |
| | |
| | |
| | |
| | |
Independent Bank Group, Inc. | | |
International Bancshares Corp. | | |
| | |
| | |
| | |
Live Oak Bancshares, Inc. | | |
National Bank Holdings Corp., Class A | | |
| | |
| | |
| | |
Northwest Bancshares, Inc. (a) | | |
OceanFirst Financial Corp. | | |
OFG Bancorp (Puerto Rico) | | |
| | |
Pacific Premier Bancorp, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Provident Financial Services, Inc. | | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
Sandy Spring Bancorp, Inc. | | |
Seacoast Banking Corp. of Florida | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
ServisFirst Bancshares, Inc. | | |
Simmons First National Corp., Class A | | |
Southside Bancshares, Inc. | | |
| | |
Stock Yards Bancorp, Inc. | | |
Texas Capital Bancshares, Inc. * | | |
Tompkins Financial Corp. (a) | | |
| | |
| | |
Triumph Financial, Inc. * | | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Duckhorn Portfolio, Inc. (The) * | | |
MGP Ingredients, Inc. (a) | | |
Vita Coco Co., Inc. (The) * (a) | | |
| | |
|
Agios Pharmaceuticals, Inc. * | | |
Akero Therapeutics, Inc. * | | |
| | |
Allogene Therapeutics, Inc. * (a) | | |
| | |
| | |
Arcus Biosciences, Inc. * | | |
Arcutis Biotherapeutics, Inc. * (a) | | |
| | |
Aurinia Pharmaceuticals, Inc. (Canada) * (a) | | |
| | |
Avidity Biosciences, Inc. * | | |
Beam Therapeutics, Inc. * (a) | | |
BioCryst Pharmaceuticals, Inc. * (a) | | |
| | |
| | |
Catalyst Pharmaceuticals, Inc. * | | |
Celldex Therapeutics, Inc. * | | |
Cogent Biosciences, Inc. * | | |
Coherus Biosciences, Inc. * (a) | | |
Day One Biopharmaceuticals, Inc. * | | |
Deciphera Pharmaceuticals, Inc. * | | |
Dynavax Technologies Corp. * (a) | | |
Editas Medicine, Inc. * (a) | | |
Enanta Pharmaceuticals, Inc. * | | |
| | |
Fate Therapeutics, Inc. * | | |
| | |
| | |
| | |
|
Biotechnology — continued |
| | |
| | |
| | |
| | |
Iovance Biotherapeutics, Inc. * | | |
Ironwood Pharmaceuticals, Inc. * | | |
Janux Therapeutics, Inc. * (a) | | |
Keros Therapeutics, Inc. * | | |
| | |
| | |
Kymera Therapeutics, Inc. * | | |
Lyell Immunopharma, Inc. * (a) | | |
Mirati Therapeutics, Inc. * | | |
| | |
| | |
| | |
Nuvalent, Inc., Class A * | | |
OmniAb Operations, Inc. ‡ * | | |
Protagonist Therapeutics, Inc. * | | |
Prothena Corp. plc (Ireland) * (a) | | |
Recursion Pharmaceuticals, Inc., Class A * (a) | | |
| | |
Relay Therapeutics, Inc. * | | |
| | |
REVOLUTION Medicines, Inc. * | | |
Rhythm Pharmaceuticals, Inc. * (a) | | |
Rocket Pharmaceuticals, Inc. * | | |
Sage Therapeutics, Inc. * | | |
Sana Biotechnology, Inc. * (a) | | |
Seres Therapeutics, Inc. * | | |
SpringWorks Therapeutics, Inc. * | | |
Syndax Pharmaceuticals, Inc. * | | |
Travere Therapeutics, Inc. * | | |
| | |
| | |
| | |
Verve Therapeutics, Inc. * (a) | | |
Viking Therapeutics, Inc. * (a) | | |
Viridian Therapeutics, Inc. * | | |
| | |
Zentalis Pharmaceuticals, Inc. * | | |
| | |
|
| | |
| | |
| | |
|
American Woodmark Corp. * | | |
| | |
| | |
Gibraltar Industries, Inc. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Building Products — continued |
Janus International Group, Inc. * | | |
| | |
Masonite International Corp. * | | |
| | |
| | |
Quanex Building Products Corp. | | |
Resideo Technologies, Inc. * | | |
| | |
| | |
|
Artisan Partners Asset Management, Inc., Class A (a) | | |
AssetMark Financial Holdings, Inc. * | | |
| | |
B. Riley Financial, Inc. (a) | | |
| | |
Brightsphere Investment Group, Inc. | | |
Donnelley Financial Solutions, Inc. * | | |
Hamilton Lane, Inc., Class A | | |
Moelis & Co., Class A (a) | | |
| | |
| | |
PJT Partners, Inc., Class A | | |
StepStone Group, Inc., Class A | | |
| | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtu Financial, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
|
| | |
| | |
Ginkgo Bioworks Holdings, Inc. * (a) | | |
| | |
| | |
Kronos Worldwide, Inc. (a) | | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
PureCycle Technologies, Inc. * (a) | | |
| | |
| | |
| | |
| | |
Commercial Services & Supplies — 2.4% |
| | |
ACV Auctions, Inc., Class A * | | |
| | |
BrightView Holdings, Inc. * | | |
| | |
|
Commercial Services & Supplies — continued |
| | |
| | |
| | |
| | |
GEO Group, Inc. (The) * (a) | | |
Healthcare Services Group, Inc. | | |
| | |
Matthews International Corp., Class A | | |
| | |
Montrose Environmental Group, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Communications Equipment — 1.0% |
| | |
| | |
CommScope Holding Co., Inc. * | | |
Digi International, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Construction & Engineering — 1.1% |
Ameresco, Inc., Class A * (a) | | |
Construction Partners, Inc., Class A * | | |
| | |
Granite Construction, Inc. (a) | | |
| | |
| | |
Sterling Infrastructure, Inc. * | | |
| | |
Construction Materials — 0.0% ^ |
United States Lime & Minerals, Inc. | | |
|
Bread Financial Holdings, Inc. | | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
Green Dot Corp., Class A * | | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Consumer Finance — continued |
| | |
World Acceptance Corp. * (a) | | |
| | |
Consumer Staples Distribution & Retail — 0.9% |
| | |
Chefs' Warehouse, Inc. (The) * | | |
Grocery Outlet Holding Corp. * | | |
Ingles Markets, Inc., Class A | | |
| | |
| | |
United Natural Foods, Inc. * | | |
| | |
| | |
Containers & Packaging — 0.2% |
| | |
| | |
| | |
| | |
Diversified Consumer Services — 1.6% |
Adtalem Global Education, Inc. * | | |
| | |
| | |
European Wax Center, Inc., Class A * (a) | | |
| | |
Graham Holdings Co., Class B | | |
Laureate Education, Inc., Class A | | |
Mister Car Wash, Inc. * (a) | | |
OneSpaWorld Holdings Ltd. (Bahamas) * | | |
| | |
Strategic Education, Inc. | | |
| | |
| | |
| | |
|
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
Broadstone Net Lease, Inc. | | |
Empire State Realty Trust, Inc., Class A | | |
| | |
| | |
Diversified Telecommunication Services — 0.4% |
EchoStar Corp., Class A * | | |
| | |
Liberty Latin America Ltd., Class A (Puerto Rico) * | | |
Liberty Latin America Ltd., Class C (Puerto Rico) * | | |
Lumen Technologies, Inc. * (a) | | |
| | |
| | |
|
Electric Utilities — 0.2% |
| | |
Electrical Equipment — 0.9% |
| | |
| | |
Fluence Energy, Inc. * (a) | | |
FREYR Battery SA (Norway) * (a) | | |
FuelCell Energy, Inc. * (a) | | |
GrafTech International Ltd. | | |
NEXTracker, Inc., Class A * (a) | | |
| | |
| | |
| | |
| | |
| | |
Electronic Equipment, Instruments & Components — 2.1% |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Lightwave Logic, Inc. * (a) | | |
Methode Electronics, Inc. | | |
Mirion Technologies, Inc. * | | |
Napco Security Technologies, Inc. | | |
| | |
PAR Technology Corp. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Vishay Intertechnology, Inc. | | |
| | |
Energy Equipment & Services — 2.3% |
| | |
Atlas Energy Solutions, Inc. | | |
| | |
Core Laboratories, Inc. (a) | | |
Diamond Offshore Drilling, Inc. * | | |
| | |
Helix Energy Solutions Group, Inc. * | | |
| | |
| | |
Oceaneering International, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
ProFrac Holding Corp., Class A * | | |
| | |
| | |
| | |
US Silica Holdings, Inc. * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
AMC Entertainment Holdings, Inc., Class A * | | |
Atlanta Braves Holdings, Inc., Class A * (a) | | |
Atlanta Braves Holdings, Inc., Class C * | | |
Cinemark Holdings, Inc. * (a) | | |
| | |
Lions Gate Entertainment Corp., Class A * | | |
Lions Gate Entertainment Corp., Class B * | | |
Madison Square Garden Entertainment Corp. * | | |
Sphere Entertainment Co. * (a) | | |
Vivid Seats, Inc., Class A * | | |
| | |
Financial Services — 2.2% |
Affirm Holdings, Inc. * (a) | | |
AvidXchange Holdings, Inc. * | | |
| | |
Compass Diversified Holdings | | |
EVERTEC, Inc. (Puerto Rico) | | |
Federal Agricultural Mortgage Corp., Class C | | |
International Money Express, Inc. * | | |
| | |
| | |
NMI Holdings, Inc., Class A * | | |
| | |
| | |
| | |
Rocket Cos., Inc., Class A * (a) | | |
| | |
| | |
|
| | |
| | |
| | |
Cal-Maine Foods, Inc. (a) | | |
Fresh Del Monte Produce, Inc. | | |
Hain Celestial Group, Inc. (The) * | | |
| | |
| | |
Tootsie Roll Industries, Inc. | | |
| | |
| | |
|
Chesapeake Utilities Corp. | | |
Northwest Natural Holding Co. | | |
| | |
Ground Transportation — 0.8% |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
|
Ground Transportation — continued |
Universal Logistics Holdings, Inc. | | |
| | |
| | |
Health Care Equipment & Supplies — 2.2% |
Alphatec Holdings, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Establishment Labs Holdings, Inc. (Costa Rica) * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
PROCEPT BioRobotics Corp. * (a) | | |
Silk Road Medical, Inc. * | | |
Tandem Diabetes Care, Inc. * | | |
TransMedics Group, Inc. * (a) | | |
Treace Medical Concepts, Inc. * | | |
| | |
| | |
Health Care Providers & Services — 2.3% |
23andMe Holding Co. * (a) | | |
| | |
| | |
| | |
Alignment Healthcare, Inc. * | | |
| | |
Apollo Medical Holdings, Inc. * (a) | | |
Brookdale Senior Living, Inc. * | | |
Castle Biosciences, Inc. * | | |
Cross Country Healthcare, Inc. * | | |
| | |
| | |
| | |
Hims & Hers Health, Inc. * | | |
| | |
National HealthCare Corp. | | |
| | |
| | |
| | |
| | |
| | |
Pediatrix Medical Group, Inc. * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Health Care Providers & Services — continued |
| | |
US Physical Therapy, Inc. | | |
| | |
|
| | |
| | |
National Health Investors, Inc. | | |
Sabra Health Care REIT, Inc. | | |
Universal Health Realty Income Trust | | |
| | |
Health Care Technology — 0.6% |
American Well Corp., Class A * | | |
Definitive Healthcare Corp. * | | |
| | |
| | |
| | |
NextGen Healthcare, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
Hotel & Resort REITs — 1.1% |
DiamondRock Hospitality Co. | | |
Park Hotels & Resorts, Inc. | | |
Pebblebrook Hotel Trust (a) | | |
| | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
Xenia Hotels & Resorts, Inc. | | |
| | |
Hotels, Restaurants & Leisure — 2.4% |
| | |
| | |
Bloomin' Brands, Inc. (a) | | |
Bowlero Corp., Class A * (a) | | |
Brinker International, Inc. * | | |
Cheesecake Factory, Inc. (The) (a) | | |
Cracker Barrel Old Country Store, Inc. (a) | | |
Dave & Buster's Entertainment, Inc. * | | |
| | |
| | |
Dutch Bros, Inc., Class A * (a) | | |
| | |
First Watch Restaurant Group, Inc. * | | |
Golden Entertainment, Inc. | | |
| | |
| | |
Monarch Casino & Resort, Inc. | | |
Papa John's International, Inc. (a) | | |
| | |
|
Hotels, Restaurants & Leisure — continued |
Portillo's, Inc., Class A * | | |
Red Rock Resorts, Inc., Class A | | |
| | |
Shake Shack, Inc., Class A * | | |
Six Flags Entertainment Corp. * | | |
Sweetgreen, Inc., Class A * | | |
Target Hospitality Corp. * | | |
| | |
Household Durables — 1.6% |
| | |
Century Communities, Inc. | | |
| | |
Green Brick Partners, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Vizio Holding Corp., Class A * | | |
| | |
Household Products — 0.9% |
Central Garden & Pet Co. * | | |
Central Garden & Pet Co., Class A * | | |
| | |
Spectrum Brands Holdings, Inc. | | |
| | |
| | |
Independent Power and Renewable Electricity Producers — 0.2% |
| | |
Montauk Renewables, Inc. * (a) | | |
Sunnova Energy International, Inc. * (a) | | |
| | |
|
Innovative Industrial Properties, Inc. (a) | | |
| | |
| | |
|
| | |
Argo Group International Holdings Ltd. | | |
BRP Group, Inc., Class A * | | |
CNO Financial Group, Inc. | | |
| | |
F&G Annuities & Life, Inc. (a) | | |
Genworth Financial, Inc., Class A * | | |
Goosehead Insurance, Inc., Class A * | | |
Hagerty, Inc., Class A * (a) | | |
Horace Mann Educators Corp. | | |
James River Group Holdings Ltd. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
Oscar Health, Inc., Class A * | | |
| | |
| | |
Safety Insurance Group, Inc. | | |
SiriusPoint Ltd. (Bermuda) * | | |
Skyward Specialty Insurance Group, Inc. * (a) | | |
Stewart Information Services Corp. | | |
| | |
| | |
Interactive Media & Services — 1.0% |
| | |
| | |
| | |
Eventbrite, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
ZipRecruiter, Inc., Class A * | | |
| | |
|
BigCommerce Holdings, Inc. * | | |
| | |
Grid Dynamics Holdings, Inc. * | | |
| | |
Squarespace, Inc., Class A * | | |
Thoughtworks Holding, Inc. * | | |
| | |
|
Malibu Boats, Inc., Class A * | | |
Peloton Interactive, Inc., Class A * (a) | | |
Smith & Wesson Brands, Inc. (a) | | |
| | |
| | |
| | |
Life Sciences Tools & Services — 0.4% |
Adaptive Biotechnologies Corp. * | | |
BioLife Solutions, Inc. * | | |
| | |
Cytek Biosciences, Inc. * | | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
Pacific Biosciences of California, Inc. * | | |
| | |
| | |
|
| | |
| | |
| | |
|
|
Albany International Corp., Class A | | |
| | |
| | |
Desktop Metal, Inc., Class A * (a) | | |
| | |
| | |
| | |
| | |
| | |
Greenbrier Cos., Inc. (The) (a) | | |
Helios Technologies, Inc. | | |
Hillman Solutions Corp. * | | |
| | |
| | |
| | |
Mueller Water Products, Inc., Class A | | |
| | |
| | |
| | |
Standex International Corp. | | |
| | |
| | |
| | |
| | |
| | |
Marine Transportation — 0.3% |
| | |
|
Altice USA, Inc., Class A * | | |
AMC Networks, Inc., Class A * | | |
Clear Channel Outdoor Holdings, Inc. * | | |
DISH Network Corp., Class A * (a) | | |
EW Scripps Co. (The), Class A * | | |
| | |
Integral Ad Science Holding Corp. * | | |
John Wiley & Sons, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Alpha Metallurgical Resources, Inc. | | |
| | |
Carpenter Technology Corp. | | |
| | |
| | |
Compass Minerals International, Inc. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Metals & Mining — continued |
| | |
| | |
| | |
| | |
Schnitzer Steel Industries, Inc., Class A | | |
| | |
| | |
Mortgage Real Estate Investment Trusts (REITs) — 1.6% |
Apollo Commercial Real Estate Finance, Inc. | | |
Arbor Realty Trust, Inc. (a) | | |
ARMOUR Residential REIT, Inc. (a) | | |
Brightspire Capital, Inc. | | |
| | |
Claros Mortgage Trust, Inc. | | |
Franklin BSP Realty Trust, Inc. | | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. (a) | | |
KKR Real Estate Finance Trust, Inc. | | |
| | |
| | |
New York Mortgage Trust, Inc. | | |
PennyMac Mortgage Investment Trust (a) | | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
Two Harbors Investment Corp. | | |
| | |
|
| | |
| | |
| | |
Easterly Government Properties, Inc. | | |
| | |
Highwoods Properties, Inc. (a) | | |
Hudson Pacific Properties, Inc. (a) | | |
| | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
SL Green Realty Corp. (a) | | |
| | |
| | |
Oil, Gas & Consumable Fuels — 3.5% |
Callon Petroleum Co. * (a) | | |
Clean Energy Fuels Corp. * | | |
| | |
| | |
| | |
| | |
Earthstone Energy, Inc., Class A * | | |
| | |
Equitrans Midstream Corp. | | |
| | |
| | |
|
Oil, Gas & Consumable Fuels — continued |
| | |
HighPeak Energy, Inc. (a) | | |
International Seaways, Inc. | | |
Kinetik Holdings, Inc. (a) | | |
Kosmos Energy Ltd. (Ghana) * | | |
| | |
Northern Oil and Gas, Inc. | | |
Par Pacific Holdings, Inc. * | | |
Riley Exploration Permian, Inc. | | |
Sitio Royalties Corp. (a) | | |
| | |
| | |
Uranium Energy Corp. * (a) | | |
| | |
| | |
| | |
| | |
Paper & Forest Products — 0.2% |
Mercer International, Inc. (Germany) | | |
| | |
| | |
Passenger Airlines — 0.7% |
| | |
Frontier Group Holdings, Inc. * | | |
JetBlue Airways Corp. * (a) | | |
Joby Aviation, Inc. * (a) | | |
| | |
Spirit Airlines, Inc. (a) | | |
Sun Country Airlines Holdings, Inc. * | | |
| | |
Personal Care Products — 0.5% |
Beauty Health Co. (The) * (a) | | |
Edgewell Personal Care Co. | | |
| | |
| | |
Nu Skin Enterprises, Inc., Class A | | |
| | |
USANA Health Sciences, Inc. * | | |
| | |
|
Aclaris Therapeutics, Inc. * | | |
Amphastar Pharmaceuticals, Inc. * (a) | | |
Amylyx Pharmaceuticals, Inc. * | | |
| | |
Cassava Sciences, Inc. * (a) | | |
Corcept Therapeutics, Inc. * | | |
Enliven Therapeutics, Inc. * (a) | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Ligand Pharmaceuticals, Inc. * | | |
Pacira BioSciences, Inc. * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Pharmaceuticals — continued |
Pliant Therapeutics, Inc. * | | |
Revance Therapeutics, Inc. * | | |
Supernus Pharmaceuticals, Inc. * | | |
Tilray Brands, Inc. (Canada) * (a) | | |
Ventyx Biosciences, Inc. * | | |
| | |
Professional Services — 2.0% |
| | |
| | |
CSG Systems International, Inc. | | |
| | |
Forrester Research, Inc. * | | |
HireRight Holdings Corp. * | | |
Huron Consulting Group, Inc. * | | |
| | |
Kelly Services, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Real Estate Management & Development — 1.1% |
Anywhere Real Estate, Inc. * | | |
| | |
Cushman & Wakefield plc * | | |
DigitalBridge Group, Inc. (a) | | |
eXp World Holdings, Inc. (a) | | |
| | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * (a) | | |
| | |
| | |
| | |
|
Apartment Investment and Management Co., Class A * | | |
| | |
| | |
NexPoint Residential Trust, Inc. | | |
| | |
| | |
|
| | |
| | |
|
|
| | |
CBL & Associates Properties, Inc. (a) | | |
| | |
InvenTrust Properties Corp. | | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
| | |
| | |
Tanger Factory Outlet Centers, Inc. (a) | | |
| | |
| | |
Semiconductors & Semiconductor Equipment — 1.9% |
| | |
| | |
Credo Technology Group Holding Ltd. * | | |
| | |
| | |
| | |
indie Semiconductor, Inc., Class A (China) * (a) | | |
Kulicke & Soffa Industries, Inc. (Singapore) | | |
| | |
Navitas Semiconductor Corp. * | | |
| | |
| | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
Veeco Instruments, Inc. * | | |
| | |
|
| | |
| | |
| | |
| | |
Alarm.com Holdings, Inc. * | | |
Alkami Technology, Inc. * | | |
| | |
Amplitude, Inc., Class A * | | |
Appfolio, Inc., Class A * | | |
| | |
Asana, Inc., Class A * (a) | | |
Aurora Innovation, Inc. * (a) | | |
| | |
| | |
C3.ai, Inc., Class A * (a) | | |
| | |
Clear Secure, Inc., Class A (a) | | |
Clearwater Analytics Holdings, Inc., Class A * | | |
CommVault Systems, Inc. * | | |
Consensus Cloud Solutions, Inc. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
E2open Parent Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Expensify, Inc., Class A * | | |
Freshworks, Inc., Class A * | | |
| | |
HashiCorp, Inc., Class A * | | |
| | |
| | |
| | |
| | |
LiveRamp Holdings, Inc. * | | |
Marathon Digital Holdings, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
RingCentral, Inc., Class A * | | |
Riot Platforms, Inc. * (a) | | |
| | |
| | |
Sprinklr, Inc., Class A * | | |
Sprout Social, Inc., Class A * (a) | | |
| | |
| | |
Zeta Global Holdings Corp., Class A * | | |
| | |
| | |
|
Four Corners Property Trust, Inc. | | |
| | |
| | |
| | |
| | |
|
Abercrombie & Fitch Co., Class A * | | |
American Eagle Outfitters, Inc. | | |
| | |
Boot Barn Holdings, Inc. * | | |
| | |
| | |
Camping World Holdings, Inc., Class A (a) | | |
| | |
| | |
| | |
| | |
|
Specialty Retail — continued |
| | |
National Vision Holdings, Inc. * | | |
| | |
| | |
Petco Health & Wellness Co., Inc. * (a) | | |
Revolve Group, Inc. * (a) | | |
Sally Beauty Holdings, Inc. * | | |
| | |
Sonic Automotive, Inc., Class A | | |
| | |
| | |
Victoria's Secret & Co. * (a) | | |
Warby Parker, Inc., Class A * | | |
Wayfair, Inc., Class A * (a) | | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 0.4% |
| | |
| | |
| | |
| | |
| | |
Textiles, Apparel & Luxury Goods — 1.2% |
| | |
| | |
G-III Apparel Group Ltd. * | | |
| | |
| | |
Levi Strauss & Co., Class A (a) | | |
| | |
| | |
Wolverine World Wide, Inc. | | |
| | |
|
| | |
| | |
| | |
Trading Companies & Distributors — 1.7% |
| | |
Custom Truck One Source, Inc. * (a) | | |
Distribution Solutions Group, Inc. * | | |
| | |
| | |
| | |
H&E Equipment Services, Inc. | | |
| | |
| | |
| | |
Xometry, Inc., Class A * (a) | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Wireless Telecommunication Services — 0.4% |
| | |
Shenandoah Telecommunications Co. | | |
Telephone and Data Systems, Inc. | | |
United States Cellular Corp. * | | |
| | |
Total Common Stocks
(Cost $766,998,882) | | |
| | |
Short-Term Investments — 17.2% |
Investment Companies — 0.5% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d)
(Cost $3,209,614) | | |
Investment of Cash Collateral from Securities Loaned — 16.7% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (c) (d) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $104,144,270) | | |
Total Short-Term Investments
(Cost $107,353,884) | | |
Total Investments — 116.6%
(Cost $874,352,766) | | |
Liabilities in Excess of Other Assets — (16.6)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $102,117,546. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
Russell 2000 E-Mini Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.2% |
| | |
L3Harris Technologies, Inc. | | |
| | |
Air Freight & Logistics — 0.2% |
CH Robinson Worldwide, Inc. | | |
Expeditors International of Washington, Inc. | | |
United Parcel Service, Inc., Class B | | |
| | |
Automobile Components — 0.2% |
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
PNC Financial Services Group, Inc. (The) | | |
| | |
| | |
| | |
|
Brown-Forman Corp., Class B | | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
| | |
| | |
|
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
Ionis Pharmaceuticals, Inc. * | | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
|
Biotechnology — continued |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
Lennox International, Inc. | | |
| | |
| | |
| | |
|
| | |
Bank of New York Mellon Corp. (The) | | |
| | |
| | |
Carlyle Group, Inc. (The) | | |
Charles Schwab Corp. (The) | | |
| | |
FactSet Research Systems, Inc. | | |
Goldman Sachs Group, Inc. (The) | | |
| | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
LPL Financial Holdings, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Robinhood Markets, Inc., Class A * | | |
| | |
T. Rowe Price Group, Inc. | | |
Tradeweb Markets, Inc., Class A | | |
XP, Inc., Class A (Brazil) | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
| | |
International Flavors & Fragrances, Inc. | | |
| | |
| | |
Scotts Miracle-Gro Co. (The) | | |
| | |
Commercial Services & Supplies — 0.6% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Communications Equipment — 1.4% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Construction & Engineering — 0.1% |
| | |
| | |
| | |
|
| | |
| | |
Capital One Financial Corp. | | |
| | |
| | |
| | |
Consumer Staples Distribution & Retail — 0.8% |
| | |
| | |
|
Consumer Staples Distribution & Retail — continued |
| | |
| | |
| | |
Containers & Packaging — 0.1% |
| | |
|
| | |
Diversified Telecommunication Services — 0.2% |
| | |
Iridium Communications, Inc. | | |
Verizon Communications, Inc. | | |
| | |
Electric Utilities — 1.2% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Electrical Equipment — 0.7% |
| | |
| | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
| | |
Electronic Equipment, Instruments & Components — 0.5% |
| | |
| | |
Keysight Technologies, Inc. * | | |
Teledyne Technologies, Inc. * | | |
| | |
| | |
Zebra Technologies Corp., Class A * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Energy Equipment & Services — 0.7% |
| | |
| | |
| | |
|
| | |
Liberty Media Corp-Liberty Formula One, Class C * | | |
| | |
| | |
Take-Two Interactive Software, Inc. * | | |
| | |
| | |
Financial Services — 4.8% |
Apollo Global Management, Inc. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Fidelity National Information Services, Inc. | | |
| | |
| | |
Jack Henry & Associates, Inc. | | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
McCormick & Co., Inc. (Non-Voting) | | |
Mondelez International, Inc., Class A | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
Ground Transportation — 0.6% |
| | |
Uber Technologies, Inc. * | | |
| | |
| | |
Health Care Equipment & Supplies — 1.9% |
| | |
Boston Scientific Corp. * | | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
| | |
Health Care Providers & Services — 3.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Medical Properties Trust, Inc. | | |
Omega Healthcare Investors, Inc. | | |
| | |
Health Care Technology — 0.0% ^ |
| | |
Hotels, Restaurants & Leisure — 2.1% |
| | |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
Planet Fitness, Inc., Class A * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Hotels, Restaurants & Leisure — continued |
| | |
| | |
| | |
Household Durables — 0.1% |
| | |
Household Products — 1.8% |
Church & Dwight Co., Inc. | | |
| | |
| | |
Procter & Gamble Co. (The) | | |
Spectrum Brands Holdings, Inc. | | |
| | |
Independent Power and Renewable Electricity Producers — 0.0% ^ |
Brookfield Renewable Corp. | | |
Industrial Conglomerates — 0.6% |
| | |
|
| | |
Rexford Industrial Realty, Inc. | | |
| | |
|
| | |
| | |
American International Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
Hartford Financial Services Group, Inc. (The) | | |
| | |
Marsh & McLennan Cos., Inc. | | |
| | |
Principal Financial Group, Inc. | | |
| | |
Prudential Financial, Inc. | | |
RenaissanceRe Holdings Ltd. (Bermuda) | | |
Travelers Cos., Inc. (The) | | |
| | |
| | |
| | |
| | |
|
Interactive Media & Services — 5.0% |
Alphabet, Inc., Class A * | | |
| | |
Meta Platforms, Inc., Class A * | | |
Pinterest, Inc., Class A * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
|
| | |
Cloudflare, Inc., Class A * | | |
| | |
| | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
|
| | |
Peloton Interactive, Inc., Class A * | | |
| | |
| | |
Life Sciences Tools & Services — 1.2% |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
Mettler-Toledo International, Inc. * | | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Illinois Tool Works, Inc. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Interpublic Group of Cos., Inc. (The) | | |
Liberty Media Corp-Liberty SiriusXM * | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Mortgage Real Estate Investment Trusts (REITs) — 0.1% |
| | |
Annaly Capital Management, Inc. | | |
| | |
|
| | |
Consolidated Edison, Inc. | | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
|
| | |
Oil, Gas & Consumable Fuels — 3.6% |
| | |
| | |
| | |
| | |
| | |
New Fortress Energy, Inc. | | |
| | |
Williams Cos., Inc. (The) | | |
| | |
| | |
|
Personal Care Products — 0.2% |
| | |
Estee Lauder Cos., Inc. (The), Class A | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Professional Services — 1.2% |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
Ceridian HCM Holding, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Science Applications International Corp. | | |
| | |
| | |
| | |
Real Estate Management & Development — 0.2% |
CBRE Group, Inc., Class A * | | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
|
American Homes 4 Rent, Class A | | |
AvalonBay Communities, Inc. | | |
Equity LifeStyle Properties, Inc. | | |
| | |
Essex Property Trust, Inc. | | |
| | |
| | |
|
Brixmor Property Group, Inc. | | |
Federal Realty Investment Trust | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Carbon Transition U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
Spirit Realty Capital, Inc. | | |
| | |
Semiconductors & Semiconductor Equipment — 5.8% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
Cadence Design Systems, Inc. * | | |
Confluent, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
Guidewire Software, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Extra Space Storage, Inc. | | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Floor & Decor Holdings, Inc., Class A * | | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
Penske Automotive Group, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 6.9% |
| | |
Textiles, Apparel & Luxury Goods — 1.1% |
| | |
| | |
Lululemon Athletica, Inc. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Textiles, Apparel & Luxury Goods — continued |
| | |
| | |
| | |
Trading Companies & Distributors — 0.4% |
| | |
| | |
WESCO International, Inc. | | |
| | |
| | |
|
American Water Works Co., Inc. | | |
Essential Utilities, Inc. | | |
| | |
| | |
Total Common Stocks
(Cost $5,845,776) | | |
Short-Term Investments — 0.2% |
Investment Companies — 0.2% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b)
(Cost $10,503) | | |
Total Investments — 99.5%
(Cost $5,856,279) | | |
Other Assets Less Liabilities — 0.5% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Amount rounds to less than 0.1% of net assets. |
| Non-income producing security. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
Micro E-mini S&P 500 Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
BB Seguridade Participacoes SA | | |
Bradespar SA (Preference) | | |
Caixa Seguridade Participacoes S/A | | |
| | |
Centrais Eletricas Brasileiras SA | | |
Cia de Saneamento Basico do Estado de Sao Paulo SABESP | | |
Cia Energetica de Minas Gerais (Preference) | | |
Cia Paranaense de Energia (Preference) | | |
| | |
| | |
| | |
CTEEP-Cia de Transmissao de Energia Eletrica Paulista (Preference) | | |
| | |
| | |
| | |
| | |
Itau Unibanco Holding SA (Preference) | | |
| | |
| | |
Metalurgica Gerdau SA (Preference) | | |
| | |
Petroleo Brasileiro SA (Preference) | | |
| | |
| | |
| | |
| | |
| | |
Transmissora Alianca de Energia Eletrica S/A | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Cia Cervecerias Unidas SA | | |
Cia Sud Americana de Vapores SA | | |
| | |
| | |
|
|
Embotelladora Andina SA (Preference), Class B | | |
| | |
| | |
| | |
| | |
|
| | |
Agricultural Bank of China Ltd., Class A | | |
An Hui Wenergy Co. Ltd., Class A | | |
Angang Steel Co. Ltd., Class H | | |
Anhui Conch Cement Co. Ltd., Class H | | |
Anhui Expressway Co. Ltd., Class A | | |
ANTA Sports Products Ltd. | | |
BAIC Motor Corp. Ltd., Class H (a) | | |
Bank of Beijing Co. Ltd., Class A | | |
Bank of Changsha Co. Ltd., Class A | | |
Bank of China Ltd., Class H | | |
Bank of Communications Co. Ltd., Class A | | |
Bank of Shanghai Co. Ltd., Class A | | |
Baoshan Iron & Steel Co. Ltd., Class A | | |
Beijing Enterprises Holdings Ltd. | | |
Bosideng International Holdings Ltd. | | |
BYD Electronic International Co. Ltd. | | |
CGN Power Co. Ltd., Class H (a) | | |
China CITIC Bank Corp. Ltd., Class H | | |
China Coal Energy Co. Ltd., Class H | | |
China Communications Services Corp. Ltd., Class H | | |
China Construction Bank Corp., Class H | | |
China Everbright Bank Co. Ltd., Class H | | |
| | |
China International Marine Containers Group Co. Ltd., Class A | | |
China Lesso Group Holdings Ltd. | | |
China Medical System Holdings Ltd. | | |
China Merchants Energy Shipping Co. Ltd., Class A | | |
China Merchants Port Group Co. Ltd., Class A | | |
China Merchants Port Holdings Co. Ltd. | | |
China Minsheng Banking Corp. Ltd., Class H | | |
China National Accord Medicines Corp. Ltd., Class A | | |
China National Building Material Co. Ltd., Class H | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
China National Chemical Engineering Co. Ltd., Class A | | |
China National Medicines Corp. Ltd., Class A | | |
China Petroleum & Chemical Corp., Class H | | |
China Resources Cement Holdings Ltd. | | |
China Resources Pharmaceutical Group Ltd. (a) | | |
China Resources Power Holdings Co. Ltd. | | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | | |
China Shenhua Energy Co. Ltd., Class H | | |
China South Publishing & Media Group Co. Ltd., Class A | | |
China United Network Communications Ltd., Class A | | |
China Yangtze Power Co. Ltd., Class A | | |
Chinese Universe Publishing and Media Group Co. Ltd., Class A | | |
Chongqing Changan Automobile Co. Ltd., Class A | | |
Chongqing Rural Commercial Bank Co. Ltd., Class H | | |
| | |
COSCO SHIPPING Energy Transportation Co. Ltd., Class H | | |
COSCO SHIPPING Holdings Co. Ltd., Class H | | |
COSCO SHIPPING Ports Ltd. | | |
CSG Holding Co. Ltd., Class A | | |
CSPC Pharmaceutical Group Ltd. | | |
Daqin Railway Co. Ltd., Class A | | |
Datang International Power Generation Co. Ltd., Class H | | |
Dong-E-E-Jiao Co. Ltd., Class A | | |
Dongfeng Motor Group Co. Ltd., Class H | | |
Dongguan Development Holdings Co. Ltd., Class A | | |
| | |
| | |
Foxconn Industrial Internet Co. Ltd., Class A | | |
Fujian Sunner Development Co. Ltd., Class A | | |
G-bits Network Technology Xiamen Co. Ltd., Class A | | |
GD Power Development Co. Ltd., Class A | | |
Great Wall Motor Co. Ltd., Class H | | |
Gree Electric Appliances, Inc. of Zhuhai, Class A | | |
| | |
|
|
Guangdong Baolihua New Energy Stock Co. Ltd., Class A | | |
Guangxi Guiguan Electric Power Co. Ltd., Class A | | |
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H | | |
Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A | | |
Haitian International Holdings Ltd. | | |
Heilongjiang Agriculture Co. Ltd., Class A | | |
Henan Shuanghui Investment & Development Co. Ltd., Class A | | |
Hengan International Group Co. Ltd. | | |
| | |
Hopson Development Holdings Ltd. * | | |
Huabao Flavours & Fragrances Co. Ltd., Class A | | |
Huadian Power International Corp. Ltd., Class H | | |
Huaibei Mining Holdings Co. Ltd., Class A | | |
Huapont Life Sciences Co. Ltd., Class A | | |
Huaxia Bank Co. Ltd., Class A | | |
Huaxin Cement Co. Ltd., Class H | | |
Huayu Automotive Systems Co. Ltd., Class A | | |
Hubei Jumpcan Pharmaceutical Co. Ltd., Class A | | |
Hunan Valin Steel Co. Ltd., Class A | | |
Industrial & Commercial Bank of China Ltd., Class H | | |
Inner Mongolia Dian Tou Energy Corp. Ltd., Class A | | |
Inner Mongolia ERDOS Resources Co. Ltd., Class A | | |
Inner Mongolia Yitai Coal Co. Ltd., Class B * | | |
Jiangling Motors Corp. Ltd., Class A | | |
Jiangsu Expressway Co. Ltd., Class A | | |
Jiangsu Financial Leasing Co. Ltd., Class A | | |
Jiangsu Hengli Hydraulic Co. Ltd., Class A | | |
Jiangsu Phoenix Publishing & Media Corp. Ltd., Class A | | |
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A | | |
Jiangsu Zhongtian Technology Co. Ltd., Class A | | |
Joincare Pharmaceutical Group Industry Co. Ltd., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Jointo Energy Investment Co. Ltd. Hebei, Class A | | |
Jointown Pharmaceutical Group Co. Ltd., Class A | | |
Joyoung Co. Ltd., Class A | | |
| | |
| | |
KingClean Electric Co. Ltd., Class A | | |
| | |
Kweichow Moutai Co. Ltd., Class A | | |
Lao Feng Xiang Co. Ltd., Class A | | |
| | |
Livzon Pharmaceutical Group, Inc., Class A | | |
Maanshan Iron & Steel Co. Ltd., Class H | | |
Metallurgical Corp. of China Ltd., Class A | | |
Nanjing Iron & Steel Co. Ltd., Class A | | |
New China Life Insurance Co. Ltd., Class A | | |
Ningbo Sanxing Medical Electric Co. Ltd., Class A | | |
Offshore Oil Engineering Co. Ltd., Class A | | |
PetroChina Co. Ltd., Class A | | |
Ping An Insurance Group Co. of China Ltd., Class H | | |
Postal Savings Bank of China Co. Ltd., Class A | | |
Qingdao Port International Co. Ltd., Class A | | |
Qinhuangdao Port Co. Ltd., Class A | | |
Shaanxi Coal Industry Co. Ltd., Class A | | |
Shandong Buchang Pharmaceuticals Co. Ltd., Class A | | |
Shandong Hualu Hengsheng Chemical Co. Ltd., Class A | | |
Shandong Publishing & Media Co. Ltd., Class A | | |
Shandong Weigao Group Medical Polymer Co. Ltd., Class H | | |
Shanghai International Port Group Co. Ltd., Class A | | |
Shanghai Mechanical and Electrical Industry Co. Ltd., Class A | | |
Shanghai Pharmaceuticals Holding Co. Ltd., Class H | | |
Shanghai Rural Commercial Bank Co. Ltd., Class A | | |
Shanghai Tunnel Engineering Co. Ltd., Class A | | |
Shanghai Waigaoqiao Free Trade Zone Group Co. Ltd., Class A | | |
Shanxi Coal International Energy Group Co. Ltd., Class A | | |
| | |
|
|
Shanxi Coking Coal Energy Group Co. Ltd., Class A | | |
Shanxi Lu'an Environmental Energy Development Co. Ltd., Class A | | |
Shenzhen Jinjia Group Co. Ltd., Class A | | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | | |
Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A | | |
Shenzhen Transsion Holdings Co. Ltd., Class A | | |
Sichuan Kelun Pharmaceutical Co. Ltd., Class A | | |
Sinoma International Engineering Co., Class A | | |
Sinopharm Group Co. Ltd., Class H | | |
| | |
| | |
Skyworth Digital Co. Ltd., Class A | | |
Tangshan Jidong Cement Co. Ltd., Class A | | |
TangShan Port Group Co. Ltd., Class A | | |
Tasly Pharmaceutical Group Co. Ltd., Class A | | |
Tian Di Science & Technology Co. Ltd., Class A | | |
Tianhe Chemicals Group Ltd. ‡ * | | |
Triangle Tyre Co. Ltd., Class A | | |
Wanxiang Qianchao Co. Ltd., Class A | | |
Weichai Power Co. Ltd., Class A | | |
Wuliangye Yibin Co. Ltd., Class A | | |
Xiamen C & D, Inc., Class A | | |
Xinhua Winshare Publishing and Media Co. Ltd., Class A | | |
Yangzijiang Shipbuilding Holdings Ltd. | | |
Yankuang Energy Group Co. Ltd., Class H | | |
Yintai Gold Co. Ltd., Class A | | |
| | |
Yunnan Baiyao Group Co. Ltd., Class A | | |
Yutong Bus Co. Ltd., Class A | | |
Zhejiang Conba Pharmaceutical Co. Ltd., Class A | | |
Zhejiang Expressway Co. Ltd., Class H | | |
Zhejiang Hisoar Pharmaceutical Co. Ltd., Class A | | |
Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A | | |
Zhejiang Semir Garment Co. Ltd., Class A | | |
Zhejiang Weixing New Building Materials Co. Ltd., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Zhengzhou Coal Mining Machinery Group Co. Ltd., Class A | | |
Zhongjin Gold Corp. Ltd., Class A | | |
Zhongsheng Group Holdings Ltd. | | |
Zijin Mining Group Co. Ltd., Class H | | |
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | | |
| | |
|
Bancolombia SA (Preference) | | |
Grupo Aval Acciones y Valores SA (Preference) | | |
| | |
|
| | |
Moneta Money Bank A/S (a) | | |
| | |
|
Commercial International Bank Egypt SAE | | |
|
Eurobank Ergasias Services and Holdings SA * | | |
Hellenic Telecommunications Organization SA | | |
| | |
Motor Oil Hellas Corinth Refineries SA | | |
| | |
National Bank of Greece SA * | | |
| | |
Piraeus Financial Holdings SA * | | |
| | |
|
Kingboard Laminates Holdings Ltd. | | |
|
Magyar Telekom Telecommunications plc | | |
MOL Hungarian Oil & Gas plc | | |
| | |
| | |
|
| | |
| | |
| | |
Bajaj Holdings & Investment Ltd. | | |
Bharat Petroleum Corp. Ltd. | | |
| | |
|
|
| | |
| | |
Colgate-Palmolive India Ltd. | | |
| | |
| | |
Dr Reddy's Laboratories Ltd. | | |
| | |
Glenmark Pharmaceuticals Ltd. | | |
| | |
| | |
Hindustan Petroleum Corp. Ltd. * | | |
| | |
| | |
ICICI Lombard General Insurance Co. Ltd. (a) | | |
| | |
| | |
| | |
| | |
Jindal Steel & Power Ltd. | | |
Jio Financial Services Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
Steel Authority of India Ltd. | | |
Sun Pharmaceutical Industries Ltd. | | |
Tata Consultancy Services Ltd. | | |
| | |
Tata Power Co. Ltd. (The) | | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
|
Adaro Energy Indonesia Tbk. PT | | |
Astra International Tbk. PT | | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
| | |
Charoen Pokphand Indonesia Tbk. PT * | | |
| | |
Hanjaya Mandala Sampoerna Tbk. PT | | |
Indofood CBP Sukses Makmur Tbk. PT | | |
Indofood Sukses Makmur Tbk. PT | | |
| | |
Perusahaan Gas Negara Tbk. PT | | |
Sarana Menara Nusantara Tbk. PT | | |
Sumber Alfaria Trijaya Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT | | |
Unilever Indonesia Tbk. PT | | |
| | |
| | |
| | |
| | |
|
Agility Public Warehousing Co. KSC * | | |
Humansoft Holding Co. KSC | | |
Kuwait Finance House KSCP | | |
Mobile Telecommunications Co. KSCP | | |
National Bank of Kuwait SAKP | | |
| | |
|
Astro Malaysia Holdings Bhd. | | |
| | |
| | |
Hong Leong Financial Group Bhd. | | |
| | |
| | |
| | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Arca Continental SAB de CV | | |
| | |
| | |
Coca-Cola Femsa SAB de CV | | |
Controladora AXTEL SAB de CV * | | |
El Puerto de Liverpool SAB de CV, Class C1 | | |
Fibra Uno Administracion SA de CV, REIT | | |
Fomento Economico Mexicano SAB de CV | | |
| | |
Grupo Aeroportuario del Centro Norte SAB de CV | | |
Grupo Aeroportuario del Pacifico SAB de CV, Class B | | |
Grupo Aeroportuario del Sureste SAB de CV, Class B | | |
| | |
| | |
Grupo Financiero Banorte SAB de CV, Class O | | |
| | |
Kimberly-Clark de Mexico SAB de CV, Class A | | |
Megacable Holdings SAB de CV | | |
Orbia Advance Corp. SAB de CV | | |
Promotora y Operadora de Infraestructura SAB de CV | | |
Qualitas Controladora SAB de CV | | |
| | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
Oil & Gas Development Co. Ltd. | | |
|
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
Puregold Price Club, Inc. | | |
| | |
|
Commercial Bank PSQC (The) | | |
| | |
Mesaieed Petrochemical Holding Co. | | |
| | |
Qatar Electricity & Water Co. QSC | | |
| | |
Qatar Gas Transport Co. Ltd. | | |
Qatar International Islamic Bank QSC | | |
| | |
| | |
| | |
|
| | |
|
| | |
Federal Grid Co. - Rosseti PJSC ‡ * | | |
Federal Grid Co. - ROSSETI PUBLIC JOINT-STOCK COMPANY ‡ * | | |
| | |
| | |
| | |
| | |
Magnitogorsk Iron & Steel Works PJSC ‡ * | | |
MMC Norilsk Nickel PJSC ‡ * | | |
Mobile TeleSystems PJSC ‡ | | |
Novolipetsk Steel PJSC ‡ * | | |
| | |
| | |
| | |
Sberbank of Russia PJSC ‡ | | |
| | |
| | |
Surgutneftegas PJSC (Preference) ‡ | | |
| | |
| | |
| | |
|
Abdullah Al Othaim Markets Co. | | |
| | |
| | |
|
|
| | |
| | |
Arabian Internet & Communications Services Co. | | |
Dr Sulaiman Al Habib Medical Services Group Co. | | |
| | |
| | |
Mouwasat Medical Services Co. | | |
| | |
| | |
Sahara International Petrochemical Co. | | |
Saudi Airlines Catering Co. | | |
Saudi Arabian Mining Co. * | | |
Saudi Arabian Oil Co. (a) | | |
| | |
| | |
Saudi Investment Bank (The) | | |
| | |
| | |
| | |
|
African Rainbow Minerals Ltd. | | |
Anglo American Platinum Ltd. | | |
Aspen Pharmacare Holdings Ltd. | | |
| | |
| | |
| | |
Impala Platinum Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Catcher Technology Co. Ltd. | | |
Cheng Shin Rubber Industry Co. Ltd. | | |
Chicony Electronics Co. Ltd. | | |
| | |
| | |
| | |
Chunghwa Telecom Co. Ltd. | | |
CTBC Financial Holding Co. Ltd. | | |
E.Sun Financial Holding Co. Ltd. | | |
| | |
| | |
Evergreen Marine Corp. Taiwan Ltd. | | |
Far Eastern New Century Corp. | | |
Far EasTone Telecommunications Co. Ltd. | | |
Feng TAY Enterprise Co. Ltd. | | |
First Financial Holding Co. Ltd. | | |
Formosa Chemicals & Fibre Corp. | | |
| | |
Fubon Financial Holding Co. Ltd. | | |
| | |
Largan Precision Co. Ltd. | | |
| | |
Mega Financial Holding Co. Ltd. | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
Novatek Microelectronics Corp. | | |
| | |
President Chain Store Corp. | | |
SinoPac Financial Holdings Co. Ltd. | | |
Taiwan Cooperative Financial Holding Co. Ltd. | | |
Taiwan Fertilizer Co. Ltd. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
Uni-President Enterprises Corp. | | |
Yang Ming Marine Transport Corp. | | |
Yuanta Financial Holding Co. Ltd. | | |
| | |
| | |
|
Advanced Info Service PCL | | |
| | |
Bangkok Dusit Medical Services PCL, Class F | | |
| | |
| | |
| | |
|
|
Central Retail Corp. PCL, NVDR | | |
| | |
| | |
Digital Telecommunications Infrastructure Fund, Class F | | |
Electricity Generating PCL | | |
| | |
Intouch Holdings PCL, NVDR | | |
| | |
Minor International PCL, NVDR | | |
| | |
PTT Exploration & Production PCL | | |
| | |
| | |
| | |
Thai Union Group PCL, Class F | | |
TMBThanachart Bank PCL, NVDR | | |
| | |
| | |
|
AG Anadolu Grubu Holding A/S | | |
| | |
| | |
| | |
| | |
Alfa Solar Enerji Sanayi ve Ticaret A/S | | |
Anadolu Efes Biracilik ve Malt Sanayii A/S | | |
Aselsan Elektronik Sanayi ve Ticaret A/S | | |
| | |
| | |
BIM Birlesik Magazalar A/S | | |
Cimsa Cimento Sanayi ve Ticaret A/S | | |
| | |
Dogan Sirketler Grubu Holding A/S | | |
Dogus Otomotiv Servis ve Ticaret A/S | | |
EGE Endustri ve Ticaret A/S | | |
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret A/S | | |
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S, REIT | | |
| | |
Enka Insaat ve Sanayi A/S | | |
| | |
Haci Omer Sabanci Holding A/S | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Is Yatirim Menkul Degerler A/S | | |
Kimteks Poliuretan Sanayi ve Ticaret A/S | | |
| | |
Kontrolmatik Enerji ve Muhendislik A/S | | |
Koza Altin Isletmeleri A/S | | |
Koza Anadolu Metal Madencilik Isletmeleri A/S * | | |
Mavi Giyim Sanayi ve Ticaret A/S, Class B (a) | | |
| | |
MLP Saglik Hizmetleri A/S * (a) | | |
| | |
ODAS Elektrik Uretim ve Sanayi Ticaret A/S * | | |
Otokar Otomotiv ve Savunma Sanayi AS * | | |
Oyak Cimento Fabrikalari A/S * | | |
Pegasus Hava Tasimaciligi A/S * | | |
| | |
Sok Marketler Ticaret A/S | | |
| | |
Tofas Turk Otomobil Fabrikasi A/S | | |
Torunlar Gayrimenkul Yatirim Ortakligi A/S, REIT | | |
| | |
Turk Telekomunikasyon A/S * | | |
Turk Traktor ve Ziraat Makineleri A/S | | |
Turkcell Iletisim Hizmetleri A/S * | | |
Turkiye Is Bankasi A/S, Class C | | |
Turkiye Petrol Rafinerileri A/S | | |
Turkiye Sise ve Cam Fabrikalari A/S | | |
Ulker Biskuvi Sanayi A/S * | | |
Yapi ve Kredi Bankasi A/S | | |
Zorlu Enerji Elektrik Uretim A/S * | | |
| | |
United Arab Emirates — 2.4% |
Abu Dhabi Commercial Bank PJSC | | |
Abu Dhabi Islamic Bank PJSC | | |
Abu Dhabi Ports Co. PJSC * | | |
| | |
| | |
| | |
Emirates Telecommunications Group Co. PJSC | | |
| | |
National Marine Dredging Co. * | | |
| | |
| | |
| | |
|
|
| | |
Total Common Stocks
(Cost $271,012,781) | | |
Total Investments — 99.8%
(Cost $271,012,781) | | |
Other Assets Less Liabilities — 0.2% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| |
| Non-Voting Depositary Receipt |
| Public Joint Stock Company |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Limited liability company |
| Real Estate Investment Trust |
| Value determined using significant unobservable inputs. |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
Oil, Gas & Consumable Fuels | |
| |
Wireless Telecommunication Services | |
| |
| |
Diversified Telecommunication Services | |
| |
| |
| |
| |
Transportation Infrastructure | |
Independent Power and Renewable Electricity Producers | |
Consumer Staples Distribution & Retail | |
| |
| |
| |
| |
Health Care Providers & Services | |
| |
Textiles, Apparel & Luxury Goods | |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
MSCI Emerging Markets E-Mini Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| Morgan Stanley Capital International |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Fortescue Metals Group Ltd. | | |
| | |
| | |
| | |
Harvey Norman Holdings Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pilbara Minerals Ltd. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Treasury Wine Estates Ltd. | | |
| | |
| | |
| | |
|
|
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
Yancoal Australia Ltd. (a) | | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
Budweiser Brewing Co. APAC Ltd. (b) | | |
Chow Tai Fook Jewellery Group Ltd. | | |
| | |
SITC International Holdings Co. Ltd. | | |
Wilmar International Ltd. | | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Unibail-Rodamco-Westfield, REIT * | | |
| | |
| | |
| | |
|
Bayerische Motoren Werke AG | | |
| | |
Deutsche Telekom AG (Registered) | | |
| | |
Fresenius Medical Care AG & Co. KGaA | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telefonica Deutschland Holding AG | | |
| | |
|
| | |
| | |
CK Infrastructure Holdings Ltd. | | |
| | |
|
|
| | |
Hong Kong & China Gas Co. Ltd. | | |
Hutchison Port Holdings Trust | | |
| | |
New World Development Co. Ltd. | | |
Orient Overseas International Ltd. | | |
| | |
Power Assets Holdings Ltd. | | |
Sun Hung Kai Properties Ltd. | | |
Swire Pacific Ltd., Class A | | |
| | |
Wharf Real Estate Investment Co. Ltd. | | |
Yue Yuen Industrial Holdings Ltd. | | |
| | |
|
| | |
|
| | |
|
| | |
Assicurazioni Generali SpA | | |
| | |
| | |
| | |
Infrastrutture Wireless Italiane SpA (b) | | |
| | |
| | |
Recordati Industria Chimica e Farmaceutica SpA | | |
Terna - Rete Elettrica Nazionale | | |
| | |
| | |
|
Activia Properties, Inc., REIT | | |
Advance Residence Investment Corp., REIT | | |
| | |
| | |
AEON REIT Investment Corp., REIT | | |
| | |
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
Canon Marketing Japan, Inc. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
Chubu Electric Power Co., Inc. | | |
Chugai Pharmaceutical Co. Ltd. | | |
| | |
Cosmo Energy Holdings Co. Ltd. | | |
Dai Nippon Printing Co. Ltd. | | |
Daito Trust Construction Co. Ltd. | | |
Daiwa House REIT Investment Corp., REIT | | |
Daiwa Securities Group, Inc. | | |
| | |
| | |
Electric Power Development Co. Ltd. | | |
| | |
Fuji Media Holdings, Inc. | | |
| | |
Fukuoka Financial Group, Inc. | | |
Hachijuni Bank Ltd. (The) | | |
| | |
| | |
| | |
| | |
Iida Group Holdings Co. Ltd. | | |
| | |
Invincible Investment Corp., REIT | | |
| | |
| | |
Japan Metropolitan Fund Invest, REIT | | |
Japan Post Holdings Co. Ltd. | | |
Japan Post Insurance Co. Ltd. | | |
Japan Real Estate Investment Corp., REIT | | |
| | |
| | |
| | |
| | |
Kansai Electric Power Co., Inc. (The) | | |
Kawasaki Kisen Kaisha Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Kyushu Electric Power Co., Inc. * | | |
| | |
|
|
| | |
| | |
| | |
| | |
Mebuki Financial Group, Inc. | | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
Mitsubishi Gas Chemical Co., Inc. | | |
Mitsubishi HC Capital, Inc. | | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
Mitsui Mining & Smelting Co. Ltd. | | |
Morinaga Milk Industry Co. Ltd. | | |
MS&AD Insurance Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Nippon Telegraph & Telephone Corp. | | |
| | |
Nisshin Seifun Group, Inc. | | |
Nissin Foods Holdings Co. Ltd. | | |
| | |
| | |
| | |
Nomura Real Estate Holdings, Inc. | | |
Nomura Real Estate Master Fund, Inc., REIT | | |
| | |
Ono Pharmaceutical Co. Ltd. | | |
Open House Group Co. Ltd. | | |
| | |
| | |
| | |
| | |
Rohto Pharmaceutical Co. Ltd. | | |
| | |
Santen Pharmaceutical Co. Ltd. | | |
| | |
Sawai Group Holdings Co. Ltd. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
Sekisui Chemical Co. Ltd. | | |
| | |
Sekisui House REIT, Inc., REIT | | |
| | |
| | |
Ship Healthcare Holdings, Inc. | | |
Skylark Holdings Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Sumitomo Chemical Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
Suntory Beverage & Food Ltd. | | |
| | |
Taisho Pharmaceutical Holdings Co. Ltd. | | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
| | |
| | |
Tohoku Electric Power Co., Inc. | | |
| | |
| | |
| | |
Tokyu Fudosan Holdings Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
United Urban Investment Corp., REIT | | |
| | |
| | |
| | |
Yamaguchi Financial Group, Inc. | | |
| | |
Yokohama Rubber Co. Ltd. (The) | | |
| | |
| | |
| | |
|
|
Hikma Pharmaceuticals plc | | |
|
| | |
|
| | |
|
ABN AMRO Bank NV, CVA (b) | | |
| | |
| | |
BE Semiconductor Industries NV | | |
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Fisher & Paykel Healthcare Corp. Ltd. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
CapitaLand Ascendas, REIT | | |
CapitaLand Integrated Commercial Trust, REIT | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Jardine Cycle & Carriage Ltd. | | |
| | |
| | |
Mapletree Logistics Trust, REIT | | |
Mapletree Pan Asia Commercial Trust, REIT | | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
| | |
Singapore Telecommunications Ltd. | | |
| | |
| | |
| | |
| | |
|
| | |
|
Daewoo Engineering & Construction Co. Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
GS Engineering & Construction Corp. | | |
| | |
| | |
Hana Financial Group, Inc. | | |
| | |
Hanwha Aerospace Co. Ltd. | | |
| | |
Hanwha Life Insurance Co. Ltd. * | | |
HD Hyundai Infracore Co. Ltd. | | |
| | |
Hyundai Department Store Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
Korea Investment Holdings Co. Ltd. | | |
Korean Air Lines Co. Ltd. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Mirae Asset Securities Co. Ltd. | | |
| | |
NH Investment & Securities Co. Ltd. | | |
| | |
| | |
| | |
Posco International Corp. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Engineering Co. Ltd. * | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Securities Co. Ltd. | | |
| | |
| | |
| | |
Woori Financial Group, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Industria de Diseno Textil SA | | |
Merlin Properties Socimi SA, REIT | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Fastighets AB Balder, Class B * | | |
| | |
H & M Hennes & Mauritz AB, Class B (a) | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
Kuehne + Nagel International AG (Registered) | | |
| | |
PSP Swiss Property AG (Registered) | | |
| | |
Sonova Holding AG (Registered) | | |
Swiss Prime Site AG (Registered) | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Associated British Foods plc | | |
| | |
Auto Trader Group plc (b) | | |
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
British American Tobacco plc | | |
British Land Co. plc (The), REIT | | |
| | |
| | |
| | |
| | |
CK Hutchison Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
United Kingdom — continued |
| | |
| | |
InterContinental Hotels Group plc | | |
International Consolidated Airlines Group SA * | | |
| | |
| | |
| | |
Land Securities Group plc, REIT | | |
Legal & General Group plc | | |
| | |
| | |
| | |
| | |
| | |
Phoenix Group Holdings plc | | |
| | |
| | |
Rolls-Royce Holdings plc * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
UNITE Group plc (The), REIT | | |
United Utilities Group plc | | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
| | |
| | |
| | |
Total Common Stocks
(Cost $390,344,021) | | |
Short-Term Investments — 0.7% |
Investment Companies — 0.1% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (c) (d)(Cost $424,031) | | |
Investment of Cash Collateral from Securities Loaned — 0.6% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (c) (d) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (c) (d) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $2,124,162) | | |
Total Short-Term Investments
(Cost $2,548,193) | | |
Total Investments — 99.9%
(Cost $392,892,214) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Certificaten Van Aandelen (Dutch Certificate) |
| |
| Real Estate Investment Trust |
| |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $2,021,253. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
Diversified Telecommunication Services | |
| |
Consumer Staples Distribution & Retail | |
| |
Real Estate Management & Development | |
| |
Trading Companies & Distributors | |
| |
| |
| |
| |
Semiconductors & Semiconductor Equipment | |
| |
Wireless Telecommunication Services | |
Technology Hardware, Storage & Peripherals | |
| |
Health Care Equipment & Supplies | |
| |
Construction & Engineering | |
| |
| |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
Electronic Equipment, Instruments & Components | |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return International Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
| |
| Europe, Australasia and Far East |
| Morgan Stanley Capital International |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.8% |
| | |
| | |
| | |
Automobiles & Parts — 0.6% |
| | |
| | |
| | |
|
| | |
Citizens Financial Group, Inc. | | |
Discover Financial Services | | |
| | |
First Citizens BancShares, Inc., Class A | | |
Huntington Bancshares, Inc. | | |
| | |
New York Community Bancorp, Inc. | | |
Popular, Inc. (Puerto Rico) | | |
| | |
| | |
| | |
| | |
|
Boston Beer Co., Inc. (The), Class A * | | |
Brown-Forman Corp., Class B (a) | | |
| | |
| | |
Constellation Brands, Inc., Class A | | |
| | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
|
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
LyondellBasell Industries NV, Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Construction & Materials — 1.7% |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
|
Grand Canyon Education, Inc. * | | |
| | |
Service Corp. International | | |
| | |
|
American Electric Power Co., Inc. | | |
| | |
Clearway Energy, Inc., Class C | | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. (a) | | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
Electronic & Electrical Equipment — 0.8% |
| | |
| | |
| | |
| | |
| | |
Finance & Credit Services — 0.5% |
| | |
FactSet Research Systems, Inc. | | |
| | |
| | |
| | |
|
Archer-Daniels-Midland Co. | | |
| | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
Mondelez International, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Gas, Water & Multi-utilities — 3.0% |
| | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
|
Gas, Water & Multi-utilities — continued |
| | |
| | |
| | |
| | |
| | |
General Industrials — 2.0% |
| | |
| | |
Honeywell International, Inc. | | |
Illinois Tool Works, Inc. | | |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
Health Care Providers — 2.6% |
| | |
| | |
| | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
Household Goods & Home Construction — 2.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industrial Engineering — 0.6% |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Industrial Materials — 0.2% |
| | |
Industrial Metals & Mining — 2.6% |
| | |
| | |
| | |
Reliance Steel & Aluminum Co. | | |
Southern Copper Corp. (Mexico) | | |
| | |
| | |
United States Steel Corp. (a) | | |
| | |
Industrial Support Services — 2.4% |
| | |
Booz Allen Hamilton Holding Corp. | | |
Capital One Financial Corp. | | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
Industrial Transportation — 1.4% |
Allison Transmission Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
Investment Banking & Brokerage Services — 1.2% |
Ameriprise Financial, Inc. | | |
Jefferies Financial Group, Inc. | | |
| | |
Raymond James Financial, Inc. | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
|
| | |
| | |
|
Leisure Goods — continued |
| | |
| | |
| | |
|
| | |
| | |
| | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
| | |
| | |
|
Interpublic Group of Cos., Inc. (The) | | |
Nexstar Media Group, Inc. | | |
| | |
Medical Equipment & Services — 3.5% |
| | |
| | |
| | |
| | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
| | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
Mortgage Real Estate Investment Trusts — 0.4% |
| | |
Starwood Property Trust, Inc. (a) | | |
| | |
Non-life Insurance — 3.1% |
American Financial Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
Fidelity National Financial, Inc. | | |
Hanover Insurance Group, Inc. (The) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Non-life Insurance — continued |
Hartford Financial Services Group, Inc. (The) | | |
Marsh & McLennan Cos., Inc. | | |
Old Republic International Corp. | | |
| | |
Reinsurance Group of America, Inc. | | |
| | |
| | |
Non-Renewable Energy — 6.1% |
| | |
| | |
Chesapeake Energy Corp. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Occidental Petroleum Corp. | | |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
| | |
Williams Cos., Inc. (The) | | |
| | |
Personal Care, Drug & Grocery Stores — 5.1% |
Albertsons Cos., Inc., Class A | | |
Casey's General Stores, Inc. | | |
| | |
Church & Dwight Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Personal Care, Drug & Grocery Stores — continued |
Performance Food Group Co. * | | |
Procter & Gamble Co. (The) | | |
Spectrum Brands Holdings, Inc. | | |
| | |
|
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 4.8% |
| | |
| | |
| | |
| | |
| | |
Fortrea Holdings, Inc. * (a) | | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Precious Metals & Mining — 0.2% |
| | |
Real Estate Investment & Services — 1.2% |
CBRE Group, Inc., Class A * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
Real Estate Investment Trusts — 8.0% |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
EastGroup Properties, Inc. | | |
| | |
| | |
First Industrial Realty Trust, Inc. | | |
Gaming and Leisure Properties, Inc. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Real Estate Investment Trusts — continued |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
Lamar Advertising Co., Class A | | |
Mid-America Apartment Communities, Inc. | | |
| | |
Omega Healthcare Investors, Inc. (a) | | |
| | |
| | |
| | |
Simon Property Group, Inc. | | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Dick's Sporting Goods, Inc. (a) | | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Software & Computer Services — 3.8% |
Alphabet, Inc., Class A * | | |
| | |
CACI International, Inc., Class A * | | |
Cadence Design Systems, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Dolby Laboratories, Inc., Class A | | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
|
Software & Computer Services — continued |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
Technology Hardware & Equipment — 3.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telecommunications Equipment — 2.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telecommunications Service Providers — 3.5% |
| | |
| | |
Charter Communications, Inc., Class A * | | |
| | |
DISH Network Corp., Class A * (a) | | |
Frontier Communications Parent, Inc. * | | |
Iridium Communications, Inc. | | |
Liberty Broadband Corp., Class C * | | |
| | |
| | |
Verizon Communications, Inc. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
Philip Morris International, Inc. | | |
| | |
|
| | |
| | |
| | |
Waste & Disposal Services — 1.2% |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $413,779,874) | | |
Short-Term Investments — 5.0% |
Investment Companies — 0.1% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $306,480) | | |
Investment of Cash Collateral from Securities Loaned — 4.9% |
JPMorgan Securities Lending Money Market Fund Class Agency SL Shares, 5.53% (b) (c) | | |
| | |
|
|
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $20,440,070) | | |
Total Short-Term Investments
(Cost $20,746,550) | | |
Total Investments — 104.8%
(Cost $434,526,424) | | |
Liabilities in Excess of Other Assets — (4.8)% | | |
| | |
Percentages indicated are based on net assets. |
| Value determined using significant unobservable inputs. |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $20,157,750. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.1% |
| | |
Automobiles & Parts — 0.6% |
| | |
| | |
| | |
| | |
| | |
|
Citizens Financial Group, Inc. | | |
| | |
Discover Financial Services | | |
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
Popular, Inc. (Puerto Rico) | | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
|
Brown-Forman Corp., Class B (a) | | |
| | |
Molson Coors Beverage Co., Class B | | |
| | |
|
| | |
| | |
| | |
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
Construction & Materials — 2.2% |
| | |
Builders FirstSource, Inc. * | | |
| | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Service Corp. International | | |
| | |
|
| | |
| | |
Brookfield Renewable Corp. | | |
Clearway Energy, Inc., Class C (a) | | |
| | |
Consolidated Edison, Inc. | | |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. (a) | | |
| | |
| | |
| | |
| | |
Pinnacle West Capital Corp. | | |
| | |
Public Service Enterprise Group, Inc. | | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Electronic & Electrical Equipment — 1.7% |
| | |
| | |
| | |
| | |
| | |
Keysight Technologies, Inc. * | | |
| | |
| | |
Finance & Credit Services — 0.5% |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Gas, Water & Multi-utilities — 3.0% |
| | |
American Water Works Co., Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
General Industrials — 1.8% |
| | |
| | |
| | |
|
General Industrials — continued |
| | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
Health Care Providers — 3.4% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
Molina Healthcare, Inc. * | | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
Veeva Systems, Inc., Class A * | | |
| | |
Household Goods & Home Construction — 2.0% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industrial Engineering — 1.8% |
| | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Industrial Materials — 0.8% |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Industrial Metals & Mining — 2.8% |
| | |
| | |
| | |
Reliance Steel & Aluminum Co. | | |
| | |
| | |
United States Steel Corp. (a) | | |
| | |
Industrial Support Services — 1.6% |
| | |
Booz Allen Hamilton Holding Corp. | | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Industrial Transportation — 1.7% |
Allison Transmission Holdings, Inc. | | |
Expeditors International of Washington, Inc. | | |
| | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
Investment Banking & Brokerage Services — 1.9% |
Ameriprise Financial, Inc. | | |
| | |
Jefferies Financial Group, Inc. | | |
LPL Financial Holdings, Inc. | | |
Raymond James Financial, Inc. | | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
|
| | |
| | |
| | |
| | |
|
Leisure Goods — continued |
| | |
Thor Industries, Inc. (a) | | |
| | |
|
| | |
| | |
Principal Financial Group, Inc. | | |
| | |
| | |
|
Interpublic Group of Cos., Inc. (The) | | |
Liberty Media Corp-Liberty Live, Class A * | | |
Liberty Media Corp-Liberty SiriusXM, Class A * | | |
Nexstar Media Group, Inc. | | |
| | |
| | |
Medical Equipment & Services — 4.5% |
Agilent Technologies, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Integra LifeSciences Holdings Corp. * | | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
West Pharmaceutical Services, Inc. | | |
| | |
Mortgage Real Estate Investment Trusts — 0.7% |
Annaly Capital Management, Inc. | | |
| | |
Starwood Property Trust, Inc. (a) | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Non-life Insurance — 3.1% |
American Financial Group, Inc. | | |
Arch Capital Group Ltd. * | | |
| | |
| | |
Axis Capital Holdings Ltd. | | |
| | |
| | |
| | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Hanover Insurance Group, Inc. (The) | | |
Hartford Financial Services Group, Inc. (The) | | |
Old Republic International Corp. | | |
Reinsurance Group of America, Inc. | | |
White Mountains Insurance Group Ltd. | | |
| | |
Non-Renewable Energy — 7.1% |
| | |
| | |
| | |
| | |
Chesapeake Energy Corp. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Range Resources Corp. (a) | | |
| | |
| | |
Williams Cos., Inc. (The) | | |
| | |
Personal Care, Drug & Grocery Stores — 3.6% |
Albertsons Cos., Inc., Class A | | |
Casey's General Stores, Inc. | | |
| | |
Church & Dwight Co., Inc. | | |
| | |
|
Personal Care, Drug & Grocery Stores — continued |
| | |
| | |
Grocery Outlet Holding Corp. * | | |
| | |
Olaplex Holdings, Inc. * (a) | | |
Performance Food Group Co. * | | |
Reynolds Consumer Products, Inc. | | |
Spectrum Brands Holdings, Inc. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 2.7% |
| | |
| | |
| | |
Fortrea Holdings, Inc. * (a) | | |
| | |
Jazz Pharmaceuticals plc * | | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
Neurocrine Biosciences, Inc. * | | |
| | |
United Therapeutics Corp. * | | |
| | |
| | |
Precious Metals & Mining — 0.2% |
SSR Mining, Inc. (Canada) (a) | | |
Real Estate Investment & Services — 1.3% |
CBRE Group, Inc., Class A * | | |
| | |
Jones Lang LaSalle, Inc. * | | |
Zillow Group, Inc., Class C * | | |
| | |
Real Estate Investment Trusts — 9.4% |
American Homes 4 Rent, Class A | | |
AvalonBay Communities, Inc. | | |
Brixmor Property Group, Inc. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Real Estate Investment Trusts — continued |
| | |
EastGroup Properties, Inc. | | |
| | |
First Industrial Realty Trust, Inc. | | |
Gaming and Leisure Properties, Inc. | | |
Highwoods Properties, Inc. (a) | | |
Host Hotels & Resorts, Inc. | | |
| | |
| | |
Lamar Advertising Co., Class A (a) | | |
Mid-America Apartment Communities, Inc. | | |
| | |
Omega Healthcare Investors, Inc. (a) | | |
Park Hotels & Resorts, Inc. | | |
| | |
| | |
Rexford Industrial Realty, Inc. | | |
Simon Property Group, Inc. | | |
Spirit Realty Capital, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Dick's Sporting Goods, Inc. (a) | | |
| | |
| | |
Penske Automotive Group, Inc. (a) | | |
| | |
| | |
| | |
| | |
Software & Computer Services — 4.3% |
Akamai Technologies, Inc. * | | |
| | |
| | |
CACI International, Inc., Class A * | | |
| | |
|
Software & Computer Services — continued |
| | |
Dolby Laboratories, Inc., Class A | | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
Manhattan Associates, Inc. * | | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
Tyler Technologies, Inc. * | | |
| | |
Technology Hardware & Equipment — 4.2% |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Telecommunications Equipment — 1.3% |
| | |
| | |
Lumentum Holdings, Inc. * (a) | | |
| | |
| | |
| | |
Telecommunications Service Providers — 1.7% |
| | |
DISH Network Corp., Class A * (a) | | |
Frontier Communications Parent, Inc. * (a) | | |
Iridium Communications, Inc. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Telecommunications Service Providers — continued |
Liberty Broadband Corp., Class C * | | |
| | |
| | |
|
| | |
Choice Hotels International, Inc. (a) | | |
| | |
MGM Resorts International | | |
| | |
| | |
| | |
| | |
Waste & Disposal Services — 0.9% |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $328,157,718) | | |
Short-Term Investments — 8.6% |
Investment Companies — 0.1% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $280,906) | | |
| | |
|
Investment of Cash Collateral from Securities Loaned — 8.5% |
JPMorgan Securities Lending Money Market Fund Class Agency SL Shares, 5.53% (b) (c) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $26,283,711) | | |
Total Short-Term Investments
(Cost $26,564,617) | | |
Total Investments — 108.4%
(Cost $354,722,335) | | |
Liabilities in Excess of Other Assets — (8.4)% | | |
| | |
Percentages indicated are based on net assets. |
| Value determined using significant unobservable inputs. |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $25,944,054. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
S&P MidCap 400 E-Mini Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.1% |
| | |
National Presto Industries, Inc. | | |
| | |
Automobiles & Parts — 0.2% |
| | |
| | |
| | |
|
| | |
| | |
Atlantic Union Bankshares Corp. (a) | | |
| | |
| | |
| | |
Bank of NT Butterfield & Son Ltd. (The) (Bermuda) | | |
| | |
| | |
Capital City Bank Group, Inc. | | |
| | |
| | |
Community Trust Bancorp, Inc. | | |
Enterprise Financial Services Corp. | | |
First BanCorp (Puerto Rico) | | |
| | |
First Commonwealth Financial Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
International Bancshares Corp. | | |
| | |
| | |
Northwest Bancshares, Inc. | | |
OceanFirst Financial Corp. | | |
OFG Bancorp (Puerto Rico) | | |
| | |
| | |
| | |
Republic Bancorp, Inc., Class A | | |
| | |
|
|
Simmons First National Corp., Class A | | |
| | |
| | |
| | |
| | |
United Community Banks, Inc. | | |
| | |
| | |
| | |
| | |
|
Coca-Cola Consolidated, Inc. | | |
Duckhorn Portfolio, Inc. (The) * | | |
MGP Ingredients, Inc. (a) | | |
National Beverage Corp. * | | |
| | |
Vita Coco Co., Inc. (The) * (a) | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Rayonier Advanced Materials, Inc. * | | |
Sensient Technologies Corp. | | |
| | |
| | |
| | |
Construction & Materials — 2.1% |
| | |
BlueLinx Holdings, Inc. * | | |
Comfort Systems USA, Inc. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Construction & Materials — continued |
| | |
Installed Building Products, Inc. | | |
Masonite International Corp. * | | |
Mueller Water Products, Inc., Class A | | |
| | |
Quanex Building Products Corp. | | |
Simpson Manufacturing Co., Inc. | | |
Sterling Infrastructure, Inc. * | | |
| | |
|
| | |
| | |
Laureate Education, Inc., Class A | | |
| | |
| | |
Strategic Education, Inc. | | |
| | |
| | |
|
| | |
| | |
Northwestern Energy Group, Inc. | | |
Ormat Technologies, Inc. (a) | | |
| | |
Portland General Electric Co. | | |
| | |
Electronic & Electrical Equipment — 1.3% |
| | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
Finance & Credit Services — 1.9% |
| | |
Encore Capital Group, Inc. * | | |
Enova International, Inc. * | | |
Federal Agricultural Mortgage Corp., Class C | | |
| | |
| | |
| | |
| | |
|
Finance & Credit Services — continued |
| | |
PennyMac Financial Services, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
Cal-Maine Foods, Inc. (a) | | |
Fresh Del Monte Produce, Inc. | | |
| | |
| | |
| | |
| | |
John B Sanfilippo & Son, Inc. | | |
| | |
| | |
Nature's Sunshine Products, Inc. * | | |
Simply Good Foods Co. (The) * | | |
| | |
| | |
| | |
USANA Health Sciences, Inc. * | | |
| | |
| | |
Gas, Water & Multi-utilities — 3.4% |
American States Water Co. | | |
Aris Water Solutions, Inc., Class A | | |
| | |
| | |
Brookfield Infrastructure Corp., Class A (Canada) (a) | | |
California Water Service Group | | |
Chesapeake Utilities Corp. | | |
Excelerate Energy, Inc., Class A | | |
| | |
New Jersey Resources Corp. | | |
Northwest Natural Holding Co. | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
General Industrials — 1.4% |
| | |
| | |
| | |
| | |
| | |
Kronos Worldwide, Inc. (a) | | |
| | |
| | |
Standex International Corp. | | |
| | |
| | |
Health Care Providers — 2.7% |
| | |
Apollo Medical Holdings, Inc. * | | |
Computer Programs and Systems, Inc. * | | |
| | |
| | |
Healthcare Services Group, Inc. | | |
| | |
NextGen Healthcare, Inc. * (a) | | |
| | |
Option Care Health, Inc. * | | |
Pennant Group, Inc. (The) * | | |
| | |
Select Medical Holdings Corp. | | |
Surgery Partners, Inc. * (a) | | |
US Physical Therapy, Inc. (a) | | |
| | |
Household Goods & Home Construction — 2.9% |
| | |
Central Garden & Pet Co., Class A * | | |
Century Communities, Inc. | | |
CompX International, Inc. | | |
Ethan Allen Interiors, Inc. (a) | | |
Green Brick Partners, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Household Goods & Home Construction — continued |
| | |
| | |
Taylor Morrison Home Corp. * | | |
| | |
| | |
Industrial Engineering — 1.0% |
Albany International Corp., Class A | | |
| | |
| | |
| | |
Franklin Electric Co., Inc. | | |
| | |
| | |
| | |
| | |
Industrial Materials — 2.0% |
| | |
| | |
| | |
| | |
| | |
Minerals Technologies, Inc. | | |
| | |
| | |
| | |
| | |
Industrial Metals & Mining — 3.5% |
Carpenter Technology Corp. | | |
| | |
Compass Minerals International, Inc. (a) | | |
| | |
GrafTech International Ltd. | | |
Haynes International, Inc. | | |
| | |
Mueller Industries, Inc. (a) | | |
| | |
Piedmont Lithium, Inc. * (a) | | |
| | |
Schnitzer Steel Industries, Inc., Class A | | |
| | |
Uranium Energy Corp. * (a) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Industrial Metals & Mining — continued |
US Silica Holdings, Inc. * | | |
Worthington Industries, Inc. | | |
| | |
Industrial Support Services — 2.4% |
| | |
Applied Industrial Technologies, Inc. | | |
| | |
CoreCivic, Inc., REIT * (a) | | |
| | |
Cross Country Healthcare, Inc. * | | |
Donnelley Financial Solutions, Inc. * | | |
| | |
EVERTEC, Inc. (Puerto Rico) | | |
ExlService Holdings, Inc. * | | |
Forrester Research, Inc. * | | |
Heidrick & Struggles International, Inc. | | |
| | |
| | |
| | |
| | |
Resources Connection, Inc. | | |
Target Hospitality Corp. * (a) | | |
| | |
| | |
| | |
| | |
Industrial Transportation — 3.6% |
| | |
Ardmore Shipping Corp. (Ireland) | | |
Costamare, Inc. (Monaco) (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Genco Shipping & Trading Ltd. | | |
Hub Group, Inc., Class A * | | |
International Seaways, Inc. | | |
| | |
| | |
Nordic American Tankers Ltd. | | |
Scorpio Tankers, Inc. (Monaco) | | |
| | |
|
Industrial Transportation — continued |
Teekay Tankers Ltd., Class A (Canada) | | |
Textainer Group Holdings Ltd. (China) | | |
| | |
| | |
| | |
Investment Banking & Brokerage Services — 1.2% |
Artisan Partners Asset Management, Inc., Class A (a) | | |
| | |
Brightsphere Investment Group, Inc. | | |
| | |
| | |
Hamilton Lane, Inc., Class A | | |
Moelis & Co., Class A (a) | | |
| | |
Victory Capital Holdings, Inc., Class A | | |
Virtus Investment Partners, Inc. | | |
| | |
| | |
|
Camping World Holdings, Inc., Class A (a) | | |
Fox Factory Holding Corp. * | | |
| | |
Smith & Wesson Brands, Inc. (a) | | |
| | |
Winnebago Industries, Inc. | | |
| | |
|
American Equity Investment Life Holding Co. | | |
CNO Financial Group, Inc. | | |
Genworth Financial, Inc., Class A * | | |
Jackson Financial, Inc., Class A | | |
National Western Life Group, Inc., Class A | | |
| | |
|
| | |
| | |
| | |
| | |
Medical Equipment & Services — 2.9% |
| | |
Anika Therapeutics, Inc. * | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Medical Equipment & Services — continued |
| | |
| | |
| | |
| | |
Fulgent Genetics, Inc. * (a) | | |
| | |
| | |
Lantheus Holdings, Inc. * | | |
Merit Medical Systems, Inc. * | | |
| | |
OraSure Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mortgage Real Estate Investment Trusts — 1.9% |
Apollo Commercial Real Estate Finance, Inc. (a) | | |
Arbor Realty Trust, Inc. (a) | | |
| | |
Ellington Financial, Inc. (a) | | |
KKR Real Estate Finance Trust, Inc. | | |
| | |
| | |
New York Mortgage Trust, Inc. | | |
PennyMac Mortgage Investment Trust (a) | | |
| | |
| | |
TPG RE Finance Trust, Inc. | | |
Two Harbors Investment Corp. (a) | | |
| | |
Nonequity Investment Instruments — 0.0% ^ |
| | |
| | |
| | |
Non-life Insurance — 1.2% |
| | |
| | |
Horace Mann Educators Corp. | | |
NMI Holdings, Inc., Class A * | | |
| | |
|
Non-life Insurance — continued |
Safety Insurance Group, Inc. | | |
Selective Insurance Group, Inc. | | |
Stewart Information Services Corp. | | |
| | |
Non-Renewable Energy — 6.5% |
Alpha Metallurgical Resources, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Civitas Resources, Inc. (a) | | |
CNX Resources Corp. * (a) | | |
Comstock Resources, Inc. (a) | | |
| | |
| | |
| | |
Helix Energy Solutions Group, Inc. * | | |
Magnolia Oil & Gas Corp., Class A (a) | | |
| | |
| | |
Newpark Resources, Inc. * | | |
Northern Oil and Gas, Inc. | | |
| | |
Par Pacific Holdings, Inc. * | | |
Patterson-UTI Energy, Inc. | | |
PBF Energy, Inc., Class A | | |
Permian Resources Corp. (a) | | |
| | |
| | |
| | |
Solaris Oilfield Infrastructure, Inc., Class A | | |
| | |
| | |
| | |
| | |
Personal Care, Drug & Grocery Stores — 2.5% |
| | |
Chefs' Warehouse, Inc. (The) * | | |
Edgewell Personal Care Co. | | |
| | |
Ingles Markets, Inc., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Personal Care, Drug & Grocery Stores — continued |
Nu Skin Enterprises, Inc., Class A | | |
| | |
| | |
Sprouts Farmers Market, Inc. * (a) | | |
United Natural Foods, Inc. * | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 3.5% |
| | |
Amphastar Pharmaceuticals, Inc. * | | |
ANI Pharmaceuticals, Inc. * | | |
Arcturus Therapeutics Holdings, Inc. * | | |
Castle Biosciences, Inc. * | | |
Catalyst Pharmaceuticals, Inc. * | | |
Collegium Pharmaceutical, Inc. * | | |
Corcept Therapeutics, Inc. * (a) | | |
Dynavax Technologies Corp. * | | |
Eagle Pharmaceuticals, Inc. * | | |
Harmony Biosciences Holdings, Inc. * | | |
| | |
Ironwood Pharmaceuticals, Inc. * | | |
Ligand Pharmaceuticals, Inc. * | | |
| | |
OmniAb Operations, Inc. ‡ * | | |
Pacira BioSciences, Inc. * | | |
| | |
Prestige Consumer Healthcare, Inc. * | | |
Prothena Corp. plc (Ireland) * (a) | | |
Supernus Pharmaceuticals, Inc. * | | |
Vanda Pharmaceuticals, Inc. * | | |
Vir Biotechnology, Inc. * | | |
| | |
| | |
| | |
|
Precious Metals & Mining — 0.2% |
| | |
Real Estate Investment & Services — 1.2% |
Anywhere Real Estate, Inc. * | | |
| | |
eXp World Holdings, Inc. (a) | | |
Kennedy-Wilson Holdings, Inc. | | |
| | |
Newmark Group, Inc., Class A | | |
Opendoor Technologies, Inc. * (a) | | |
| | |
| | |
| | |
Real Estate Investment Trusts — 11.1% |
| | |
Alexander & Baldwin, Inc. | | |
American Assets Trust, Inc. | | |
Apartment Investment and Management Co., Class A * | | |
Apple Hospitality REIT, Inc. (a) | | |
Ares Commercial Real Estate Corp. (a) | | |
| | |
Broadstone Net Lease, Inc. | | |
| | |
Community Healthcare Trust, Inc. | | |
| | |
DiamondRock Hospitality Co. | | |
| | |
Easterly Government Properties, Inc. | | |
Empire State Realty Trust, Inc., Class A | | |
| | |
Essential Properties Realty Trust, Inc. | | |
Four Corners Property Trust, Inc. | | |
GEO Group, Inc. (The) * (a) | | |
| | |
| | |
Independence Realty Trust, Inc. | | |
Innovative Industrial Properties, Inc. (a) | | |
| | |
| | |
| | |
| | |
National Health Investors, Inc. | | |
| | |
Paramount Group, Inc. (a) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Real Estate Investment Trusts — continued |
| | |
Phillips Edison & Co., Inc. (a) | | |
| | |
Piedmont Office Realty Trust, Inc., Class A | | |
| | |
Retail Opportunity Investments Corp. | | |
| | |
| | |
Ryman Hospitality Properties, Inc. | | |
Sabra Health Care REIT, Inc. | | |
| | |
| | |
SL Green Realty Corp. (a) | | |
| | |
Summit Hotel Properties, Inc. | | |
Sunstone Hotel Investors, Inc. | | |
Tanger Factory Outlet Centers, Inc. (a) | | |
| | |
| | |
| | |
| | |
Xenia Hotels & Resorts, Inc. | | |
| | |
|
| | |
REX American Resources Corp. * | | |
| | |
|
Abercrombie & Fitch Co., Class A * | | |
Academy Sports & Outdoors, Inc. | | |
America's Car-Mart, Inc. * | | |
Asbury Automotive Group, Inc. * | | |
Big 5 Sporting Goods Corp. (a) | | |
| | |
| | |
Dillard's, Inc., Class A (a) | | |
| | |
| | |
| | |
Haverty Furniture Cos., Inc. | | |
| | |
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Software & Computer Services — 2.9% |
| | |
| | |
Appfolio, Inc., Class A * | | |
| | |
| | |
Consensus Cloud Solutions, Inc. * | | |
CSG Systems International, Inc. | | |
Mitek Systems, Inc. * (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
Simulations Plus, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware & Equipment — 6.2% |
| | |
Advanced Energy Industries, Inc. | | |
Alpha & Omega Semiconductor Ltd. * | | |
| | |
Axcelis Technologies, Inc. * | | |
Benchmark Electronics, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Insight Enterprises, Inc. * | | |
Kulicke & Soffa Industries, Inc. (Singapore) | | |
| | |
Methode Electronics, Inc. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Technology Hardware & Equipment — continued |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Super Micro Computer, Inc. * | | |
| | |
| | |
Ultra Clean Holdings, Inc. * | | |
Vishay Intertechnology, Inc. (a) | | |
| | |
Telecommunications Equipment — 2.5% |
| | |
| | |
| | |
| | |
| | |
Comtech Telecommunications Corp. | | |
Digi International, Inc. * | | |
EchoStar Corp., Class A * | | |
| | |
| | |
| | |
| | |
Lightwave Logic, Inc. * (a) | | |
| | |
Ribbon Communications, Inc. * | | |
| | |
| | |
Telecommunications Service Providers — 2.6% |
| | |
Cogent Communications Holdings, Inc. | | |
Consolidated Communications Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Liberty Latin America Ltd., Class C (Puerto Rico) * | | |
Lumen Technologies, Inc. * (a) | | |
| | |
|
Telecommunications Service Providers — continued |
Shenandoah Telecommunications Co. | | |
Telephone and Data Systems, Inc. | | |
| | |
| | |
| | |
|
Turning Point Brands, Inc. | | |
| | |
| | |
| | |
|
Biglari Holdings, Inc., Class B * | | |
Bloomin' Brands, Inc. (a) | | |
| | |
El Pollo Loco Holdings, Inc. * | | |
International Game Technology plc | | |
| | |
Waste & Disposal Services — 0.4% |
Casella Waste Systems, Inc., Class A * | | |
Vertex Energy, Inc. * (a) | | |
| | |
Total Common Stocks
(Cost $418,351,646) | | |
| | |
|
Pharmaceuticals, Biotechnology & Marijuana Producers — 0.0% ^ |
Achillion Pharmaceuticals, Inc. ‡ *(Cost $—) | | |
| | |
Short-Term Investments — 12.8% |
Investment Companies — 0.1% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $365,657) | | |
Investment of Cash Collateral from Securities Loaned — 12.7% |
JPMorgan Securities Lending Money Market Fund Class Agency SL Shares, 5.53% (b) (c) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Short-Term Investments — continued |
Investment of Cash Collateral from Securities Loaned — continued |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $49,276,182) | | |
Total Short-Term Investments
(Cost $49,641,839) | | |
Total Investments — 112.7%
(Cost $467,993,485) | | |
Liabilities in Excess of Other Assets — (12.7)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Real Estate Investment Trust |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $47,876,291. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
Russell 2000 E-Mini Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Momentum Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 2.9% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Huntington Ingalls Industries, Inc. | | |
| | |
| | |
| | |
| | |
Automobiles & Parts — 0.7% |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
First Citizens BancShares, Inc., Class A | | |
| | |
|
| | |
| | |
Constellation Brands, Inc., Class A | | |
Molson Coors Beverage Co., Class B | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Construction & Materials — 1.7% |
| | |
| | |
Builders FirstSource, Inc. * | | |
| | |
| | |
|
Construction & Materials — continued |
| | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
| | |
| | |
|
Avis Budget Group, Inc. * | | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
| | |
| | |
| | |
|
Consolidated Edison, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Electronic & Electrical Equipment — 0.6% |
| | |
| | |
| | |
| | |
| | |
Finance & Credit Services — 0.1% |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Lamb Weston Holdings, Inc. | | |
Mondelez International, Inc., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Food Producers — continued |
| | |
| | |
| | |
Gas, Water & Multi-utilities — 0.6% |
| | |
| | |
| | |
| | |
General Industrials — 1.9% |
| | |
| | |
| | |
| | |
| | |
| | |
Health Care Providers — 3.3% |
Acadia Healthcare Co., Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Household Goods & Home Construction — 0.9% |
| | |
| | |
Tempur Sealy International, Inc. | | |
| | |
| | |
Industrial Engineering — 1.4% |
| | |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
Industrial Materials — 0.1% |
| | |
Industrial Metals & Mining — 1.1% |
| | |
Reliance Steel & Aluminum Co. | | |
Southern Copper Corp. (Mexico) | | |
| | |
|
Industrial Metals & Mining — continued |
| | |
| | |
| | |
Industrial Support Services — 2.1% |
| | |
Automatic Data Processing, Inc. | | |
Booz Allen Hamilton Holding Corp. | | |
| | |
| | |
| | |
Paylocity Holding Corp. * | | |
| | |
| | |
| | |
Industrial Transportation — 2.1% |
Allison Transmission Holdings, Inc. | | |
CH Robinson Worldwide, Inc. | | |
JB Hunt Transport Services, Inc. | | |
Old Dominion Freight Line, Inc. | | |
| | |
| | |
| | |
| | |
WillScot Mobile Mini Holdings Corp. * | | |
| | |
| | |
Investment Banking & Brokerage Services — 4.2% |
Ameriprise Financial, Inc. | | |
Apollo Global Management, Inc. | | |
| | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Interactive Brokers Group, Inc., Class A | | |
Jefferies Financial Group, Inc. | | |
LPL Financial Holdings, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Momentum Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Life Insurance — continued |
Principal Financial Group, Inc. | | |
| | |
| | |
|
Interpublic Group of Cos., Inc. (The) | | |
Liberty Media Corp-Liberty Formula One, Class C * | | |
| | |
Nexstar Media Group, Inc. | | |
| | |
Trade Desk, Inc. (The), Class A * | | |
| | |
Medical Equipment & Services — 3.4% |
Agilent Technologies, Inc. | | |
Boston Scientific Corp. * | | |
| | |
| | |
Inspire Medical Systems, Inc. * | | |
| | |
| | |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
Non-life Insurance — 4.6% |
American Financial Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
Marsh & McLennan Cos., Inc. | | |
Old Republic International Corp. | | |
| | |
Reinsurance Group of America, Inc. | | |
RenaissanceRe Holdings Ltd. (Bermuda) | | |
Ryan Specialty Holdings, Inc. * | | |
| | |
Non-Renewable Energy — 4.4% |
| | |
| | |
| | |
|
Non-Renewable Energy — continued |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
TechnipFMC plc (United Kingdom) | | |
| | |
| | |
Personal Care, Drug & Grocery Stores — 1.6% |
Casey's General Stores, Inc. | | |
| | |
| | |
| | |
| | |
Procter & Gamble Co. (The) | | |
| | |
|
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 5.9% |
| | |
Alnylam Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Karuna Therapeutics, Inc. * | | |
| | |
| | |
| | |
United Therapeutics Corp. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
Real Estate Investment & Services — 0.4% |
CBRE Group, Inc., Class A * | | |
Zillow Group, Inc., Class C * | | |
| | |
Real Estate Investment Trusts — 2.1% |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Real Estate Investment Trusts — continued |
| | |
Gaming and Leisure Properties, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
GameStop Corp., Class A * (a) | | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
Penske Automotive Group, Inc. (a) | | |
| | |
| | |
| | |
| | |
Software & Computer Services — 17.9% |
| | |
| | |
| | |
Bentley Systems, Inc., Class B | | |
CACI International, Inc., Class A * | | |
Cadence Design Systems, Inc. * | | |
Ceridian HCM Holding, Inc. * | | |
Cloudflare, Inc., Class A * | | |
Confluent, Inc., Class A * | | |
Dolby Laboratories, Inc., Class A | | |
DoubleVerify Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
|
Software & Computer Services — continued |
| | |
International Business Machines Corp. | | |
| | |
| | |
Manhattan Associates, Inc. * | | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Palantir Technologies, Inc., Class A * | | |
Palo Alto Networks, Inc. * | | |
Pinterest, Inc., Class A * | | |
Procore Technologies, Inc. * | | |
| | |
| | |
| | |
Science Applications International Corp. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Technology Hardware & Equipment — 12.8% |
Allegro MicroSystems, Inc. (Japan) * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * | | |
| | |
Microchip Technology, Inc. | | |
Monolithic Power Systems, Inc. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Momentum Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Technology Hardware & Equipment — continued |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Telecommunications Equipment — 2.0% |
| | |
| | |
| | |
| | |
| | |
Telecommunications Service Providers — 0.4% |
| | |
| | |
| | |
|
| | |
| | |
| | |
Chipotle Mexican Grill, Inc. * | | |
Choice Hotels International, Inc. | | |
Hilton Worldwide Holdings, Inc. | | |
Hyatt Hotels Corp., Class A | | |
| | |
| | |
Royal Caribbean Cruises Ltd. * | | |
| | |
| | |
Waste & Disposal Services — 0.9% |
| | |
| | |
| | |
Total Common Stocks
(Cost $288,196,551) | | |
| | |
Short-Term Investments — 0.2% |
Investment Companies — 0.0% ^ |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $154,302) | | |
Investment of Cash Collateral from Securities Loaned — 0.2% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $571,988) | | |
Total Short-Term Investments
(Cost $726,290) | | |
Total Investments — 100.1%
(Cost $288,922,841) | | |
Liabilities in Excess of Other Assets — (0.1)% | | |
| | |
Percentages indicated are based on net assets. |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $562,229. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
Micro E-mini S&P 500 Index | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Quality Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 0.6% |
| | |
Automobiles & Parts — 0.5% |
| | |
| | |
| | |
| | |
|
Commerce Bancshares, Inc. | | |
|
Brown-Forman Corp., Class B | | |
| | |
| | |
|
CF Industries Holdings, Inc. | | |
| | |
| | |
| | |
Construction & Materials — 1.0% |
| | |
| | |
Advanced Drainage Systems, Inc. | | |
Builders FirstSource, Inc. * | | |
Eagle Materials, Inc. (a) | | |
Fortune Brands Innovations, Inc. | | |
| | |
| | |
|
| | |
| | |
Grand Canyon Education, Inc. * | | |
| | |
| | |
| | |
|
Consolidated Edison, Inc. | | |
| | |
Hawaiian Electric Industries, Inc. (a) | | |
| | |
| | |
| | |
| | |
| | |
|
Electronic & Electrical Equipment — 0.8% |
| | |
| | |
Keysight Technologies, Inc. * | | |
Mettler-Toledo International, Inc. * | | |
| | |
Finance & Credit Services — 1.4% |
FactSet Research Systems, Inc. | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Gas, Water & Multi-utilities — 0.7% |
| | |
| | |
| | |
| | |
| | |
General Industrials — 0.9% |
| | |
Honeywell International, Inc. | | |
Illinois Tool Works, Inc. | | |
| | |
Health Care Providers — 0.4% |
| | |
| | |
| | |
| | |
Household Goods & Home Construction — 0.2% |
| | |
Industrial Engineering — 0.6% |
| | |
Lincoln Electric Holdings, Inc. | | |
| | |
| | |
Industrial Metals & Mining — 0.5% |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Industrial Metals & Mining — continued |
Reliance Steel & Aluminum Co. | | |
Southern Copper Corp. (Mexico) | | |
| | |
Industrial Support Services — 7.1% |
| | |
Automatic Data Processing, Inc. | | |
| | |
Jack Henry & Associates, Inc. | | |
Mastercard, Inc., Class A | | |
MSC Industrial Direct Co., Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Industrial Transportation — 1.7% |
Allison Transmission Holdings, Inc. | | |
CH Robinson Worldwide, Inc. | | |
Expeditors International of Washington, Inc. | | |
| | |
| | |
United Parcel Service, Inc., Class B | | |
| | |
Investment Banking & Brokerage Services — 3.9% |
Ameriprise Financial, Inc. | | |
Berkshire Hathaway, Inc., Class B * | | |
| | |
Broadridge Financial Solutions, Inc. | | |
Intercontinental Exchange, Inc. | | |
MarketAxess Holdings, Inc. | | |
| | |
| | |
Virtu Financial, Inc., Class A | | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
|
Life Insurance — continued |
| | |
Principal Financial Group, Inc. | | |
| | |
|
Sirius XM Holdings, Inc. (a) | | |
Medical Equipment & Services — 1.6% |
| | |
Agilent Technologies, Inc. | | |
| | |
Edwards Lifesciences Corp. * | | |
| | |
| | |
IDEXX Laboratories, Inc. * | | |
| | |
Non-life Insurance — 3.8% |
American Financial Group, Inc. | | |
| | |
Arch Capital Group Ltd. * | | |
| | |
| | |
| | |
Fidelity National Financial, Inc. | | |
Marsh & McLennan Cos., Inc. | | |
| | |
Travelers Cos., Inc. (The) | | |
| | |
| | |
Non-Renewable Energy — 4.5% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pioneer Natural Resources Co. | | |
Texas Pacific Land Corp. (a) | | |
| | |
Personal Care, Drug & Grocery Stores — 3.5% |
Church & Dwight Co., Inc. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Quality Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Personal Care, Drug & Grocery Stores — continued |
| | |
| | |
Procter & Gamble Co. (The) | | |
| | |
|
| | |
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 10.7% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Regeneron Pharmaceuticals, Inc. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
Precious Metals & Mining — 0.1% |
| | |
Real Estate Investment & Services — 0.3% |
CBRE Group, Inc., Class A * | | |
| | |
| | |
Real Estate Investment Trusts — 2.4% |
| | |
| | |
Equity LifeStyle Properties, Inc. | | |
| | |
Extra Space Storage, Inc. | | |
Gaming and Leisure Properties, Inc. | | |
Host Hotels & Resorts, Inc. | | |
Lamar Advertising Co., Class A | | |
Mid-America Apartment Communities, Inc. | | |
| | |
| | |
| | |
|
Real Estate Investment Trusts — continued |
Simon Property Group, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Software & Computer Services — 19.6% |
| | |
Akamai Technologies, Inc. * | | |
Alphabet, Inc., Class A * | | |
| | |
| | |
Aspen Technology, Inc. * (a) | | |
Atlassian Corp., Class A * | | |
| | |
Bentley Systems, Inc., Class B | | |
Cadence Design Systems, Inc. * | | |
Cognizant Technology Solutions Corp., Class A | | |
Crowdstrike Holdings, Inc., Class A * | | |
| | |
| | |
Dolby Laboratories, Inc., Class A | | |
DoorDash, Inc., Class A * | | |
DoubleVerify Holdings, Inc. * | | |
Dropbox, Inc., Class A * (a) | | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Software & Computer Services — continued |
| | |
International Business Machines Corp. | | |
| | |
Manhattan Associates, Inc. * | | |
Meta Platforms, Inc., Class A * | | |
| | |
Palo Alto Networks, Inc. * (a) | | |
| | |
Pinterest, Inc., Class A * | | |
RingCentral, Inc., Class A * | | |
| | |
Science Applications International Corp. | | |
| | |
Snowflake, Inc., Class A * | | |
| | |
| | |
| | |
Tyler Technologies, Inc. * | | |
| | |
| | |
| | |
Technology Hardware & Equipment — 11.3% |
Allegro MicroSystems, Inc. (Japan) * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Lattice Semiconductor Corp. * (a) | | |
Microchip Technology, Inc. | | |
| | |
| | |
| | |
Pure Storage, Inc., Class A * | | |
| | |
| | |
| | |
|
Technology Hardware & Equipment — continued |
| | |
| | |
| | |
Telecommunications Equipment — 1.3% |
| | |
| | |
| | |
| | |
Telecommunications Service Providers — 1.0% |
| | |
Charter Communications, Inc., Class A * | | |
Verizon Communications, Inc. | | |
| | |
|
| | |
Philip Morris International, Inc. | | |
| | |
|
| | |
| | |
| | |
Choice Hotels International, Inc. (a) | | |
| | |
| | |
Live Nation Entertainment, Inc. * | | |
Madison Square Garden Sports Corp. * (a) | | |
Marriott International, Inc., Class A | | |
| | |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
| | |
Waste & Disposal Services — 1.1% |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $2,407,426,490) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Quality Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Short-Term Investments — 4.1% |
Investment Companies — 0.1% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $1,995,808) | | |
Investment of Cash Collateral from Securities Loaned — 4.0% |
JPMorgan Securities Lending Money Market Fund Class Agency SL Shares, 5.53% (b) (c) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $95,271,375) | | |
Total Short-Term Investments
(Cost $97,267,183) | | |
Total Investments — 103.9%
(Cost $2,504,693,673) | | |
Liabilities in Excess of Other Assets — (3.9)% | | |
| | |
Percentages indicated are based on net assets. |
| Non-income producing security. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $93,954,626. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 1.4% |
| | |
Huntington Ingalls Industries, Inc. | | |
L3Harris Technologies, Inc. | | |
| | |
| | |
| | |
Automobiles & Parts — 1.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Citizens Financial Group, Inc. | | |
Columbia Banking System, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Huntington Bancshares, Inc. | | |
| | |
| | |
New York Community Bancorp, Inc. | | |
PNC Financial Services Group, Inc. (The) | | |
Popular, Inc. (Puerto Rico) | | |
Prosperity Bancshares, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Molson Coors Beverage Co., Class B | | |
| | |
|
| | |
| | |
LyondellBasell Industries NV, Class A | | |
| | |
| | |
Construction & Materials — 1.0% |
| | |
Builders FirstSource, Inc. * | | |
Fortune Brands Innovations, Inc. | | |
| | |
MDU Resources Group, Inc. | | |
| | |
| | |
|
| | |
Grand Canyon Education, Inc. * | | |
| | |
Service Corp. International | | |
| | |
| | |
|
| | |
Clearway Energy, Inc., Class C | | |
Consolidated Edison, Inc. | | |
| | |
| | |
| | |
Hawaiian Electric Industries, Inc. (a) | | |
| | |
Pinnacle West Capital Corp. | | |
| | |
| | |
Electronic & Electrical Equipment — 1.5% |
| | |
| | |
| | |
Johnson Controls International plc | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Electronic & Electrical Equipment — continued |
| | |
| | |
Sensata Technologies Holding plc | | |
| | |
Finance & Credit Services — 0.6% |
| | |
| | |
| | |
| | |
|
Archer-Daniels-Midland Co. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Tyson Foods, Inc., Class A | | |
| | |
| | |
| | |
Gas, Water & Multi-utilities — 0.8% |
| | |
| | |
| | |
| | |
General Industrials — 2.8% |
| | |
| | |
| | |
| | |
| | |
Graphic Packaging Holding Co. | | |
Packaging Corp. of America | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Health Care Providers — 4.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Health Services, Inc., Class B | | |
| | |
Household Goods & Home Construction — 1.8% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Industrial Engineering — 1.8% |
| | |
| | |
| | |
CNH Industrial NV (United Kingdom) (a) | | |
| | |
| | |
Stanley Black & Decker, Inc. | | |
| | |
Industrial Materials — 0.2% |
| | |
Industrial Metals & Mining — 0.8% |
| | |
| | |
Reliance Steel & Aluminum Co. | | |
United States Steel Corp. (a) | | |
| | |
Industrial Support Services — 1.7% |
| | |
Capital One Financial Corp. | | |
Fidelity National Information Services, Inc. | | |
| | |
MSC Industrial Direct Co., Inc., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Industrial Support Services — continued |
| | |
| | |
| | |
| | |
| | |
Industrial Transportation — 2.7% |
Allison Transmission Holdings, Inc. | | |
| | |
Knight-Swift Transportation Holdings, Inc. | | |
| | |
| | |
| | |
| | |
Schneider National, Inc., Class B | | |
| | |
| | |
Investment Banking & Brokerage Services — 1.3% |
Bank of New York Mellon Corp. (The) | | |
Carlyle Group, Inc. (The) | | |
| | |
| | |
Janus Henderson Group plc | | |
Jefferies Financial Group, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Thor Industries, Inc. (a) | | |
| | |
|
Corebridge Financial, Inc. | | |
Principal Financial Group, Inc. | | |
Prudential Financial, Inc. | | |
| | |
| | |
|
| | |
Interpublic Group of Cos., Inc. (The) | | |
Liberty Media Corp-Liberty SiriusXM * | | |
| | |
|
|
| | |
Nexstar Media Group, Inc. | | |
| | |
Paramount Global, Class B (a) | | |
Sirius XM Holdings, Inc. (a) | | |
| | |
Medical Equipment & Services — 1.5% |
| | |
Laboratory Corp. of America Holdings | | |
| | |
| | |
| | |
| | |
Zimmer Biomet Holdings, Inc. | | |
| | |
Mortgage Real Estate Investment Trusts — 0.8% |
AGNC Investment Corp. (a) | | |
Annaly Capital Management, Inc. | | |
| | |
Starwood Property Trust, Inc. (a) | | |
| | |
Non-life Insurance — 1.7% |
American International Group, Inc. | | |
| | |
Axis Capital Holdings Ltd. | | |
Fidelity National Financial, Inc. | | |
First American Financial Corp. | | |
Old Republic International Corp. | | |
Reinsurance Group of America, Inc. | | |
| | |
Non-Renewable Energy — 4.8% |
| | |
| | |
Chesapeake Energy Corp. (a) | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Non-Renewable Energy — continued |
| | |
Pioneer Natural Resources Co. | | |
| | |
| | |
Personal Care, Drug & Grocery Stores — 1.3% |
Albertsons Cos., Inc., Class A | | |
| | |
| | |
Spectrum Brands Holdings, Inc. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Pharmaceuticals, Biotechnology & Marijuana Producers — 6.9% |
| | |
| | |
| | |
Fortrea Holdings, Inc. * (a) | | |
| | |
| | |
Maravai LifeSciences Holdings, Inc., Class A * | | |
| | |
| | |
| | |
| | |
United Therapeutics Corp. * | | |
| | |
| | |
Real Estate Investment & Services — 0.0% ^ |
Jones Lang LaSalle, Inc. * | | |
Real Estate Investment Trusts — 2.6% |
Brixmor Property Group, Inc. | | |
| | |
| | |
| | |
Gaming and Leisure Properties, Inc. | | |
| | |
|
Real Estate Investment Trusts — continued |
Highwoods Properties, Inc. (a) | | |
| | |
| | |
Medical Properties Trust, Inc. (a) | | |
| | |
Omega Healthcare Investors, Inc. (a) | | |
Park Hotels & Resorts, Inc. | | |
| | |
Simon Property Group, Inc. | | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Dick's Sporting Goods, Inc. | | |
| | |
| | |
| | |
Lithia Motors, Inc., Class A | | |
| | |
| | |
| | |
Penske Automotive Group, Inc. (a) | | |
| | |
Victoria's Secret & Co. * (a) | | |
| | |
| | |
Software & Computer Services — 16.4% |
Akamai Technologies, Inc. * | | |
Alphabet, Inc., Class A * | | |
| | |
| | |
AppLovin Corp., Class A * (a) | | |
CACI International, Inc., Class A * | | |
| | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
Dolby Laboratories, Inc., Class A | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Software & Computer Services — continued |
| | |
Dun & Bradstreet Holdings, Inc. | | |
| | |
| | |
| | |
| | |
| | |
Hewlett Packard Enterprise Co. | | |
| | |
International Business Machines Corp. | | |
| | |
| | |
| | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Science Applications International Corp. | | |
SS&C Technologies Holdings, Inc. | | |
| | |
| | |
Zoom Video Communications, Inc., Class A * | | |
ZoomInfo Technologies, Inc. * | | |
| | |
Technology Hardware & Equipment — 14.5% |
| | |
| | |
| | |
| | |
Arrow Electronics, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
GLOBALFOUNDRIES, Inc. * (a) | | |
| | |
| | |
|
Technology Hardware & Equipment — continued |
| | |
| | |
| | |
| | |
| | |
| | |
Microchip Technology, Inc. | | |
| | |
Monolithic Power Systems, Inc. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Universal Display Corp. (a) | | |
| | |
| | |
Telecommunications Equipment — 1.0% |
| | |
Telecommunications Service Providers — 1.3% |
| | |
| | |
DISH Network Corp., Class A * (a) | | |
Verizon Communications, Inc. | | |
| | |
|
| | |
Philip Morris International, Inc. | | |
| | |
|
| | |
| | |
Marriott Vacations Worldwide Corp. | | |
MGM Resorts International | | |
Penn Entertainment, Inc. * (a) | | |
| | |
United Airlines Holdings, Inc. * | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan U.S. Value Factor ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Travel & Leisure — continued |
| | |
Wyndham Hotels & Resorts, Inc. | | |
| | |
Total Common Stocks
(Cost $745,786,981) | | |
Short-Term Investments — 5.1% |
Investment Companies — 0.1% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $841,596) | | |
Investment of Cash Collateral from Securities Loaned — 5.0% |
JPMorgan Securities Lending Money Market Fund Class Agency SL Shares, 5.53% (b) (c) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $34,253,585) | | |
Total Short-Term Investments
(Cost $35,095,181) | | |
Total Investments — 104.9%
(Cost $780,882,162) | | |
Liabilities in Excess of Other Assets — (4.9)% | | |
| | |
Percentages indicated are based on net assets. |
| Amount rounds to less than 0.1% of net assets. |
| Non-income producing security. | |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $33,450,655. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023
| JPMorgan
BetaBuilders
Canada ETF | JPMorgan
BetaBuilders
Developed Asia
Pacific ex-Japan ETF | JPMorgan
BetaBuilders
Emerging Markets
Equity ETF | JPMorgan
BetaBuilders
Europe ETF |
| | | | |
Investments in non-affiliates, at value | | | | |
Investments in affiliates, at value | | | | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | | | | |
| | | | |
Foreign currency, at value | | | | |
Deposits at broker for futures contracts | | | | |
| | | | |
Investment securities sold | | | | |
Dividends from non-affiliates | | | | |
Dividends from affiliates | | | | |
| | | | |
Securities lending income (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Collateral received on securities loaned (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Deferred foreign capital gains tax | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributable earnings (loss) | | | | |
| | | | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | | | |
Net asset value, per share | | | | |
Cost of investments in non-affiliates | | | | |
Cost of investments in affiliates | | | | |
| | | | |
Investment securities on loan, at value (See Note 2.C.) | | | | |
Cost of investment of cash collateral (See Note 2.C.) | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023 (continued)
| JPMorgan
BetaBuilders
International
Equity ETF | JPMorgan
BetaBuilders
Japan ETF | JPMorgan
BetaBuilders
U.S. Equity ETF | JPMorgan
BetaBuilders U.S.
Mid Cap Equity
ETF |
| | | | |
Investments in non-affiliates, at value | | | | |
Investments in affiliates, at value | | | | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | | | | |
| | | | |
Foreign currency, at value | | | | |
Deposits at broker for futures contracts | | | | |
| | | | |
| | | | |
Dividends from non-affiliates | | | | |
Dividends from affiliates | | | | |
| | | | |
Securities lending income (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment securities purchased | | | | |
Collateral received on securities loaned (See Note 2.C.) | | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributable earnings (loss) | | | | |
| | | | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | | | |
Net asset value, per share | | | | |
Cost of investments in non-affiliates | | | | |
Cost of investments in affiliates | | | | |
| | | | |
Investment securities on loan, at value (See Note 2.C.) | | | | |
Cost of investment of cash collateral (See Note 2.C.) | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
BetaBuilders U.S.
Small Cap
Equity ETF | JPMorgan
Carbon
Transition U.S.
Equity ETF | JPMorgan
Diversified
Return
Emerging
Markets Equity
ETF | JPMorgan
Diversified Return
International
Equity ETF |
| | | | |
Investments in non-affiliates, at value | | | | |
Investments in affiliates, at value | | | | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | | | | |
| | | | |
Foreign currency, at value | | | | |
Deposits at broker for futures contracts | | | | |
| | | | |
Investment securities sold | | | | |
| | | | |
Dividends from non-affiliates | | | | |
Dividends from affiliates | | | | |
| | | | |
Securities lending income (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment securities purchased | | | | |
Collateral received on securities loaned (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Deferred foreign capital gains tax | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributable earnings (loss) | | | | |
| | | | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | | | |
Net asset value, per share | | | | |
Cost of investments in non-affiliates | | | | |
Cost of investments in affiliates | | | | |
| | | | |
Investment securities on loan, at value (See Note 2.C.) | | | | |
Cost of investment of cash collateral (See Note 2.C.) | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023 (continued)
| JPMorgan
Diversified
Return U.S.
Equity ETF | JPMorgan
Diversified
Return U.S. Mid
Cap Equity ETF | JPMorgan
Diversified
Return U.S. Small
Cap Equity ETF | JPMorgan U.S.
Momentum
Factor ETF |
| | | | |
Investments in non-affiliates, at value | | | | |
Investments in affiliates, at value | | | | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | | | | |
| | | | |
Deposits at broker for futures contracts | | | | |
| | | | |
| | | | |
Dividends from non-affiliates | | | | |
Dividends from affiliates | | | | |
Securities lending income (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment securities purchased | | | | |
Collateral received on securities loaned (See Note 2.C.) | | | | |
Variation margin on futures contracts | | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributable earnings (loss) | | | | |
| | | | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | | | |
Net asset value, per share | | | | |
Cost of investments in non-affiliates | | | | |
Cost of investments in affiliates | | | | |
Investment securities on loan, at value (See Note 2.C.) | | | | |
Cost of investment of cash collateral (See Note 2.C.) | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan U.S.
Quality Factor
ETF | JPMorgan U.S.
Value Factor
ETF |
| | |
Investments in non-affiliates, at value | | |
Investments in affiliates, at value | | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | | |
| | |
Deposits at broker for futures contracts | | |
| | |
Investment securities sold | | |
Dividends from non-affiliates | | |
Dividends from affiliates | | |
Securities lending income (See Note 2.C.) | | |
| | |
| | |
| | |
| | |
Collateral received on securities loaned (See Note 2.C.) | | |
| | |
Variation margin on futures contracts | | |
| | |
Management fees (See Note 3.A.) | | |
| | |
| | |
| | |
| | |
Total distributable earnings (loss) | | |
| | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | |
Net asset value, per share | | |
Cost of investments in non-affiliates | | |
Cost of investments in affiliates | | |
Investment securities on loan, at value (See Note 2.C.) | | |
Cost of investment of cash collateral (See Note 2.C.) | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023
| JPMorgan
BetaBuilders
Canada ETF | JPMorgan
BetaBuilders
Developed Asia
Pacific ex-Japan ETF | JPMorgan
BetaBuilders
Emerging Markets
Equity ETF (a) | |
| | | | |
Interest income from non-affiliates | | | | |
Interest income from affiliates | | | | |
Dividend income from non-affiliates | | | | |
Dividend income from affiliates | | | | |
Income from securities lending (net) (See Note 2.C.) | | | | |
Foreign taxes withheld (net) | | | | |
| | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Interest expense to non-affiliates | | | | |
Interest expense to affiliates | | | | |
| | | | |
Net investment income (loss) | | | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | | | |
Net realized gain (loss) on transactions from: | | | | |
Investments in non-affiliates | | | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | | | |
| | | | |
Foreign currency transactions | | | | |
| | | | |
Change in net unrealized appreciation/depreciation on: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
| | | | |
Foreign currency translations | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Net realized/unrealized gains (losses) | | | | |
Change in net assets resulting from operations | | | | |
(a)
Commencement of operations was May 10, 2023.
(b)
Net of foreign capital gains tax of $(98,864).
(c)
Net of change in foreign capital gains tax of $(430,029).
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
BetaBuilders
International
Equity ETF | JPMorgan
BetaBuilders
Japan ETF | JPMorgan
BetaBuilders
U.S. Equity ETF | JPMorgan
BetaBuilders U.S.
Mid Cap Equity
ETF |
| | | | |
Interest income from non-affiliates | | | | |
Interest income from affiliates | | | | |
Dividend income from non-affiliates | | | | |
Dividend income from affiliates | | | | |
Income from securities lending (net) (See Note 2.C.) | | | | |
Foreign taxes withheld (net) | | | | |
| | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Interest expense to non-affiliates | | | | |
Interest expense to affiliates | | | | |
| | | | |
Net investment income (loss) | | | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | | | |
Net realized gain (loss) on transactions from: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | | | |
In-kind redemptions of investments in affiliates (See Note 4) | | | | |
| | | | |
Foreign currency transactions | | | | |
| | | | |
Change in net unrealized appreciation/depreciation on: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
| | | | |
Foreign currency translations | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Net realized/unrealized gains (losses) | | | | |
Change in net assets resulting from operations | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023 (continued)
| JPMorgan
BetaBuilders U.S.
Small Cap
Equity ETF | JPMorgan
Carbon
Transition U.S.
Equity ETF | JPMorgan
Diversified
Return
Emerging
Markets Equity
ETF | JPMorgan
Diversified Return
International
|
| | | | |
Interest income from non-affiliates | | | | |
Interest income from affiliates | | | | |
Dividend income from non-affiliates | | | | |
Dividend income from affiliates | | | | |
Income from securities lending (net) (See Note 2.C.) | | | | |
Foreign taxes withheld (net) | | | | |
| | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Interest expense to non-affiliates | | | | |
Interest expense to affiliates | | | | |
| | | | |
Net investment income (loss) | | | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | | | |
Net realized gain (loss) on transactions from: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | | | |
| | | | |
Foreign currency transactions | | | | |
| | | | |
Change in net unrealized appreciation/depreciation on: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
| | | | |
Foreign currency translations | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Net realized/unrealized gains (losses) | | | | |
Change in net assets resulting from operations | | | | |
(a)
Net of foreign capital gains tax of $(234,030).
(b)
Net of change in foreign capital gains tax of $(58,645).
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
Diversified
Return U.S.
Equity ETF | JPMorgan
Diversified
Return U.S. Mid
Cap Equity ETF | JPMorgan
Diversified
Return U.S. Small
Cap Equity ETF | JPMorgan U.S.
Momentum
Factor ETF |
| | | | |
Interest income from non-affiliates | | | | |
Interest income from affiliates | | | | |
Dividend income from non-affiliates | | | | |
Dividend income from affiliates | | | | |
Income from securities lending (net) (See Note 2.C.) | | | | |
| | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
| | | | |
Net investment income (loss) | | | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | | | |
Net realized gain (loss) on transactions from: | | | | |
Investments in non-affiliates | | | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | | | |
| | | | |
| | | | |
Change in net unrealized appreciation/depreciation on: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Net realized/unrealized gains (losses) | | | | |
Change in net assets resulting from operations | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023 (continued)
| JPMorgan U.S.
Quality Factor
ETF | JPMorgan U.S.
Value Factor
ETF |
| | |
Interest income from non-affiliates | | |
Interest income from affiliates | | |
Dividend income from non-affiliates | | |
Dividend income from affiliates | | |
Income from securities lending (net) (See Note 2.C.) | | |
| | |
| | |
Management fees (See Note 3.A.) | | |
Interest expense to affiliates | | |
| | |
Net investment income (loss) | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | |
Net realized gain (loss) on transactions from: | | |
Investments in non-affiliates | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | |
| | |
| | |
Change in net unrealized appreciation/depreciation on: | | |
Investments in non-affiliates | | |
Investments in affiliates | | |
| | |
Change in net unrealized appreciation/depreciation | | |
Net realized/unrealized gains (losses) | | |
Change in net assets resulting from operations | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED
| JPMorgan BetaBuilders
Canada ETF | JPMorgan BetaBuilders Developed
Asia Pacific ex-Japan ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan BetaBuilders
Emerging Markets Equity ETF | JPMorgan BetaBuilders
Europe ETF |
| Period Ended
October 31, 2023 (a) | Year Ended
October 31, 2023 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | |
Net investment income (loss) | | | |
| | | |
Change in net unrealized appreciation/depreciation | | | |
Change in net assets resulting from operations | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | |
Total distributions to shareholders | | | |
| | | |
Change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Proceeds from shares issued | | | |
| | | |
Total change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
Net increase (decrease) in shares from share transactions | | | |
(a)
Commencement of operations was May 10, 2023.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan BetaBuilders
International Equity ETF | JPMorgan BetaBuilders
Japan ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan BetaBuilders
U.S. Equity ETF | JPMorgan BetaBuilders U.S.
Mid Cap Equity ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Distributions of capital gains received from investment company affiliates | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan BetaBuilders U.S. Small
Cap Equity ETF | JPMorgan Carbon Transition
U.S. Equity ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan Diversified Return
Emerging Markets Equity ETF | JPMorgan Diversified Return
International Equity ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Distributions of capital gains received from investment company affiliates | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan Diversified Return
U.S. Equity ETF | JPMorgan Diversified Return
U.S. Mid Cap Equity ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan Diversified Return
U.S. Small Cap Equity ETF | JPMorgan
U.S. Momentum Factor ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
U.S. Quality Factor ETF | JPMorgan
U.S. Value Factor ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | Year Ended
October 31, 2023 | Year Ended
October 31, 2022 |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Distributions of capital gains received from investment company affiliates | | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
| | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
Net increase (decrease) in shares from share transactions | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan BetaBuilders Canada ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 (f) | | | | | |
Year Ended October 31, 2020 (f) | | | | | |
Year Ended October 31, 2019 (f) | | | | | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 (f) | | | | | |
Year Ended October 31, 2020 (f) | | | | | |
Year Ended October 31, 2019 (f) | | | | | |
JPMorgan BetaBuilders Emerging Markets Equity ETF | | | | | |
May 10, 2023 (h) through October 31, 2023 | | | | | |
JPMorgan BetaBuilders Europe ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 (f) | | | | | |
Year Ended October 31, 2020 (f) | | | | | |
Year Ended October 31, 2019 (f) | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Prior to December 9, 2019, market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the midpoint of the bid/ask spread at the close of business on the listing exchange of the Fund. Effective December 9, 2019, the closing price was used to calculate the market price return; however, any prices used in the calculation for market price return prior to December 9, 2019, would have used the midpoint of the bid/ask spread at the close of business on the exchange. |
| Per share amounts reflects a 1:2 reverse stock split that occurred on April 12, 2021. |
| Prior to November 1, 2019, the Fund may have waived fees if expenses exceeded the expense cap. On November 1, 2019, the Fund adopted a unitary fee structure where a management fee is accrued by the Fund based on prior day net assets and other expenses are paid by the Advisor. |
| Commencement of operations. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | Portfolio
turnover
rate (c) |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED (continued)
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan BetaBuilders International Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
December 3, 2019 (f) through October 31, 2020 | | | | | |
JPMorgan BetaBuilders Japan ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 (i) | | | | | |
Year Ended October 31, 2020 (i) | | | | | |
Year Ended October 31, 2019 (i) | | | | | |
JPMorgan BetaBuilders U.S. Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
March 12, 2019 (f) through October 31, 2019 | | | | | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
April 14, 2020 (f) through October 31, 2020 | | | | | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
November 16, 2020 (f) through October 31, 2021 | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Prior to December 9, 2019, market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the midpoint of the bid/ask spread at the close of business on the listing exchange of the Fund. Effective December 9, 2019, the closing price was used to calculate the market price return; however, any prices used in the calculation for market price return prior to December 9, 2019, would have used the midpoint of the bid/ask spread at the close of business on the exchange. |
| Commencement of operations. |
| Calculation of the net realized and unrealized gains (losses) per share do not correlate with the Fund’s net realized and unrealized gains (losses) presented in the Statement of Operations due to the timing of capital transactions in relation to the fluctuating market values of the Fund’s investments. |
| Since the shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of secondary market trading, the net asset value is used as a proxy for the secondary market trading price to calculate the market returns. |
| Per share amounts reflects a 1:2 reverse stock split that occurred on April 12, 2021. |
| Prior to November 1, 2019, the Fund may have waived fees if expenses exceeded the expense cap. On November 1, 2019, the Fund adopted a unitary fee structure where a management fee is accrued by the Fund based on prior day net assets and other expenses are paid by the Advisor. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | Portfolio
turnover
rate (c) |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED (continued)
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan Carbon Transition U.S. Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
December 9, 2020 (f) through October 31, 2021 | | | | | |
JPMorgan Diversified Return Emerging Markets Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
JPMorgan Diversified Return International Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
JPMorgan Diversified Return U.S. Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Prior to December 9, 2019, market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the midpoint of the bid/ask spread at the close of business on the listing exchange of the Fund. Effective December 9, 2019, the closing price was used to calculate the market price return; however, any prices used in the calculation for market price return prior to December 9, 2019, would have used the midpoint of the bid/ask spread at the close of business on the exchange. |
| Commencement of operations. |
| Since the shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of secondary market trading, the net asset value is used as a proxy for the secondary market trading price to calculate the market returns. |
| Prior to November 1, 2019, the Fund may have waived fees if expenses exceeded the expense cap. On November 1, 2019, the Fund adopted a unitary fee structure where a management fee is accrued by the Fund based on prior day net assets and other expenses are paid by the Advisor. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | Portfolio
turnover
rate (c) |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED (continued)
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (a) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
|
| Calculated based upon average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Prior to December 9, 2019, market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the midpoint of the bid/ask spread at the close of business on the listing exchange of the Fund. Effective December 9, 2019, the closing price was used to calculate the market price return; however, any prices used in the calculation for market price return prior to December 9, 2019, would have used the midpoint of the bid/ask spread at the close of business on the exchange. |
| Prior to November 1, 2019, the Fund may have waived fees if expenses exceeded the expense cap. On November 1, 2019, the Fund adopted a unitary fee structure where a management fee is accrued by the Fund based on prior day net assets and other expenses are paid by the Advisor. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets | |
Net asset
value,
end of
period | | | Market
price
total
return (c) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED (continued)
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (a) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan U.S. Momentum Factor ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
JPMorgan U.S. Quality Factor ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
JPMorgan U.S. Value Factor ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
|
| Calculated based upon average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Prior to December 9, 2019, market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the midpoint of the bid/ask spread at the close of business on the listing exchange of the Fund. Effective December 9, 2019, the closing price was used to calculate the market price return; however, any prices used in the calculation for market price return prior to December 9, 2019, would have used the midpoint of the bid/ask spread at the close of business on the exchange. |
| Prior to November 1, 2019, the Fund may have waived fees if expenses exceeded the expense cap. On November 1, 2019, the Fund adopted a unitary fee structure where a management fee is accrued by the Fund based on prior day net assets and other expenses are paid by the Advisor. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets | |
Net asset
value,
end of
period | | | Market
price
total
return (c) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023
1. Organization
J.P. Morgan Exchange-Traded Fund Trust (the “Trust”) was formed on February 25, 2010, and is governed by a Declaration of Trust as amended and restated February 19, 2014, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 18 separate funds of the Trust (each, a "Fund" and collectively, the "Funds") covered by this report:
| Diversification Classification |
JPMorgan BetaBuilders Canada ETF | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | |
JPMorgan BetaBuilders Emerging Markets Equity ETF(1) | |
JPMorgan BetaBuilders Europe ETF | |
JPMorgan BetaBuilders International Equity ETF | |
JPMorgan BetaBuilders Japan ETF | |
JPMorgan BetaBuilders U.S. Equity ETF | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | |
JPMorgan Carbon Transition U.S. Equity ETF | |
JPMorgan Diversified Return Emerging Markets Equity ETF | |
JPMorgan Diversified Return International Equity ETF | |
JPMorgan Diversified Return U.S. Equity ETF | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | |
JPMorgan U.S. Momentum Factor ETF | |
JPMorgan U.S. Quality Factor ETF | |
JPMorgan U.S. Value Factor ETF | |
|
| Commenced operations on May 10, 2023. |
The investment objective of JPMorgan BetaBuilders Canada ETF (“BetaBuilders Canada ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Canada Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF (“BetaBuilders Developed Asia Pacific ex-Japan ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders Emerging Markets Equity ETF (“BetaBuilders Emerging Markets Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Emerging Markets Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders Europe ETF (“BetaBuilders Europe ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Europe Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders International Equity ETF (“BetaBuilders International Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Developed Markets ex-North America Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders Japan ETF (“BetaBuilders Japan ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® Japan Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders U.S. Equity ETF (“BetaBuilders U.S. Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Target Market Exposure IndexSM.
The investment objective of JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (“BetaBuilders U.S. Mid Cap Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Mid Cap Target Market Exposure Extended IndexSM.
The investment objective of JPMorgan BetaBuilders U.S. Small Cap Equity ETF (“BetaBuilders U.S. Small Cap Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the Morningstar® US Small Cap Target Market Exposure Extended IndexSM.
| J.P. Morgan Exchange-Traded Funds | |
The investment objective of JPMorgan Carbon Transition U.S. Equity ETF (“Carbon Transition U.S. Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JPMorgan Asset Management Carbon Transition U.S. Equity Index.
The investment objective of JPMorgan Diversified Return Emerging Markets Equity ETF (“Emerging Markets Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor Emerging Markets Equity Index.
The investment objective of JPMorgan Diversified Return International Equity ETF (“International Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor International Equity Index.
The investment objective of JPMorgan Diversified Return U.S. Equity ETF (“U.S. Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Equity Index.
The investment objective of JPMorgan Diversified Return U.S. Mid Cap Equity ETF (“U.S. Mid Cap Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Mid Cap Equity Index.
The investment objective of JPMorgan Diversified Return U.S. Small Cap Equity ETF (“U.S. Small Cap Equity ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan Diversified Factor US Small Cap Equity Index.
The investment objective of JPMorgan U.S. Momentum Factor ETF (“U.S. Momentum Factor ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Momentum Factor Index.
The investment objective of JPMorgan U.S. Quality Factor ETF (“U.S. Quality Factor ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Quality Factor Index.
The investment objective of JPMorgan U.S. Value Factor ETF (“U.S. Value Factor ETF”) is to seek investment results that closely correspond, before fees and expenses, to the performance of the JP Morgan US Value Factor Index.
J.P. Morgan Investment Management Inc. (“JPMIM”), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), acts as adviser (the “Adviser”) and administrator (the “Administrator”) to the Funds.
Shares of each Fund are listed and traded at market price on an exchange as follows:
| |
| |
BetaBuilders Developed Asia Pacific ex-Japan ETF | |
BetaBuilders Emerging Markets Equity ETF | |
| |
BetaBuilders International Equity ETF | |
| |
BetaBuilders U.S. Equity ETF | |
BetaBuilders U.S. Mid Cap Equity ETF | |
BetaBuilders U.S. Small Cap Equity ETF | |
Carbon Transition U.S. Equity ETF | |
Emerging Markets Equity ETF | |
| |
| |
| |
U.S. Small Cap Equity ETF | |
| |
| |
| |
Market prices for the Funds’ shares may be different from their net asset value (“NAV”).
The Funds issue and redeem their shares on a continuous basis, through JPMorgan Distribution Services, Inc. (the “Distributor” or “JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, at NAV in large blocks of shares, referred to as “Creation Units”. Creation Units are issued and redeemed in exchange for a basket of securities and/or cash. Shares are generally traded in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Only individuals or institutions that have entered into an authorized participant agreement with the Distributor may do business directly with the Funds (each, an “Authorized Participant”).
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A. Valuation of Investments — Investments are valued in accordance with GAAP and the Funds' valuation policies set forth by, and under the supervision and responsibility of, the Board of Trustees of the Trust (the "Board"), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at their market value and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
Under Section 2(a)(41) of the 1940 Act, the Board is required to determine fair value for securities that do not have readily available market quotations. Under SEC Rule 2a-5 (Good Faith Determinations of Fair Value), the Board may designate the performance of these fair valuation determinations to a valuation designee. The Board has designated the Adviser as the “Valuation Designee” to perform fair valuation determinations for the Funds on behalf of the Board subject to appropriate oversight by the Board. The Adviser, as Valuation Designee, leverages the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to help oversee and carry out the policies for the valuation of investments held in the Funds. The Adviser, as Valuation Designee, remains responsible for the valuation determinations.
This oversight by the AVC includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight including, but not limited to, consideration of macro or security specific events, market events, and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and, at least on a quarterly basis, with the AVC and the Board.
A market-based approach is primarily used to value the Funds' investments. Investments for which market quotations are not readily available are fair valued using prices supplied by approved affiliated and/or unaffiliated pricing vendors or third party broker-dealers (collectively referred to as “Pricing Services”) or may be internally fair valued using methods set forth by the valuation policies approved by the Boards. This may include the use of related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information for the investment. An income-based valuation approach may be used in which the anticipated future cash flows of the investment are discounted to calculate the fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. It is possible that the estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and such differences could be material.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the NAVs of the Funds are calculated on a valuation date. Certain foreign equity instruments are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post-closing, but prior to the time the NAVs are calculated.
Investments in open-end investment companies (“Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Futures contracts are generally valued on the basis of available market quotations.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer-related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds' investments are summarized into the three broad levels listed below.
•
Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments.
•
Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.
•
Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds' assumptions in determining the fair value of investments).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
| J.P. Morgan Exchange-Traded Funds | |
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments ("SOIs"):
| | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
BetaBuilders Emerging Markets Equity ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
BetaBuilders Emerging Markets Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
BetaBuilders Europe ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
BetaBuilders International Equity ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
BetaBuilders International Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Short-Term Investments | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
| | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
BetaBuilders Japan ETF (continued) | | | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
Commercial Services & Supplies | | | | |
Construction & Engineering | | | | |
| | | | |
Consumer Staples Distribution & Retail | | | | |
| | | | |
Diversified Telecommunication Services | | | | |
| | | | |
| | | | |
Electronic Equipment, Instruments & Components | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Health Care Equipment & Supplies | | | | |
Health Care Providers & Services | | | | |
| | | | |
Hotels, Restaurants & Leisure | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Interactive Media & Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Oil, Gas & Consumable Fuels | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Real Estate Management & Development | | | | |
| | | | |
| | | | |
Semiconductors & Semiconductor Equipment | | | | |
| | | | |
| | | | |
Technology Hardware, Storage & Peripherals | | | | |
Textiles, Apparel & Luxury Goods | | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
BetaBuilders Japan ETF (continued) | | | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
Trading Companies & Distributors | | | | |
Transportation Infrastructure | | | | |
Wireless Telecommunication Services | | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
BetaBuilders U.S. Equity ETF | | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Short-Term Investments | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
BetaBuilders U.S. Mid Cap Equity ETF | | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
BetaBuilders U.S. Small Cap Equity ETF | | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
| J.P. Morgan Exchange-Traded Funds | |
BetaBuilders U.S. Small Cap Equity ETF (continued) | | | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
| |
Carbon Transition U.S. Equity ETF | | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
Emerging Markets Equity ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Emerging Markets Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
There were no significant transfers into or out of level 3 for the year ended October 31, 2023.
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
International Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Short-Term Investments | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Appreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Appreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
U.S. Small Cap Equity ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Electronic & Electrical Equipment | | | | |
Finance & Credit Services | | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
U.S. Small Cap Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
Gas, Water & Multi-utilities | | | | |
| | | | |
| | | | |
Household Goods & Home Construction | | | | |
| | | | |
| | | | |
Industrial Metals & Mining | | | | |
Industrial Support Services | | | | |
Industrial Transportation | | | | |
Investment Banking & Brokerage Services | | | | |
| | | | |
| | | | |
| | | | |
Medical Equipment & Services | | | | |
Mortgage Real Estate Investment Trusts | | | | |
Nonequity Investment Instruments | | | | |
| | | | |
| | | | |
Personal Care, Drug & Grocery Stores | | | | |
| | | | |
Pharmaceuticals, Biotechnology & Marijuana Producers | | | | |
| | | | |
Real Estate Investment & Services | | | | |
Real Estate Investment Trusts | | | | |
| | | | |
| | | | |
Software & Computer Services | | | | |
Technology Hardware & Equipment | | | | |
Telecommunications Equipment | | | | |
Telecommunications Service Providers | | | | |
| | | | |
| | | | |
Waste & Disposal Services | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Short-Term Investments | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
| |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the NAVs of the Funds.
As of October 31, 2023, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A and/or Regulation S under the Securities Act.
C. Securities Lending — The Funds are authorized to engage in securities lending in order to generate additional income. The Funds are able to lend to approved borrowers. Citibank N.A. (“Citibank”) serves as lending agent for the Funds, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in the Class IM Shares of the JPMorgan U.S. Government Money Market Fund and the Agency SL Class Shares of the JPMorgan Securities Lending Money Market Fund. The Funds retain the interest earned on cash collateral investments but are required to pay the borrower a rebate for the use of the cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Funds or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Income from securities lending (net). The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statements of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
the borrower so as to maintain a collateralization level of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities), subject to certain de minimis amounts.
The value of securities out on loan is recorded as an asset on the Statements of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of collateral investments are disclosed on the SOIs.
The Funds bear the risk of loss associated with the collateral investments and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, the Funds may incur losses that exceed the amount they earned on lending the security. Upon termination of a loan, the Funds may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the collateral investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
The following table presents for each lending Fund, the value of the securities on loan with Citibank, net of amounts available for offset under the master netting arrangements and any related collateral received or posted by the Funds as of October 31, 2023.
| Investment Securities
on Loan, at value,
Presented on the
Statements of Assets
and Liabilities | Cash Collateral
Posted by Borrower* | Net Amount Due
to Counterparty
(not less than zero) |
| | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | | |
| | | |
BetaBuilders International Equity ETF | | | |
| | | |
BetaBuilders U.S. Equity ETF | | | |
BetaBuilders U.S. Mid Cap Equity ETF | | | |
BetaBuilders U.S. Small Cap Equity ETF | | | |
| | | |
| | | |
| | | |
U.S. Small Cap Equity ETF | | | |
| | | |
| | | |
| | | |
|
| Collateral posted reflects the value of securities on loan and does not include any additional amounts received from the borrower. |
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Funds from losses resulting from a borrower’s failure to return a loaned security.
| J.P. Morgan Exchange-Traded Funds | |
JPMIM voluntarily waived management fees charged to the Funds to reduce the impact of the cash collateral investment in the JPMorgan U.S. Government Money Market Fund from 0.13% to 0.06%. For the year ended October 31, 2023, JPMIM waived fees associated with the Funds' investment in the JPMorgan U.S. Government Money Market Fund as follows:
| |
BetaBuilders Developed Asia Pacific ex-Japan ETF | |
| |
BetaBuilders International Equity ETF | |
| |
BetaBuilders U.S. Equity ETF | |
BetaBuilders U.S. Mid Cap Equity ETF | |
BetaBuilders U.S. Small Cap Equity ETF | |
Emerging Markets Equity ETF | |
| |
| |
| |
U.S. Small Cap Equity ETF | |
| |
| |
| |
The above waiver is included in the determination of earnings on cash collateral investment and in the calculation of Citibank’s compensation and is included on the Statements of Operations as Income from securities lending (net).
Carbon Transition U.S. Equity ETF did not lend out any securities during the year ended October 31, 2023. BetaBuilders Emerging Markets Equity ETF and Emerging Markets Equity ETF did not have any securities out on loan at October 31, 2023.
D. Investment Transactions with Affiliates — The Funds invested in Underlying Funds advised by the Adviser. An issuer which is under common control with a Fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. The Underlying Funds’ distributions may be reinvested into such Underlying Funds. Reinvestment amounts are included in the purchases at cost amounts in the tables below.
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
BetaBuilders Developed Asia Pacific ex-Japan ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
BetaBuilders Emerging Markets Equity ETF |
For the period ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
| | | | | | | | | |
|
| Commencement of operations was May 10, 2023. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
BetaBuilders International Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
BetaBuilders U.S. Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
| | | | | | | | | |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (b) (c) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in affiliate. This security is included in an index which the Fund, as an index fund, tracks. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
BetaBuilders U.S. Mid Cap Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
| J.P. Morgan Exchange-Traded Funds | |
BetaBuilders U.S. Mid Cap Equity ETF (continued) |
For the year ended October 31, 2023 |
| | | | | Change in Unrealized Appreciation/ (Depreciation) | | | | Capital Gain Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
BetaBuilders U.S. Small Cap Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Carbon Transition U.S. Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Emerging Markets Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
U.S. Small Cap Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
U.S. Small Cap Equity ETF (continued) |
For the year ended October 31, 2023 |
| | | | | Change in Unrealized Appreciation/ (Depreciation) | | | | Capital Gain Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| J.P. Morgan Exchange-Traded Funds | |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
E. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments in non-affiliates on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund's books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at year end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
F. Futures Contracts — The Funds used index futures contracts to obtain long exposure to gain or reduce exposure to the stock market, to gain or reduce exposure to particular countries or regions, maintain liquidity, minimize transaction costs or to manage and hedge interest rate risk associated with portfolio investments.
Futures contracts provide for the delayed delivery of the underlying instrument at a fixed price or are settled for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. Upon entering into a futures contract, the Funds are required to deposit with the broker, cash or securities in an amount equal to a certain percentage of the contract amount, which is referred to as the initial margin deposit. Subsequent payments, referred to as variation margin, are made or received by the Funds periodically and are based on changes in the market value of open futures contracts. Changes in the market value of open futures contracts are recorded as Change in net unrealized appreciation/depreciation on futures contracts on the Statements of Operations. Realized gains or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported on the Statements of Operations at the closing or expiration of the futures contract. Securities deposited as initial margin are designated on the SOIs, while cash deposited, which is considered restricted, is recorded on the Statements of Assets and Liabilities. A receivable from and/or a payable to brokers for the daily variation margin is also recorded on the Statements of Assets and Liabilities.
The use of futures contracts exposes the Funds to equity price risks. The Funds may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying instrument. Use of long futures contracts subjects the Funds to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Funds to unlimited risk of loss. The Funds may enter into futures contracts only on exchanges or boards of trade. The exchange or board
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
of trade acts as the counterparty to each futures transaction; therefore, the Funds' credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of positions.
The Funds' futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
The table below discloses the volume of the Funds' futures contracts activity during the year ended October 31, 2023:
| | BetaBuilders
Developed
Asia Pacific
ex-Japan
ETF | BetaBuilders
Emerging Markets
Equity ETF | | BetaBuilders
International
Equity ETF | |
| | | | | | |
Average Notional Balance Long | | | | | | |
Ending Notional Balance Long | | | | | | |
| BetaBuilders
U.S. Equity ETF | BetaBuilders U.S.
Mid Cap Equity
ETF | BetaBuilders U.S.
Small Cap
Equity ETF | Carbon
Transition U.S.
Equity ETF | Emerging
Markets
Equity ETF | |
| | | | | | |
Average Notional Balance Long | | | | | | |
Ending Notional Balance Long | | | | | | |
| | | | | | |
| | | | | | |
Average Notional Balance Long | | | | | | |
Ending Notional Balance Long | | | | | | |
|
| For the period May 10, 2023 through October 31, 2023. |
G. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis.
Dividend income, net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary, once the issuers provide information about the actual composition of the distributions.
| J.P. Morgan Exchange-Traded Funds | |
H. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund's policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds' tax positions for all open tax years and has determined that as of October 31, 2023, no liability for Federal income tax is required in the Funds' financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each Fund's Federal tax returns for the prior three fiscal years, or since inception if shorter, remain subject to examination by the Internal Revenue Service.
I. Foreign Taxes —The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. When a capital gains tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
J. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least quarterly, except for BetaBuilders Japan ETF, for which distributions are generally declared and paid at least annually. Net realized capital gains, if any, are distributed by each Fund at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax basis treatment.
The following amounts were reclassified within the capital accounts:
| | Accumulated
undistributed
(distributions in
excess of)
net investment
income | Accumulated
net realized
gains (losses) |
| | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | | |
BetaBuilders Emerging Markets Equity ETF | | | |
| | | |
BetaBuilders International Equity ETF | | | |
| | | |
BetaBuilders U.S. Equity ETF | | | |
BetaBuilders U.S. Mid Cap Equity ETF | | | |
BetaBuilders U.S. Small Cap Equity ETF | | | |
Carbon Transition U.S. Equity ETF | | | |
Emerging Markets Equity ETF | | | |
| | | |
| | | |
| | | |
U.S. Small Cap Equity ETF | | | |
| | | |
| | | |
| | | |
The reclassifications for the Funds relate primarily to tax adjustments on certain investments, foreign currency gains or losses, foreign taxes and redemptions in-kind.
3. Fees and Other Transactions with Affiliates
A. Management Fee— JPMIM manages the investments of each Fund pursuant to a Management Agreement. For such services, JPMIM is paid a fee which is accrued daily and paid no more frequently than monthly based on each Fund's respective average daily net assets at the following rate:
| |
| |
BetaBuilders Developed Asia Pacific ex-Japan ETF | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
| |
BetaBuilders Emerging Markets Equity ETF | |
| |
BetaBuilders International Equity ETF | |
| |
BetaBuilders U.S. Equity ETF | |
BetaBuilders U.S. Mid Cap Equity ETF | |
BetaBuilders U.S. Small Cap Equity ETF | |
Carbon Transition U.S. Equity ETF | |
Emerging Markets Equity ETF | |
| |
| |
| |
U.S. Small Cap Equity ETF | |
| |
| |
| |
Under each Management Agreement, JPMIM is responsible for substantially all expenses of each Fund, (including expenses of the Trust relating to each Fund), except for the management fees, payments under the Funds' 12b-1 plan (if any), interest expenses, dividend and interest expenses related to short sales, taxes, acquired fund fees and expenses (other than fees for funds advised by the Adviser and/or its affiliates), costs of holding shareholder meetings, and litigation and potential litigation and other extraordinary expenses not incurred in the ordinary course of each Fund’s business. Additionally, each Fund is responsible for its non-operating expenses, including brokerage commissions and fees and expenses associated with each Fund’s securities lending program, if applicable. For the avoidance of doubt, the Adviser’s payment of such expenses may be accomplished through a Fund’s payment of such expenses and a corresponding reduction in the fee payable to the Adviser, provided, however, that if the amount of expenses paid by a Fund exceeds the fee payable to the Adviser, the Adviser will reimburse that Fund for such amount.
B. Administration Fee — JPMIM provides administration services to the Funds. Pursuant to each Management Agreement, JPMIM is compensated as described in Note 3.A.
JPMorgan Chase Bank, N.A. (“JPMCB”), a wholly-owned subsidiary of JPMorgan, serves as the Funds' sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the management fees payable to JPMIM.
C. Custodian, Accounting and Transfer Agent Fees— JPMCB provides custody, accounting and transfer agency services to the Funds. For performing these services, JPMIM pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses.
Additionally, Authorized Participants generally pay transaction fees associated with the creation and redemption of Fund shares. These fees are paid to JPMIM to offset certain custodian charges that are covered by each Management Agreement.
Interest income earned on cash balances at the custodian, if any, is included in Interest income from affiliates on the Statements of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statements of Operations.
D. Distribution Services — The Distributor or its agent distributes Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of each Fund. JPMDS receives no fees for their distribution services under the distribution agreement with the Trust (the “Distribution Agreement”). Although the Trust does not pay any fees under the Distribution Agreement, JPMIM pays JPMDS for certain distribution related services.
E. Waivers and Reimbursements — The Funds may invest in one or more money market funds advised by the Adviser (affiliated money market funds). The fees for the affiliated money market funds, except for investments of securities lending cash collateral, are covered under each Management Agreement as described in Note 3.A.
F. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. Such officers receive no compensation from the Funds for serving in their respective roles.
The Board designated and appointed a Chief Compliance Officer to the Funds pursuant to Rule 38a-1 under the 1940 Act. The fees associated with the office of the Chief Compliance Officer are paid for by JPMIM as described in Note 3.A.
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities LLC, an affiliated broker, involving taxable money market instruments, subject to certain conditions.
| J.P. Morgan Exchange-Traded Funds | |
4. Investment Transactions
During the year ended October 31, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Purchases
(excluding
U.S. Government) | Sales
(excluding
U.S. Government) |
| | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
BetaBuilders Emerging Markets Equity ETF | | |
| | |
BetaBuilders International Equity ETF | | |
| | |
BetaBuilders U.S. Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Carbon Transition U.S. Equity ETF | | |
Emerging Markets Equity ETF | | |
| | |
| | |
| | |
U.S. Small Cap Equity ETF | | |
| | |
| | |
| | |
During the year ended October 31, 2023, there were no purchases or sales of U.S. Government securities.
For the year ended October 31, 2023, in-kind transactions associated with creations and redemptions were as follows:
| | |
| | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
BetaBuilders Emerging Markets Equity ETF | | |
| | |
BetaBuilders International Equity ETF | | |
| | |
BetaBuilders U.S. Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Carbon Transition U.S. Equity ETF | | |
Emerging Markets Equity ETF | | |
| | |
| | |
| | |
U.S. Small Cap Equity ETF | | |
| | |
| | |
| | |
During the year ended October 31, 2023, the Funds delivered portfolio securities for the redemption of Fund shares (in-kind redemptions). Cash and portfolio securities were transferred for redemptions at fair value. For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each in-kind redemption transaction.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
| | | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | | | |
BetaBuilders Emerging Markets Equity ETF | | | | |
| | | | |
BetaBuilders International Equity ETF | | | | |
| | | | |
BetaBuilders U.S. Equity ETF | | | | |
BetaBuilders U.S. Mid Cap Equity ETF | | | | |
BetaBuilders U.S. Small Cap Equity ETF | | | | |
Carbon Transition U.S. Equity ETF | | | | |
Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
| | | | |
U.S. Small Cap Equity ETF | | | | |
| | | | |
| | | | |
| | | | |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to tax adjustments on certain investments, tax adjustments on certain derivatives and wash sale loss deferrals.
| J.P. Morgan Exchange-Traded Funds | |
The tax character of distributions paid during the year ended October 31, 2023 was as follows:
| | |
| | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
BetaBuilders Emerging Markets Equity ETF | | |
| | |
BetaBuilders International Equity ETF | | |
| | |
BetaBuilders U.S. Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Carbon Transition U.S. Equity ETF | | |
Emerging Markets Equity ETF | | |
| | |
| | |
| | |
U.S. Small Cap Equity ETF | | |
| | |
| | |
| | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended October 31, 2022 was as follows:
| | |
| | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
| | |
BetaBuilders International Equity ETF | | |
| | |
BetaBuilders U.S. Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Carbon Transition U.S. Equity ETF | | |
Emerging Markets Equity ETF | | |
| | |
| | |
| | |
U.S. Small Cap Equity ETF | | |
| | |
| | |
| | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
As of October 31, 2023, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows:
| Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
(Tax Basis Capital
Loss Carryover) | Unrealized
Appreciation
(Depreciation) |
| | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | | |
BetaBuilders Emerging Markets Equity ETF | | | |
| | | |
BetaBuilders International Equity ETF | | | |
| | | |
BetaBuilders U.S. Equity ETF | | | |
BetaBuilders U.S. Mid Cap Equity ETF | | | |
BetaBuilders U.S. Small Cap Equity ETF | | | |
Carbon Transition U.S. Equity ETF | | | |
Emerging Markets Equity ETF | | | |
| | | |
| | | |
| | | |
U.S. Small Cap Equity ETF | | | |
| | | |
| | | |
| | | |
The cumulative timing differences primarily consist of tax adjustments on certain investments, trustee deferred compensation, tax adjustments on certain derivatives and wash sale loss deferrals.
At October 31, 2023, the following Funds had net capital loss carryforwards, which are available to offset future realized gains:
| Capital Loss Carryforward Character |
| | |
| | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
BetaBuilders Emerging Markets Equity ETF | | |
| | |
BetaBuilders International Equity ETF | | |
| | |
BetaBuilders U.S. Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Carbon Transition U.S. Equity ETF | | |
Emerging Markets Equity ETF | | |
| | |
| | |
| | |
U.S. Small Cap Equity ETF | | |
| | |
| | |
| | |
|
| Amount includes capital loss carryforwards which are limited in future years under Internal Revenue Code sections 381-384. |
| J.P. Morgan Exchange-Traded Funds | |
During the year ended October 31, 2023, the following Fund utilized capital loss carryforwards as follows:
6. Capital Share Transactions
The Trust issues and redeems shares of the Funds only in Creation Units through the Distributor at NAV. Capital shares transactions detail can be found in the Statements of Changes in Net Assets.
Shares of the Funds may only be purchased or redeemed by Authorized Participants. Such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the Funds' shares outstanding and act as executing or clearing broker for investment transactions on behalf of the Funds. An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”); or (2) a DTC Participant; which, in either case, must have executed an agreement with the Distributor.
Creation Units of a Fund may be created in advance of receipt by the Trust of all or a portion of the applicable basket of equity securities and other instruments (“Deposit Instruments”) and cash as described in the Funds’ registration statement. In these instances, the initial Deposit Instruments and cash must be deposited in an amount equal to the sum of the cash amount, plus at least 105% for BetaBuilders Canada ETF, BetaBuilders Developed Asia Pacific ex-Japan ETF, BetaBuilders Europe ETF, BetaBuilders International Equity ETF, BetaBuilders Japan ETF, BetaBuilders U.S. Small Cap Equity ETF, Carbon Transition U.S. Equity ETF and International Equity ETF, and plus at least 110% for Emerging Markets Equity ETF of the market value of undelivered Deposit Instruments. A transaction fee may be imposed to offset transfer and other transaction costs associated with the purchase or redemption of Creation Units.
7. Borrowings
Effective November 1, 2022, the Funds rely upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Funds because the Funds and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
As of October 31, 2023, the Funds had no borrowings outstanding from another fund, or loans outstanding to another fund. Average borrowings from the Facility during the year ended October 31, 2023 were as follows:
| | | | |
BetaBuilders Developed Asia Pacific ex-Japan ETF | | | | |
Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
The Trust and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until October 29, 2024.
The Funds had no borrowings outstanding from the unsecured, uncommitted credit facility during the year ended October 31, 2023.
Effective August 8, 2023, the Trust, along with certain other trusts for J.P. Morgan Funds (“Borrowers”), has entered into an existing joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. Although the Trust is effectively part of the Credit Facility as of August 8, 2023, it is not eligible to draw on the Credit Facility, and will not incur costs associated with being a part of the Credit Facility, until on or about May 28, 2024.
This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
minimum of $25 million in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the fund must remediate within three business days with respect to the $25 million minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% (the "Applicable Margin"), plus the greater of the federal funds effective rate or the one-month Adjusted Secured Overnight Financing Rate ("SOFR"). Effective August 8, 2023, the Credit Facility has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended October 31, 2023.
8. Risks, Concentrations and Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund's maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be brought against each Fund. However, based on experience, the Funds expect the risk of loss to be remote.
As of October 31, 2023, JPMorgan SmartRetirement Funds and JPMorgan SmartRetirement Blend Funds, which are affiliated fund of funds, each owned in the aggregate, shares representing more than 10% of the net assets of the Funds as follows:
| JPMorgan
SmartRetirement
Funds | JPMorgan
SmartRetirement
Blend Funds |
BetaBuilders Emerging Markets Equity ETF | | |
BetaBuilders International Equity ETF | | |
BetaBuilders U.S. Mid Cap Equity ETF | | |
BetaBuilders U.S. Small Cap Equity ETF | | |
Significant shareholder transactions by these shareholders may impact the Funds' performance and liquidity.
Significant shareholder transactions by the Adviser may impact the Funds' performance and liquidity.
BetaBuilders Canada ETF, BetaBuilders Developed Asia Pacific ex-Japan ETF, BetaBuilders Emerging Markets Equity ETF, BetaBuilders Europe ETF, BetaBuilders International Equity ETF, BetaBuilders Japan ETF, Emerging Markets Equity ETF and International Equity ETF may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of foreign countries or regions, which may vary throughout the period. Such concentrations may subject each of these Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
Investing in securities of foreign countries may include certain risks and considerations not typically associated with investing in U.S. securities. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and currencies, and future and adverse political, social and economic developments.
| J.P. Morgan Exchange-Traded Funds | |
As of October 31, 2023, the following Funds had non-U.S. country allocations representing greater than 10% of total investments (excluding investment of cash collateral from securities loaned) as follows:
| | BetaBuilders
Developed
Asia Pacific
ex-Japan
ETF | BetaBuilders
Emerging Markets
Equity ETF | | BetaBuilders
International
Equity ETF | | Emerging
Markets
Equity ETF |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
As of October 31, 2023, a significant portion of the investments of the BetaBuilders Canada ETF, BetaBuilders Developed Asia Pacific ex-Japan ETF, BetaBuilders Europe ETF, BetaBuilders International Equity ETF, BetaBuilders Japan ETF, Emerging Markets Equity ETF and International Equity ETF consisted of securities that were denominated in foreign currencies. Changes in currency exchange rates will affect the value of, and investment income from, such securities.
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic and market conditions and could result in losses that significantly exceed the Funds’ original investment. Many derivatives create leverage thereby causing the Funds to be more volatile than they would have been if they had not used derivatives. Derivatives also expose the Funds to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations), including credit risk of the derivative counterparty. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Funds to sell or otherwise close a derivatives position could expose the Funds to losses.
Disruptions to creations and redemptions, the existence of significant market volatility or potential lack of an active trading market for the shares (including through a trading halt), as well as other factors, may result in Shares trading significantly above (at a premium) or below (at a discount) to the NAV or to the intraday value of the Funds’ holdings. During such periods, investors may incur significant losses if shares are sold.
The Funds may not track the return of their underlying index for a number of reasons and therefore may not achieve their investment objective. For example, the Funds incur a number of operating expenses not applicable to their underlying index, and incur costs in buying and selling securities, especially when rebalancing the Funds’ securities holdings to reflect changes in the composition of the underlying index. In addition, each Fund’s return may differ from the return of its underlying index as a result of, among other things, pricing differences and the inability to purchase certain securities included in the underlying index due to regulatory or other restrictions. To the extent of the previously outlined items, each Fund’s return may differ from the return of the underlying index.
BetaBuilders Canada ETF, BetaBuilders Developed Asia Pacific ex-Japan ETF, BetaBuilders Emerging Markets Equity ETF, BetaBuilders Europe ETF, BetaBuilders International Equity ETF, BetaBuilders Japan ETF, Emerging Markets Equity ETF and International Equity ETF invest in foreign issuers and foreign securities (including depositary receipts) that are subject to additional risks, including political and economic risks, unstable governments, civil conflicts and war, greater volatility, decreased market liquidity, expropriation and nationalization risks, sanctions or other measures by the United States or other governments, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, liquidity risks and less stringent investor protection and disclosure standards of foreign markets. In certain markets where securities and other instruments are not traded “delivery versus payment,” a Fund may not receive timely payment for securities or other instruments it has delivered or receive delivery of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. Foreign market trading hours, clearance and settlement procedures, and holiday schedules may limit the Funds' ability to buy and sell securities.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. Diversified Return Emerging Markets Equity ETF invests a substantial portion of their assets in emerging market countries. These risks are magnified in countries in emerging markets. Emerging market countries typically have less established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable.
Additionally, the Funds may have substantial difficulties exercising their legal rights or enforcing a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular in emerging market countries, which can increase the risks of loss.
The Funds are subject to infectious disease epidemics/pandemics risk. For example, the outbreak of COVID-19 negatively affected economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of any future pandemic or other global event to business and market conditions may have a significant negative impact on the performance of a Fund's investments, increase a Fund's volatility, negatively impact a Fund’s arbitrage and pricing mechanisms, exacerbate other pre-existing political, social and economic risks to the Funds and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic or other global event that affect the instruments in which the Funds invest, or the issuers of such instruments, in ways that could have a significant negative impact on a Fund’s investment performance. The ultimate impact of any pandemic or other global event and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
9. Subsequent Event
Subsequent to December 18, 2023, Carbon Transition U.S. Equity ETF had net redemptions of $1,527,485, which represented 27% of the Fund’s net assets as of December 18, 2023.
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of J.P. Morgan Exchange-Traded Fund Trust and Shareholders of each of the eighteen funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of each of the funds listed in the table below (eighteen of the funds constituting J.P. Morgan Exchange-Traded Fund Trust, hereafter collectively referred to as the "Funds") as of October 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Fund
JPMorgan BetaBuilders Canada ETF (1) |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF (1) |
JPMorgan BetaBuilders Emerging Markets Equity ETF (2) |
JPMorgan BetaBuilders Europe ETF (1) |
JPMorgan BetaBuilders International Equity ETF (1) |
JPMorgan BetaBuilders Japan ETF (1) |
JPMorgan BetaBuilders U.S. Equity ETF (1) |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF (1) |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF (1) |
JPMorgan Carbon Transition U.S. Equity ETF (1) |
JPMorgan Diversified Return Emerging Markets Equity ETF (1) |
JPMorgan Diversified Return International Equity ETF (1) |
JPMorgan Diversified Return U.S. Equity ETF (1) |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF (1) |
JPMorgan Diversified Return U.S. Small Cap Equity ETF (1) |
JPMorgan U.S. Momentum Factor ETF (1) |
JPMorgan U.S. Quality Factor ETF (1) |
JPMorgan U.S. Value Factor ETF (1) |
| Statement of operations for the year ended October 31, 2023 and statement of changes in net assets for the years ended October 31, 2023 and 2022 |
| Statement of operations and statement of changes in net assets for the period May 10, 2023 (commencement of operations) through October 31, 2023 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 21, 2023
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
| J.P. Morgan Exchange-Traded Funds | |
The Funds' Statement of Additional Information includes additional information about the Funds' Trustees and is available, without charge, upon request by calling 1-844-457-6383 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth);
Positions With
the Funds (1) | Principal Occupation
During Past 5 Years | Number of
Funds in Fund
Complex Overseen
by Trustee (2) | Other Directorships Held
During the Past 5 Years |
| |
John F. Finn (1947); Chair
since 2020; Trustee since 1998. | Chairman, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present). |
Stephen P. Fisher (1959);
Trustee since 2018. | Retired; Chairman and Chief Executive Officer, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | | Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). |
Gary L. French (1951);
Trustee since 2014. | Real Estate Investor (2011-2020); Investment management industry Consultant and Expert Witness (2011-present); Senior Consultant for The Regulatory Fundamentals Group LLC (2011-2017). | | Independent Trustee, The China Fund, Inc. (2013-2019); Exchange Traded Concepts Trust II (2012-2014); Exchange Traded Concepts Trust I (2011-2014). |
Kathleen M. Gallagher (1958);
Trustee since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | | Non- Executive Director, Legal & General Investment Management (Holdings) (2018-present); Non-Executive Director, Legal & General Investment Management America (U.S. Holdings) (financial services and insurance) (2017-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). |
Robert J. Grassi (1957);
Trustee since 2014. | Sole Proprietor, Academy Hills Advisors LLC (2012-present); Pension Director, Corning Incorporated (2002-2012). | | |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Frankie D. Hughes (1952);
Trustee since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | | |
Raymond Kanner (1953);
Trustee since 2017. | Retired; Managing Director and Chief Investment Officer, IBM Retirement Funds (2007-2016). | | Advisory Board Member, Penso Advisors, LLC (2020-present); Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017- present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016- 2017); Advisory Board Member, BlueStar Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). |
Thomas P. Lemke (1954);
Trustee since 2014. | | | (1) Independent Trustee of Advisors’ Inner Circle III fund platform, consisting of the following: (i) the Advisors’ Inner Circle Fund III, (ii) the Gallery Trust, (iii) the Schroder Series Trust, (iv) the Delaware Wilshire Private Markets Fund (since 2020), (v) Chiron Capital Allocation Fund Ltd., and (vi) formerly the Winton Diversified Opportunities Fund (2014-2018); and (2) Independent Trustee of the Symmetry Panoramic Trust (since 2018). |
Lawrence R. Maffia (1950);
Trustee since 2014. | Retired; Director and President, ICI Mutual Insurance Company (2006-2013). | | Director, ICI Mutual Insurance Company (1999-2013). |
Mary E. Martinez (1960); Vice
Chair since 2021; Trustee since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (asset management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | | |
Marilyn McCoy (1948);
Trustee since 1999. | Retired; Vice President of Administration and Planning, Northwestern University (1985-2023). | | |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Dr. Robert A. Oden, Jr. (1946); Trustee
since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | | Trustee, The Coldwater Conservation Fund (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Trustee and Vice Chair, Trout Unlimited (2017-2021); Trustee, Dartmouth- Hitchcock Medical Center (2011-2020). |
Marian U. Pardo* (1946);
Trustee since 2013. | Managing Director and Founder, Virtual Capital Management LLC (investment consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | | Board Chair and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
Emily A. Youssouf (1951);
Trustee since 2014. | Adjunct Professor (2011-present) and Clinical Professor (2009-2011), NYU Schack Institute of Real Estate; Board Member and Member of the Audit Committee (2013–present), Chair of Finance Committee (2019-present), Member of Related Parties Committee (2013-2018) and Member of the Enterprise Risk Committee (2015-2018), PennyMac Financial Services, Inc.; Board Member (2005-2018), Chair of Capital Committee (2006-2016), Chair of Audit Committee (2005-2018), Member of Finance Committee (2005-2018) and Chair of IT Committee (2016-2018), NYC Health and Hospitals Corporation. | | Trustee, NYC School Construction Authority (2009-present); Board Member, NYS Job Development Authority (2008-present); Trustee and Chair of the Audit Committee of the Transit Center Foundation (2015-2019). |
| |
Robert F. Deutsch** (1957);
Trustee since 2014. | Retired; Head of ETF Business for JPMorgan Asset Management (2013-2017); Head of Global Liquidity Business for JPMorgan Asset Management (2003-2013). | | Treasurer and Director of the JUST Capital Foundation (2017-present). |
Nina O. Shenker** (1957);
Trustee since 2022. | Vice Chair (2017-2021), General Counsel and Managing Director (2008-2016), Associate General Counsel and Managing Director (2004-2008), J.P. Morgan Asset & Wealth Management. | | Director and Member of Legal and Human Resources Subcommittees, American Jewish Joint Distribution Committee (2018-present). |
|
| The year shown is the first year in which a Trustee became a member of any of the following: the JPMorgan Mutual Fund Board, the JPMorgan ETF Board, the heritage J.P. Morgan Funds or the heritage One Group Mutual Funds. Trustees serve an indefinite term, until resignation, retirement, removal or death. The Board's current retirement policy sets retirement at the end of the calendar year in which the Trustee attains the age of 75, provided that any Board member who was a member of the JPMorgan Mutual Fund Board prior to January 1, 2022 and was born prior to January 1, 1950 shall retire from the Board at the end of the calendar year in which the Trustee attains the age of 78. |
| A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes nine registered investment companies (170 J.P. Morgan Funds). |
| In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
| Designation as an “Interested Trustee” is based on prior employment by the Adviser or an affiliate of the Adviser or interests in a control person of the Adviser. |
| The contact address for each of the Trustees is 277 Park Avenue, New York, NY 10172. |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth),
Positions Held with
the Trust (Since) | Principal Occupations During Past 5 Years |
Brian S. Shlissel (1964),
President and Principal Executive
Officer (2021) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. since 2014. |
Timothy J. Clemens (1975),
Treasurer and Principal Financial
Officer (2020) | Managing Director, J.P. Morgan Investment Management Inc. Mr. Clemens has been with J.P. Morgan Investment Management Inc. since 2013. |
Gregory S. Samuels (1980),
Secretary (2022) (formerly Assistant
Secretary 2014-2022) | Managing Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Samuels has been with JPMorgan Chase & Co. since 2010. |
Stephen M. Ungerman (1953),
Chief Compliance Officer (2014) | Managing Director, JPMorgan Chase & Co. Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. |
Kiesha Astwood-Smith (1973),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Senior Director and Counsel, Equitable Financial Life Insurance Company (formerly, AXA Equitable Life Insurance Company) from September 2015 through June 2021. |
Matthew Beck (1988),
Assistant Secretary (2021)* | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since May 2021; Senior Legal Counsel, Ultimus Fund Solutions from May 2018 through May 2021; General Counsel, The Nottingham Company from April 2014 through May 2018. |
Elizabeth A. Davin (1964),
Assistant Secretary (2022)
(formerly Secretary 2018-2022)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Davin has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 2004. |
Jessica K. Ditullio (1962),
Assistant Secretary (2014)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Ditullio has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 1990. |
Anthony Geron (1971),
Assistant Secretary (2019) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since September 2018; Lead Director and Counsel, AXA Equitable Life Insurance Company from 2015 to 2018 and Senior Director and Counsel, AXA Equitable Life Insurance Company from 2014 to 2015. |
Carmine Lekstutis (1980),
Assistant Secretary (2014) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Lekstutis has been with JPMorgan Chase & Co. since 2011. |
Max Vogel (1990),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Associate, Proskauer Rose LLP (law firm) from March 2017 to June 2021. |
Zachary E. Vonnegut-Gabovitch
(1986),
Assistant Secretary (2017) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Vonnegut-Gabovitch has been with JPMorgan Chase & Co. since September 2016. |
Frederick J. Cavaliere (1978),
Assistant Treasurer (2015)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Cavaliere has been with JPMorgan Chase & Co. since May 2006. |
Michael M. D’Ambrosio (1969),
Assistant Treasurer (2014) | Managing Director, J.P. Morgan Investment Management Inc. Mr. D’Ambrosio has been with J.P. Morgan Investment Management Inc. since 2012. |
Aleksandr Fleytekh (1972),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Mr. Fleytekh has been with J.P. Morgan Investment Management Inc. since February 2012. |
Shannon Gaines (1977),
Assistant Treasurer (2019)* | Executive Director, J.P. Morgan Investment Management Inc. Mr. Gaines has been with J.P. Morgan Investment Management Inc. since January 2014. |
Jeffrey D. House (1972),
Assistant Treasurer (2023)* | Vice President, J.P. Morgan Investment Management Inc. Mr. House has been with J.P. Morgan Investment Management Inc. since July 2006. |
Michael Mannarino (1985),
Assistant Treasurer (2023) | Vice President, J.P. Morgan Investment Management Inc. Mr. Mannarino has been with J.P. Morgan Investment Management Inc. since 2014. |
| J.P. Morgan Exchange-Traded Funds | |
OFFICERS(Unaudited) (continued)
Nektarios E. Manolakakis (1972),
Assistant Treasurer (2020) | Executive Director, J.P. Morgan Investment Management Inc. since February 2021, formerly Vice President, J.P. Morgan Investment Management Inc. since 2014; Vice President, J.P. Morgan Corporate & Investment Bank 2010-2014. |
Todd McEwen (1981),
Assistant Treasurer (2020)* | Vice President, J.P. Morgan Investment Management Inc. Mr. McEwen has been with J.P. Morgan Investment Management Inc. since 2010. |
Joseph Parascondola (1963),
Assistant Treasurer (2023)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Parascondola has been with J.P. Morgan Investment Management Inc. since 2006. |
Gillian I. Sands (1969),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Ms. Sands has been with J.P. Morgan Investment Management Inc. since September 2012. |
|
The contact address for each of the officers, unless otherwise noted, is 277 Park Avenue, New York, NY 10172. |
| The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| The contact address for the officer is 575 Washington Boulevard, Jersey City, NJ 07310. |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on your purchase and sales of Fund shares and (2) ongoing costs, primarily management fees. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these ongoing costs with the ongoing costs of investing in other funds. The examples assume that you had a $1,000 investment at the beginning of the reporting period, May 1, 2023, and continued to hold your shares at the end of the reporting period, October 31, 2023.
Actual Expenses
For each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Fund under the heading titled “Expenses Paid During the
Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The examples also assume all dividends and distributions have been reinvested. The examples do not take into account brokerage commissions that you pay when purchasing or selling shares of a Fund.
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | Expenses Paid During the Period | |
JPMorgan BetaBuilders Canada ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders Europe ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders International Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders Japan ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders U.S. Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited) (continued)
Hypothetical $1,000 Investment
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | Expenses Paid During the Period | |
JPMorgan Carbon Transition U.S. Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Diversified Return Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Diversified Return International Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Diversified Return U.S. Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan U.S. Momentum Factor ETF | | | | |
| | | | |
| | | | |
JPMorgan U.S. Quality Factor ETF | | | | |
| | | | |
| | | | |
JPMorgan U.S. Value Factor ETF | | | | |
| | | | |
| | | | |
|
| Expenses are equal to each Fund's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 174/365 (to reflect the actual period). The Fund commenced operations on May 10, 2023. |
| J.P. Morgan Exchange-Traded Funds | |
LIQUIDITY RISK MANAGEMENT PROGRAM(Unaudited)
Each of the Funds covered in this report has adopted the J.P. Morgan Funds and J.P. Morgan Exchange-Traded Funds Amended and Restated Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Program seeks to assess, manage and review each Fund’s Liquidity Risk. “Liquidity Risk” is defined as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. Pursuant to an exemptive order (the “Exemptive Order”) from the Securities and Exchange Commission, the Program permits the Funds to use liquidity definitions and classification methodologies that differ from the requirements under the Liquidity Rule in some respects. Among other things, the Liquidity Rule requires that a written report be provided to the Board of Trustees (the “Board”) on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of any Highly Liquid Investment Minimum (“HLIM”), where applicable, and any material changes to the Program.
The Board has appointed J.P. Morgan Asset Management’s Liquidity Risk Forum to be the program administrator for the Program (the “Program Administrator”). In addition to regular reporting at each of its quarterly meetings, on February 7, 2023, the Board reviewed the Program Administrator’s annual written report (the “Report”) concerning the operation of the Program for the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, where applicable, the operation of a Fund’s HLIM. There were no material changes to the Program during the Program Reporting Period.
The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program has been adequately and effectively implemented with respect to each Fund. Such information and factors included, among other things: (1) the effectiveness of the Program with respect to the identification of each Fund that qualifies as an “In-Kind ETF” (as defined in the Liquidity Rule); (2) the liquidity risk framework used to assess, manage, and periodically review each Fund’s Liquidity Risk and the results of this assessment; (3) the methodology and inputs for classifying the investments of a Fund (other than an In-Kind ETF) into one of the required liquidity categories that reflect an estimate of the liquidity of those investments under current market conditions (and, for In-Kind ETFs, the methodology and inputs for determining whether any investments should be classified as “Illiquid Investments” (as defined or modified under the Program)); (4) whether a Fund (other than an In-Kind ETF) invested primarily in “Highly Liquid Investments” (as defined or modified under the Program), as well as whether an HLIM should be established for a Fund (other than an In-Kind ETF) and the procedures for monitoring any HLIM; (5) whether a Fund invested more than 15% of its assets in “Illiquid Investments” and the procedures for monitoring for this limit; and (6) specific liquidity events arising during the Program Reporting Period. The Report further summarized the conditions of the Exemptive Order and whether all applicable Funds were in compliance with the terms of the Exemptive Order.
Based on this review, the Report concluded that: (1) the Program continues to be reasonably designed to effectively assess and manage each Fund’s Liquidity Risk; and (2) the Program has been adequately and effectively implemented with respect to each Fund during the Program Reporting Period.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited)
JPMorgan BetaBuilders Canada ETF, JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF, JPMorgan BetaBuilders Europe ETF, JPMorgan BetaBuilders International Equity ETF, JPMorgan BetaBuilders Japan ETF, JPMorgan BetaBuilders U.S. Equity ETF, JPMorgan BetaBuilders U.S. Mid Cap Equity ETF, JPMorgan BetaBuilders U.S. Small Cap Equity ETF, JPMorgan Carbon Transition U.S. Equity ETF, JPMorgan Diversified Return Emerging Markets Equity ETF, JPMorgan Diversified Return International Equity ETF, JPMorgan Diversified Return U.S. Equity ETF, JPMorgan Diversified Return U.S. Mid Cap Equity ETF, JPMorgan Diversified Return U.S. Small Cap Equity ETF, JPMorgan U.S. Momentum Factor ETF, JPMorgan U.S. Quality Factor ETF and JPMorgan U.S. Value Factor ETF
The Board of Trustees (the “Board” or the “Trustees”) has established various standing committees composed of Trustees with diverse backgrounds, to which the Board has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board and its investment committees (Money Market and Alternative Products Committee, Equity Committee, and Fixed Income Committee) met regularly throughout the year and, at each meeting, considered factors that are relevant to their annual consideration of the continuation of the management agreements. The Board also met for the specific purpose of considering management agreement annual renewals. The Board held meetings June 20-21, 2023 and August 8-10, 2023, at which the Trustees considered the continuation of the management agreements for JPMorgan BetaBuilders Canada ETF, JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF, JPMorgan BetaBuilders Europe ETF, JPMorgan BetaBuilders International Equity ETF, JPMorgan BetaBuilders Japan ETF, JPMorgan BetaBuilders U.S. Equity ETF, JPMorgan BetaBuilders U.S. Mid Cap Equity ETF, JPMorgan BetaBuilders U.S. Small Cap Equity ETF, JPMorgan Carbon Transition U.S. Equity ETF, JPMorgan Diversified Return Emerging Markets Equity ETF, JPMorgan Diversified Return International Equity ETF, JPMorgan Diversified Return U.S. Equity ETF, JPMorgan Diversified Return U.S. Mid Cap Equity ETF, JPMorgan Diversified Return U.S. Small Cap Equity ETF, JPMorgan U.S. Momentum Factor ETF, JPMorgan U.S. Quality Factor ETF and JPMorgan U.S. Value Factor ETF (each a “Fund,” and collectively, the “Funds”) whose annual report is contained herein (each a “Management Agreement” and collectively, the “Management Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered each investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not parties to a Management Agreement or “interested persons” (as defined in the Investment Company Act
of 1940) of any party to a Management Agreement or any of their affiliates, approved the continuation of each Management Agreement on August 10, 2023.
As part of their review of the Management Agreements, the Trustees considered and reviewed performance and other information about the Funds received from J.P. Morgan Investment Management Inc. (the “Adviser”). This information included the Funds’ performance as compared to the performance of their peers and benchmarks, and analyses by the Adviser of the Funds’ performance. In addition, at each of their regular meetings throughout the year, the Trustees considered reports on the performance of certain J.P. Morgan Funds provided by an independent investment consulting firm (the “independent consultant”). In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance and expense information compiled by Broadridge, using data from Lipper Inc. and/or Morningstar Inc., independent providers of investment company data (together, “Broadridge”). The Trustees’ independent consultant also provided additional quantitative and statistical analyses of certain Funds, including risk and performance return assessments as compared to the Funds’ objectives, benchmarks, and peers. Before voting on the Management Agreements, the Trustees reviewed the Management Agreements with representatives of the Adviser, counsel to the Funds, and independent legal counsel to the Trustees, and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the Management Agreements. The Trustees also discussed the Management Agreements with independent legal counsel in executive sessions at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Management Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Funds throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighting the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from each Fund under the applicable Management Agreement was fair and reasonable under the circumstances, and determined that the continuance of each Management Agreement was in the best interests of each Fund and its shareholders.
| J.P. Morgan Exchange-Traded Funds | |
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of services provided to each Fund under the applicable Management Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel, including personnel changes, if any;
• The qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund, including personnel changes, if any;
• The investment strategy for each Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy for each Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
• The administration services provided by the Adviser in its role as Administrator;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Funds and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Funds;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates from providing services to each Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser and reviewed with the Board. The Trustees also recognized that it is difficult to make direct comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, and taking into consideration the factors noted above, the Trustees concluded that the profitability to the Adviser under each Management Agreement was not unreasonable in light of the services and benefits provided to each Fund.
The Trustees also considered the fees earned by JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, for custody, fund accounting and other related services for each Fund, and the profitability of the arrangements to JPMCB.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees considered that the J.P. Morgan Funds' operating accounts are held at JPMCB, which, as a result, will receive float benefits for certain J.P. Morgan Funds, as applicable. The Trustees also noted that the Adviser supports a diverse set of products and services, which benefits the Adviser by allowing it to leverage its infrastructure to serve additional clients, including benefits that may be received by the Adviser and its affiliates in connection with the Fund’s potential investments in other funds advised by the Adviser. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser, as well as the Adviser’s use of affiliates to provide other services and the benefits to such affiliates of doing so. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Funds.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited) (continued)
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from potential economies of scale. The Trustees considered that under the Management Agreements, the Adviser provides advisory and administrative services and is responsible for substantially all expenses of each Fund under a “unitary fee structure.” The Trustees noted that unitary management fee for each Fund does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses are limited even when a Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under the Management Agreement in the future. The Trustees also concluded that all Funds benefited from the Adviser’s reinvestment in its operations to serve the Funds and their shareholders. The Trustees noted that the Adviser’s reinvestment ensures sufficient resources in terms of personnel and infrastructure to support the Funds. After considering the factors identified above, the Trustees concluded that the Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of management services and fee rates offered to other clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for investment management styles substantially similar to that of each Fund. The Trustees considered the complexity of investment management for registered investment companies relative to the Adviser’s other clients and noted differences, as applicable, in the fee structure and the regulatory, legal and other risks and responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered investment company involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the applicable registered investment company, typically bears the sub-advisory fee and that many responsibilities related to the advisory function are typically retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees considered each Fund is a “passive” ETF whose objective is to closely correspond, before fees and expenses, to the performance of its benchmark index. The Trustees receive
and consider information about each Fund’s performance throughout the year. The Trustees considered each Fund’s investment strategy and processes, portfolio management teams and competitive positioning against peer funds, as identified by Broadridge and/or management. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark index. The Trustees also discussed the performance and the investment strategy of each Fund with the Adviser. Based on these discussions and various other factors, the Trustee concluded each Fund’s performance was satisfactory.
Management Fees and Expense Ratios
The Trustees considered the contractual management fee rate paid by each Fund to the Adviser and compared the rate to the information prepared by Broadridge concerning management fee rates paid by other funds in the same Broadridge category as each Fund. This review included ranking of each Fund within an expense universe comprised of funds with the same Morningstar investment classification and objective (the “Universe”), as well as a subset of funds within the Universe (the “Peer Group”). The Trustees reviewed a description of Broadridge’s methodology for selecting funds in the Peer Group and Universe, as applicable, and noted that the Peer Group and/or Universe quintile rankings were not calculated if the number of funds in the Peer Group and/or Universe did not meet a predetermined minimum. The Trustees also reviewed information about other expenses and the total expense ratio for each Fund. The Trustees compared the management fee for each Fund to fees charged to mutual funds and/or institutional accounts with similar investment objectives or in similar asset classes managed by the Adviser. The Trustees recognized that it can be difficult to make comparisons of management fees because there are variations in the services that are included in the fees paid by other funds. The Trustees’ determinations as a result of the review of each Fund’s management fees and expense ratios are summarized below:
The Trustees noted that the JPMorgan BetaBuilders Canada ETF’s net management fee and actual total expenses were in the first quintile of the Universe. Broadridge did not calculate quintile rankings for the Peer Group for this Fund due to the limited number of funds in the Peer Group. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF’s net management fee and actual total expenses were in the first quintile of the Universe. Broadridge did not calculate quintile rankings for the Peer Group for this Fund due to the limited number of funds in the Peer Group.
| J.P. Morgan Exchange-Traded Funds | |
After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders Europe ETF’s net management fee and actual total expenses were in the first quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders International Equity ETF’s net management fee and actual total expenses were in the second and first quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders Japan ETF’s net management fee was in the second quintile of both the Peer Group and Universe, and that the actual total expenses were in the first and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders U.S. Equity ETF’s net management fee and actual total expenses were in the first quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders U.S. Mid Cap Equity ETF’s net management fee and actual total expenses were in the third and first quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan BetaBuilders U.S. Small Cap Equity ETF’s net management fee was in the fourth and second quintiles of the Peer Group and Universe, respectively, and that the actual total expenses were in the third and first quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Carbon Transition U.S. Equity ETF’s net management fee and actual total expenses were in the fourth and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Diversified Return Emerging Markets Equity ETF’s net management fee was in the third quintile of both the Peer Group and Universe, and that the actual total expenses were in the second quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Diversified Return International Equity ETF’s net management fee and actual total expenses were in the third and fourth quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Diversified Return U.S. Equity ETF’s net management fee and actual total expenses were in the first and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Diversified Return U.S. Mid Cap Equity ETF’s net management fee and actual total expenses were in the first and third quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Diversified Return U.S. Small Cap Equity ETF’s net management fee was in the second and third quintiles of the Peer Group and Universe, respectively, and that the actual total expenses were in the third quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan U.S. Momentum Factor ETF’s net management fee and actual total expenses were in the first and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited) (continued)
light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan U.S. Quality Factor ETF’s net management fee and actual total expenses were in the first and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan U.S. Value Factor ETF’s net management fee and actual total expenses were in the third and second quintiles of the Peer Group and Universe, respectively. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INITIAL MANAGEMENT AGREEMENT(Unaudited)
JPMorgan BetaBuilders Emerging Markets Equity ETF
On November 15-17, 2022, the Board of Trustees (the “Board” or the “Trustees”) held meetings and approved the initial management agreement (the “Management Agreement” ) for the JPMorgan BetaBuilders Emerging Markets Equity ETF (the “Fund”). The meetings were held by videoconference in reliance upon the Division of Investment Management Staff Statement on Fund Board Meetings and Unforeseen or Emergency Circumstances Related to Coronavirus Disease 2019. The Management Agreement was approved by a majority of the Trustees who are not “Interested Persons” (as defined in the Investment Company Act of 1940) of any party to the Management Agreement or any of their affiliates. In connection with the approval of the Management Agreement, the Trustees reviewed written materials prepared by J.P. Morgan Investment Management Inc. (the “Adviser”) and received oral presentations from Adviser personnel. Before voting on the proposed Management Agreement, the Trustees reviewed the Management Agreement with representatives of the Adviser and with counsel to the Fund and independent legal counsel to the Trustees and received a memorandum from independent legal counsel discussing the legal standards for their consideration of the proposed Management Agreement. They also considered information they received from the Adviser over the course of the year in connection with their oversight of other funds managed by the Adviser. The Trustees also discussed the proposed Management Agreement with independent legal counsel in executive session at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve the Management Agreement is provided below. The Trustees considered information provided with respect to the Fund and the approval of the Management Agreement. Each Trustee attributed his or her own evaluation of the significance of the various factors, and no factor alone was considered determinative. The Trustees determined that the proposed compensation to be received by the Adviser from the Fund under its Management Agreement was fair and reasonable and that initial approval of the Management Agreement was in the best interests of the Fund and its potential shareholders.
Summarized below are the material factors considered and discussed by the Trustees in reaching their conclusions:
Nature, Extent and Quality of Services Provided by the Adviser
In connection with the approval of the Fund’s initial Management Agreement, the Trustees considered the materials furnished specifically in connection with the approval of the Management Agreement, as well as other relevant information
furnished for the Trustees, regarding the nature, extent, and quality of services provided by the adviser. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel;
• The qualifications, backgrounds and responsibilities of the portfolio management team to be primarily responsible for the day-to-day management of the Fund;
• The investment strategy for the Fund, and the infrastructure supporting the portfolio management team;
• Information about the structure and distribution strategy of the Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
• The administration services to be provided by the Adviser under the Management Agreement;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Fund and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Fund;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of services to be provided to the Fund by the Adviser.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits expected to be received by the Adviser and its affiliates as a result of their relationship with the Fund. Additionally, the Trustees considered that any fall-out or ancillary benefits would be comparable to those related to the other funds in the complex. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Fund.
The Trustees also considered the benefits the Adviser is expected to receive as the result of the roles JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, plays as custodian, fund accountant and transfer agent for the Fund, including the profitability of those arrangements to JPMCB.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INITIAL MANAGEMENT AGREEMENT(Unaudited) (continued)
Economies of Scale
The Trustees considered the extent to which the Fund may benefit from potential economies of scale. The Trustees considered that under the Management Agreement, the Adviser will provide advisory and administrative services and will be responsible for substantially all expenses of the Fund under a “unitary fee structure.” The Trustees noted that the proposed unitary management fee for the Fund does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses would be limited even when the Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under its Management Agreement in the future. After considering the factors identified above, the Trustees concluded that the Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees considered the Adviser’s view that it does not manage other accounts with a substantially similar investment strategy as that of the Fund. Notwithstanding that fact, the Trustees received and considered information on fees charged by the Adviser for other accounts that share characteristics with the Fund.
Investment Performance
The Trustees considered that the Fund is a “passive” ETF whose objective is to closely correspond, before fees and expenses, to the performance of its benchmark index. The Trustees
considered the Fund’s investment strategy and processes, the portfolio management team and competitive positioning against identified peer funds and concluded that the prospects for competitive future performance were acceptable.
Management Fees and Expense Ratios
The Trustees considered the contractual management fee rate that will be paid by the Fund to the Adviser and compared that rate to information prepared by Broadridge Investor Communications Solutions Inc. (“Broadridge”), an independent provider of investment company data, providing management fee rates paid by other funds in the same Morningstar category as the Fund. The Trustees also considered the fees paid to JPMCB, for custody, fund accounting, transfer agency and other related services for the Fund and the profitability of these arrangements to JPMCB.
The Trustees considered how the Fund will be positioned against peer funds, as identified by management and/or Broadridge, as well as how the peer funds included in the Broadridge data differed from the Funds. The Trustees also noted that because the Fund was not yet operational, no profitability information was available. After considering the factors identified above and other factors, in light of the information, the Trustees concluded that the Fund’s proposed management fee was fair and reasonable.
| J.P. Morgan Exchange-Traded Funds | |
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2023. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2023. The information necessary to complete your income tax returns for the calendar year ending December 31, 2023 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended October 31, 2023:
| Dividends
Received
Deduction |
JPMorgan BetaBuilders U.S. Equity ETF | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | |
JPMorgan Carbon Transition U.S. Equity ETF | |
JPMorgan Diversified Return U.S. Equity ETF | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | |
JPMorgan U.S. Momentum Factor ETF | |
JPMorgan U.S. Quality Factor ETF | |
JPMorgan U.S. Value Factor ETF | |
Qualified Dividend Income (QDI)
Each Fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions and foreign tax credits (if applicable) treated as qualified dividends for the fiscal year ended October 31, 2023:
| |
JPMorgan BetaBuilders Canada ETF | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | |
JPMorgan BetaBuilders Emerging Markets Equity ETF | |
JPMorgan BetaBuilders Europe ETF | |
JPMorgan BetaBuilders International Equity ETF | |
JPMorgan BetaBuilders Japan ETF | |
JPMorgan BetaBuilders U.S. Equity ETF | |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | |
JPMorgan Carbon Transition U.S. Equity ETF | |
JPMorgan Diversified Return Emerging Markets Equity ETF | |
JPMorgan Diversified Return International Equity ETF | |
| |
JPMorgan Diversified Return U.S. Equity ETF | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | |
JPMorgan U.S. Momentum Factor ETF | |
JPMorgan U.S. Quality Factor ETF | |
JPMorgan U.S. Value Factor ETF | |
Section 199A Income
The following Funds had the following amount, or maximum allowable amount, of ordinary income distributions treated as 199A dividends for the fiscal year ended October 31, 2022.
| |
JPMorgan BetaBuilders U.S. Mid Cap Equity ETF | |
JPMorgan BetaBuilders U.S. Small Cap Equity ETF | |
JPMorgan Diversified Return U.S. Equity ETF | |
JPMorgan Diversified Return U.S. Mid Cap Equity ETF | |
JPMorgan Diversified Return U.S. Small Cap Equity ETF | |
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2023, the following Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses are as follows or amounts as finally determined:
| Total Foreign
Source Income | |
JPMorgan BetaBuilders Canada ETF | | |
JPMorgan BetaBuilders Developed Asia Pacific ex-Japan ETF | | |
JPMorgan BetaBuilders Emerging Markets Equity ETF | | |
JPMorgan BetaBuilders Europe ETF | | |
JPMorgan BetaBuilders International Equity ETF | | |
JPMorgan BetaBuilders Japan ETF | | |
JPMorgan Diversified Return Emerging Markets Equity ETF | | |
JPMorgan Diversified Return International Equity ETF | | |
| J.P. Morgan Exchange-Traded Funds | |
THIS PAGE IS INTENTIONALLY LEFT BLANK
J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the Funds.
Contact J.P. Morgan Exchange-Traded Funds at 1-844-457-6383 (844-4JPM ETF) for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The prospectus contains this and other information about the fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by visiting www.sipc.org or by calling SIPC at 202-371-8300.
Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC as an exhibit to its report on Form N-PORT. The Funds' Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. Each Fund's quarterly holdings can be found by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Effective January 24, 2023, the SEC adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
A description of each Fund's policies and procedures with respect to the disclosure of each Fund's holdings is available in the prospectus and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-844-457-6383 and on the Funds' website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Adviser. A copy of the Funds' voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds' website at www.jpmorganfunds.com no later than August 31 of each year. The Funds' proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
© JPMorgan Chase & Co., 2023. All rights reserved. October 2023.
AN-ETF-1023
Annual Report
J.P. Morgan Exchange-Traded Funds
October 31, 2023
| | |
JPMorgan Active China ETF | | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | | |
JPMorgan Global Select Equity ETF | | The NASDAQ Stock Market LLC |
JPMorgan Hedged Equity Laddered Overlay ETF | | |
JPMorgan International Growth ETF | | |
JPMorgan International Value ETF | | The NASDAQ Stock Market LLC |
CONTENTS
Investments in a Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when a Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of a Fund or the securities markets.
Prospective investors should refer to the Funds’ prospectuses for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Exchange-Traded Funds at (844) 457-6383 for a prospectus containing more complete information about a Fund, including management fees and other expenses. Please read it carefully before investing.
Shares are bought and sold throughout the day on an exchange at market price (not at net asset value) through a brokerage account, and are not individually subscribed and redeemed from a Fund. Shares may only be subscribed and redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
President's LetterDecember 14, 2023 (Unaudited)
Dear Shareholder,
While the U.S. economy generally performed well this year, global economic growth has been uneven in the face of elevated interest rates and heightened geopolitical tensions. Equity markets largely outperformed fixed income markets for the twelve months ended October 31, 2023, though rising yields lifted investor demand for certain types of bonds.
|
"The strong performance of financial markets in 2023 created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.” — Brian S. Shlissel
|
Inflationary pressures have receded sufficiently so far that the U.S. Federal Reserve declined to raise interest rates since September 2023 and signaled it may reduce rates three times in 2024. Both the European Central Bank and the Bank of England also declined to raise interest rates in the third quarter of 2023. Financial markets largely responded positively to the central banks’ policy stances, though the view that interest rates could remain “higher for longer” appeared to temper investor optimism.
Overall, corporate earnings and revenues within developed markets generally continued to grow through the first three quarters of 2023, though certain surveys indicated many businesses anticipate demand to slow next year. Emerging markets experienced a wider dispersion in economic performance and corporate results, partly due to slower economic growth in China, post-pandemic changes to global supply chains and elevated debt servicing costs.
While some assert that the risk of economic recession has receded in 2023, the risk remains. China’s struggling property sector could further undermine economic growth and spill over to certain commodity exporting nations. Additionally, there is no clear timing with regard to the resolution of the war in Ukraine, which continues to impact global energy and grain supplies. The Israel-Hamas conflict has the potential to both widen militarily and to impact international trade and prices for energy and food. However, financial markets have generally continued to function without major disruptions during the period.
The strong performance of financial markets has created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.
Our suite of investment solutions seeks to provide investors with the ability to build durable portfolios that meet their financial goals, regardless of macroeconomic and geopolitical uncertainties.
Sincerely,
Brian S. Shlissel
President, J.P. Morgan Exchange-Traded Funds
J.P. Morgan Asset Management
1-844-4JPM-ETF or jpmorgan.com/etfs for more information
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds
MARKET OVERVIEWTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
Equity markets continued to outperform bond markets during the period, generating positive returns largely due to gains made during the first half of 2023. Following a surge in U.S. equity prices, investors largely sought lower equity valuations in international markets in the second half of the period.
Overall, equities in international developed markets outperformed both emerging market and U.S. equities. Growth stocks and large capitalization stocks largely outperformed value stocks and mid cap and small cap stocks. Within fixed income markets, emerging markets debt and lower-rated bonds in developed markets generally outperformed U.S. Treasury bonds.
While the U.S. Federal Reserve, the European Central Bank and The Bank of England continued to raise interest rates at regular intervals through the first half of 2023, declining inflationary pressures allowed all three central banks to withhold further increases at the end of the reporting period.
Corporate earnings were generally better-than-expected for most of the period but results for the third quarter of 2023 showed some slowing in earnings and revenue growth. Tight labor markets in the U.S. eased somewhat in the final months of the period and the jobless rate rose to 3.8% in October 2023, which raised investor expectations that inflation would continue to slow.
Global energy prices largely fell during the period amid slowing demand from China and leading industrialized nations. Crude oil prices spiked briefly in September 2023 when Saudi Arabia and Russia extended production cuts and again in early October at the outbreak of the Israel-Hamas conflict. However, global petroleum prices receded by the end of the period as economic data, including U.S. gasoline consumption, continued to indicate slowing global demand.
Notably, financial sector stocks were roiled by the collapse of Silicon Valley Bank in late March 2023, followed closely by the failures of Signature Bank and Credit Suisse. In each case, government regulators moved to prevent the erosion of consumer and investor confidence in the banking system.
For the twelve months ended October 31, 2023, the MSCI EAFE Index returned 15.01%, the MSCI Emerging Markets Index returned 11.26% and the S&P 500 Index returned 10.14%.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Active China ETF
FUND COMMENTARYFOR THE PERIOD March 15, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited)
| |
| |
| |
MSCI China All Shares Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Active China ETF (the “Fund”) seeks to provide long-term capital appreciation.
INVESTMENT APPROACH
The Fund invests primarily in equity securities and equity-related instruments that are economically tied to China and seeks to add value through an investment approach primarily driven by bottom-up stock selection, while being mindful of macro and policy considerations. The Fund leverages research analysts with local expertise to identify what the sub-adviser believes are attractively valued industry leaders.
HOW DID THE FUND PERFORM?
For the period from inception on March 15, 2023 to October 31, 2023, the Fund had a negative absolute return and underperformed the MSCI China All Shares Index (the “Benchmark”).
The Fund’s security selection in the financials and consumer discretionary sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the communication services sector and its underweight position in the industrials sector were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Hundsun Technologies Inc., ENN Energy Holdings Ltd. and Oppein Home Group Inc. Shares of Hundsun Technologies, a software developer based in Hangzhou, fell amid investor concerns that
slower economic growth in China could reduce customer spending on new projects. Shares of ENN Energy Holdings, a natural gas utility based in Langfang, fell after the company reported weaker-than-expected earnings amid declining demand during the period. Shares of Oppein Home Group, a cabinets, windows and furniture manufacturer based in Guangzhou, fell amid slowing consumer demand in China during the period.
Leading individual contributors to relative performance included the Fund’s overweight positions in NetEase Inc. and China Yangtze Power Co., and its underweight position in Li-Ning Co. Shares of NetEase, a provider of online games, music and services based in Hangzhou, rose amid better-than-expected earnings during the period. Shares of China Yangtze Power, a hydroelectric utility based in Beijing, rose as higher river volumes during the period fueled higher electricity generation. Shares of Li-Ning, a Beijing sporting goods and apparel retailer not held in the Fund, fell amid slowing economic growth and consumer spending in China during the period.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest overweight allocations relative to the Benchmark were to the information technology and communication services sectors and its largest underweight allocations were to the industrials and financials sectors.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Active China ETF
FUND COMMENTARYFOR THE PERIOD March 15, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $40.61 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the inception date net asset value, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $40.77.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Tencent Holdings Ltd. (China) | |
| Alibaba Group Holding Ltd. (China) | |
| Kweichow Moutai Co. Ltd., Class A (China) | |
| China Merchants Bank Co. Ltd., Class H (China) | |
| | |
| China Construction Bank Corp., Class H (China) | |
| | |
| Ping An Insurance Group Co. of China Ltd., Class H (China) | |
| Haier Smart Home Co. Ltd., Class H (China) | |
| China Yangtze Power Co. Ltd., Class A (China) | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| J.P. Morgan Exchange-Traded Funds | |
TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | CUMULATIVE SINCE INCEPTION |
JPMorgan Active China ETF | | |
| | |
| | |
LIFE OF FUND PERFORMANCE (3/15/23 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on March 15, 2023.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Active China ETF and MSCI China All Shares Index (net total return) from March 15, 2023 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI China All Shares Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI China All Shares Index (net total return) is a free float-adjusted market capitalization weighted index that is designed to measure the performance of large- and mid-cap Chinese securities represented across China A-shares, B-shares, H-shares, Redchips, P-chips and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China. It is based on the concept of the integrated MSCI China equity universe with China A-shares included. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
Because the Fund invests at least 80% of the value of its assets in equity securities and equity-related instruments that are tied economically to China, it presents different risks than funds that do not so invest. Investments in Mainland China, Hong Kong, Taiwan and Macau are subject to significant legal, regulatory, monetary and economic risks, as well as the potential for regional and global conflicts, including actions that are contrary to the interests of the U.S.
Chinese operating companies sometimes rely on Variable Interest Entity (VIE) structures to raise capital from non-Chinese investors, even though such arrangements are not formally recognized under Chinese law. VIE structures are used due to Mainland Chinese government prohibitions on foreign ownership of companies in certain industries and it is not clear that the contracts are enforceable or that the structures will otherwise work as intended. There may also be conflicts of interest between the legal owners of the Mainland Chinese company and non-Chinese investors (such as the Fund). It is unclear whether the Mainland China government will withdraw its implicit acceptance of the VIE structure, or whether any new laws, rules or regulations relating to VIE structures will be adopted or, if adopted, what impact they would have on the interests of non-Chinese investors. The market value of the Fund’s associated portfolio holdings would likely fall, causing substantial investment losses.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI Emerging Markets Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan ActiveBuilders Emerging Markets Equity ETF (the “Fund”) seeks to provide long-term capital appreciation.
INVESTMENT APPROACH
The Fund invests primarily in equity securities and equity-related instruments that are tied economically to emerging markets and seeks to construct a portfolio of holdings that will outperform the MSCI Emerging Markets Index (the “Benchmark”) over time while maintaining similar risk characteristics. The Fund allocates investments to the adviser’s actively managed emerging market equity strategies, including country, region and style strategies among others, and may invest across all market capitalizations.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund generated a positive absolute return and underperformed the Benchmark.
The Fund’s security selection in the consumer staples and industrials sectors was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in the information technology sector and its underweight position in the materials sector were leading contributors to relative performance.
By country, the Fund’s security selection in China and Brazil was a leading detractor from performance relative to the Benchmark, while the Fund’s security selection in Taiwan and its underweight position in Saudi Arabia were leading contributors to relative performance.
Leading individual detractors from relative performance included the Fund’s overweight positions in Lojas Renner SA
and HDFC Bank Ltd., and its underweight position in Tencent Holdings Ltd. Shares of Lojas Renner, a Brazilian department store chain, fell amid weakness in earnings and investor concerns about the company’s outlook for growth. Shares of HDFC Bank, an Indian financial services provider, fell after the company said a planned merger would lower profit margins and increase its ratio of non-performing loans. Shares of Tencent Holdings, a Chinese e-commerce provider, rose in early 2023 amid sales growth and a broad rebound in China’s technology sector.
Leading individual contributors to relative performance included the Fund’s overweight positions in NetEase Inc., Global Unichip Corp. and Accton Technology Corp. Shares of NetEase, a Chinese online services platform provider, rose after the company reported better-than-expected earnings for the second quarter of 2023. Shares of Global UniChip, a Taiwanese semiconductor design services provider, rose amid investor expectations that demand for artificial intelligence technologies would increase global demand for semiconductors. Shares of Accton Technology, a Taiwanese maker of data networking and communications equipment, benefitted from increased global demand for artificial intelligence technologies.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest overweight allocations relative to the Benchmark were to the consumer staples and information technology sectors and its largest underweight allocations were to the materials and communication services sectors. By country, the Fund’s largest overweight allocations were to Mexico and Taiwan and its
largest underweight positions were in Saudi Arabia and India.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $33.47 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the Cboe BZX Exchange, Inc. As of October 31, 2023, the closing price was $33.45.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Taiwan Semiconductor Manufacturing Co. Ltd. (Taiwan) | |
| Samsung Electronics Co. Ltd. (South Korea) | |
| Tencent Holdings Ltd. (China) | |
| Alibaba Group Holding Ltd. (China) | |
| | |
| | |
| SK Hynix, Inc. (South Korea) | |
| HDFC Bank Ltd., ADR (India) | |
| Tata Consultancy Services Ltd. (India) | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (3/10/21 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on March 10, 2021.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan ActiveBuilders Emerging Markets Equity ETF and MSCI Emerging Markets Index (net total return) from March 10, 2021 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI Emerging Markets Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. MSCI Emerging Markets Index (net total return) is a free float-adjusted market
capitalization-weighted index that is designed to measure the performance of large- and mid-cap stocks in emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Global Select Equity ETF
FUND COMMENTARYFOR THE PERIOD September 13, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited)
| |
| |
| |
MSCI World Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Global Select Equity ETF (the “Fund”) seeks to provide long-term capital appreciation.
INVESTMENT APPROACH
The Fund invests primarily in large-capitalization stocks across developed and emerging markets, and seeks companies that the Fund’s adviser believes are attractively valued, possess strong free cash flow and have the potential for sustainable earnings growth, while seeking to maintain regional geographic and sector exposures similar to those of the MSCI World Index (the “Benchmark”).
HOW DID THE FUND PERFORM?
For the period from inception on September 13, 2023 to October 31, 2023, the Fund had a negative absolute return and outperformed the Benchmark.
By sector, the Fund’s security selection in the insurance and health services & systems sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the technology - semiconductors & hardware sector and the property sector was a leading detractor from relative performance.
By country or region, the Fund’s security selection in the U.S. and in Europe, excluding the U.K., was a leading contributor to performance relative to the Benchmark, while the Fund’s out-of-Benchmark allocation to emerging markets was the sole regional detractor from relative performance.
The Fund’s overweight positions in CME Group Inc., Progressive Corp. and UnitedHealth Group Inc. were leading contributors to
relative performance. Shares of CME Group, a provider of financial securities exchanges and data, rose amid increased trading volumes and better-than-expected earnings for the third quarter of 2023. Shares of Progressive, a property and casualty insurer, rose late in the period after the company reported better-than-expected results for the third quarter of 2023. Shares of UnitedHealth Group, a health insurance provider, rose after the company reported better-than-expected earnings and revenue for the third quarter of 2023.
The Fund’s overweight positions in Prologis Inc. and NexEra Energy Inc., and its underweight position in Apple Inc. were leading detractors from relative performance. Share of NextEra Energy, an electric utility, fell sharply in late September 2023 after the company lowered its growth forecast for its NextEra Energy Partners investment unit. Shares of Prologis, an industrial property real estate investment trust, fell amid a broader decline in the real estate sector late in the period. Shares of Apple, a diversified information technology provider, rose amid a broad surge in technology sector stocks.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest allocations were to the technology – semiconductors & hardware sector and the media sector, while the Fund’s smallest allocations were to the telecommunications sector and the automobiles & auto parts sector. The Fund had no holdings in the transportation sector. The Fund’s largest regional allocations were to the U.S. and Europe, excluding the U.K., while its smallest allocations were
to Canada and the Pacific, excluding Japan.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Global Select Equity ETF
FUND COMMENTARYFOR THE PERIOD September 13, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $46.06 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the inception date net asset value, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the The NASDAQ Stock Market LLC. As of October 31, 2023, the closing price was $46.13.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | |
| Meta Platforms, Inc., Class A | |
| | |
| Mastercard, Inc., Class A | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | CUMULATIVE SINCE INCEPTION |
JPMorgan Global Select Equity ETF | | |
| | |
| | |
LIFE OF FUND PERFORMANCE (9/13/23 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 13, 2023.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Global Select Equity ETF and the MSCI World Index (net total return) from September 13, 2023 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI World Index Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI World Index (net total return) is a free float-adjusted market capitalization weighted index that is designed to
measure the performance of large- and mid- cap stocks in developed markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Hedged Equity Laddered Overlay ETF
FUND COMMENTARYFOR THE PERIOD September 28, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited)
| |
| |
| |
| |
ICE BofA 3-Month US Treasury Bill Index | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan Hedged Equity Laddered Overlay ETF (the “Fund”) seeks to provide capital appreciation.
INVESTMENT APPROACH
The Fund invests in a portfolio of U.S. large capitalization stocks, while employing a laddered options strategy that seeks to reduce downside risk in falling markets. The Fund’s adviser constructs the underlying equity portfolio through a proprietary process that seeks to identify overvalued and undervalued stocks, while maintaining characteristics similar to the S&P 500 Index (the “Benchmark”) and seeks to provide a majority of the Benchmark's returns with less volatility and less downside risk.
HOW DID THE FUND PERFORM?
For the period from inception on September 28, 2023 to October 31, 2023, the Fund outperformed the Benchmark and captured 61% of the Benchmark’s negative return with 59% of its volatility.
Relative to the Benchmark, the Fund’s security selection in the financials and energy sectors was a leading contributor to performance, while the Fund’s security selection in the technology and telecommunications sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight positions in RTX Corp. (formerly Raytheon Technologies) and Diamondback Energy Inc. and its
underweight position in Caterpillar Inc. Shares of RTX, an aerospace and defense manufacturer, rose amid investor expectations the company would benefit from U.S. miliary aid to Ukraine and Israel. Shares of Diamondback Energy, an independent petroleum and natural gas producer, rose on investor expectations that the company could become an acquisition target amid consolidation in the energy sector. Shares of Caterpillar, a construction vehicles and equipment manufacturer not held in the Fund, fell amid investor concerns about future revenue growth.
Leading individual detractors from relative performance included the Fund’s overweight positions in NXP Semiconductors NV, Texas Instruments Inc. and Analog Devices Inc. Shares of NXP Semiconductors, a Dutch computer chip manufacturer, fell amid investor uncertainty about global demand for semiconductors. Shares of Texas Instruments, a semiconductor manufacturer, fell after the company reported weaker-than-expected revenue for the third quarter of 2023 and issued a weaker-than-expected forecast for the fourth quarter of 2023. Shares of Analog Devices, a semiconductor manufacturer, fell after the company reported lower-than-expected earnings and revenue for the third quarter of 2023.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest allocations were to the technology and media sectors and its smallest allocations were to the telecommunications sector and real
estate investment trusts.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $49.28 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the inception date net asset value, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $49.28.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| Meta Platforms, Inc., Class A | |
| | |
| | |
| | |
| Mastercard, Inc., Class A | |
| | |
PORTFOLIO COMPOSITION BY SECTOR
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Hedged Equity Laddered Overlay ETF
FUND COMMENTARYFOR THE PERIOD September 28, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited) (continued)
TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | CUMULATIVE SINCE INCEPTION |
JPMorgan Hedged Equity Laddered Overlay ETF | | |
| | |
| | |
LIFE OF FUND PERFORMANCE (9/28/23 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 28, 2023.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Hedged Equity Laddered Overlay ETF, the S&P 500 Index and the ICE BofA 3-Month US Treasury Bill Index from September 28, 2023 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the S&P 500 Index and the ICE BofA 3-Month US Treasury Bill Index does not reflect the deduction of expenses associated with an exchange-traded fund and approximates the minimum
possible dividend reinvestment of the securities included in the benchmarks, if applicable. The S&P 500 Index is an unmanaged index generally representative of the performance of large companies in the U.S. stock market. The ICE BofA 3-Month US Treasury Bill Index is comprised of a single issue purchased at the beginning of the month and held for a full month. Each month the ICE BofA 3-Month US Treasury Bill Index is rebalanced and the issue selected is the outstanding Treasury Bill that matures closest to, but not beyond, 3 months from the rebalancing date. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Growth ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI ex USA Growth Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan International Growth ETF (the “Fund”) seeks long-term capital appreciation.
INVESTMENT APPROACH
The Fund employs a fundamental bottom-up approach that seeks to identify companies with strong growth and quality characteristics at attractive valuations. The Fund invests primarily in equity securities of foreign companies.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund outperformed the MSCI ACWI ex-USA Growth Index (the “Benchmark”).
The Fund’s security selection in the financials and materials sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the consumer discretionary and industrials sectors was a leading detractor from relative performance.
Leading individual contributors to relative performance included the Fund’s overweight position in Taiwan Semiconductor Manufacturing Co. and its out-of-Benchmark positions in NU Holdings Ltd. and Cadence Design Systems Inc. Shares of Taiwan Semiconductor Manufacturing rose amid better-than-expected earnings for the third quarter of 2023 and an upbeat earnings forecast for the fourth quarter of 2023. Shares of NU Holdings, a Brazilian digital financial services
provider, rose after the company reported growth in earnings and revenue for the second quarter of 2023. Shares of Cadence Design Systems, an applications software developer, rose after the company reported better-than-expected earnings and revenue for the third quarter of 2023.
Leading individual detractors from relative performance included the Fund’s underweight position in Meituan, and its overweight positions in Cie. Financiere Richemont SA and Canadian National Railway Co. Shares of Meituan, a Chinese food-delivery and e-commerce retailer, fell after the company reported a weaker-than-expected earnings forecast for 2023 and amid investor concerns about the impact of slower economic growth in China. Shares of Financiere Richemont, a Swiss brand-name luxury goods maker, fell amid a decline in consumer spending across Europe. Shares of Canadian National Railway, a freight rail operator, underperformed amid a retreat in commodities prices during the period and investor expectations for lower 2023 earnings among large freight railroads.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest allocations were to the industrials and information technology sectors and the smallest allocations were to the utilities and energy sectors. The Fund had no holdings in the real estate sector.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Growth ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $52.13 as of October 31, 2023.
***
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $52.11.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | |
| Tencent Holdings Ltd. (China) | |
| | |
| ASML Holding NV (Netherlands) | |
| Novo Nordisk A/S, Class B (Denmark) | |
| | |
| | |
| | |
| LVMH Moet Hennessy Louis Vuitton SE (France) | |
| AstraZeneca plc (United Kingdom) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan International Growth ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (5/20/20 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on May 20, 2020.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan International Growth ETF and the MSCI ACWI ex USA Growth Index (net total return) from May 20, 2020 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI ex USA Growth Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmarks, if applicable. The MSCI ACWI ex USA Growth Index (net total return) is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of growth-oriented large- and
mid-cap stocks in developed and emerging markets, excluding the U.S. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Value ETF
FUND COMMENTARYFOR THE PERIOD September 13, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI ex USA Index (net total return) | |
MSCI ACWI ex USA Value Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan International Value ETF (the “Fund”) seeks to provide long-term capital appreciation.
INVESTMENT APPROACH
The Fund primarily invests in stocks of foreign developed and emerging market countries across all market capitalizations. The Fund’s adviser employs a global network of research analysts and seeks companies with what it believes are attractive valuations.
HOW DID THE FUND PERFORM?
For the period from inception on September 13, 2023 to October 31, 2023, the Fund had a negative absolute return and outperformed the MSCI ACWI ex USA Value Index (the “Index”).
The Fund’s security selection in the banks and energy sectors was a leading contributor to performance relative to the Index, while the Fund’s security selection in the automobiles & components sector and the financial services sector were leading detractors from relative performance.
By region, the Fund’s security selection in Europe, excluding the U.K., and in emerging markets was a leading contributor to performance relative to the Index, while the Fund’s underweight allocation to the U.K. was the sole detractor from relative performance.
Leading individual contributors to relative performance included its overweight positions in Novartis AG, Stanmore Resources Ltd. and CSPC Pharmaceutical Group Ltd. Shares of
Novartis, a Swiss pharmaceuticals producer, rose amid consecutive quarters of better-than-expected earnings and ahead of its planned spinoff of its Sandoz unit. Shares of Stanmore Resources, an Australian coal producer, rose amid investor expectations that the company could be acquired amid consolidation in the global mining industry. Shares of CSPC Pharmaceutical Group, a Chinese drug manufacturer, rose after regulators approved the company’s COVID vaccine in China.
Leading individual detractors from relative performance included the Fund’s overweight positions in Sandoz, Doosan Bobcat Inc. and CI Financial Corp. Shares of Sandoz Group AG, a Swiss manufacturer of generic and biosimilar pharmaceuticals, fell following its early October debut on the Swiss stock exchange. Shares of Doosan Bobcat, a South Korean manufacturer of construction vehicles, fell after the company issued a product safety recall for a seated lawn mower. Shares of CI Financial, a Canadian financial assets manager, fell after reporting monthly declines in total asset under management.
HOW WAS THE FUND POSITIONED?
During the reporting period, the Fund’s largest allocations were to the banks and energy sectors and it had no allocations to the consumer staples, distribution & retail and the household products & personal products sectors. By region, the Fund’s largest allocations were to Europe, excluding the U.K., and emerging markets and its smallest allocations were to the Pacific, excluding Japan, and North America.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $46.01 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the inception date net asset value, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the The NASDAQ Stock Market LLC. As of October 31, 2023, the closing price was $46.22.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| Novartis AG (Registered) (Switzerland) | |
| Alibaba Group Holding Ltd. (China) | |
| Samsung Electronics Co. Ltd. (South Korea) | |
| TotalEnergies SE (France) | |
| HSBC Holdings plc (United Kingdom) | |
| BHP Group Ltd. (Australia) | |
| | |
| Allianz SE (Registered) (Germany) | |
| Mitsubishi UFJ Financial Group, Inc. (Japan) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Value ETF
FUND COMMENTARYFOR THE PERIOD September 13, 2023 (FUND INCEPTION) THROUGH October 31, 2023 (Unaudited) (continued)
TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | CUMULATIVE SINCE INCEPTION |
JPMorgan International Value ETF | | |
| | |
| | |
LIFE OF FUND PERFORMANCE (9/13/23 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 13, 2023.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan International Value ETF, the MSCI ACWI ex USA Index (net total return) and the MSCI ACWI ex USA Value Index (net total return) from September 13, 2023 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI ex USA Index (net total return) and the MSCI ACWI ex USA Value Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and approximates the minimum possible dividend reinvestment of the securities included in the benchmarks, if applicable. The MSCI ACWI ex USA Index (net total return) is a free float-adjusted market capitalization weighted index that is designed to measure the performance of large- and mid- cap stocks in developed and emerging markets, excluding the U.S. Net total return
figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. The MSCI ACWI ex USA Value Index (net total return) captures large and mid cap securities exhibiting overall value style characteristics across 22 Developed and 24 Emerging Markets countries. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Active China ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Automobile Components — 1.7% |
Fuyao Glass Industry Group Co. Ltd., Class A | | |
|
China Construction Bank Corp., Class H | | |
China Merchants Bank Co. Ltd., Class H | | |
Postal Savings Bank of China Co. Ltd., Class H (a) | | |
| | |
|
Kweichow Moutai Co. Ltd., Class A | | |
Wuliangye Yibin Co. Ltd., Class A | | |
| | |
|
Alibaba Group Holding Ltd. * | | |
| | |
| | |
|
Skshu Paint Co. Ltd., Class A * | | |
Wanhua Chemical Group Co. Ltd., Class A | | |
| | |
Consumer Staples Distribution & Retail — 1.3% |
Yifeng Pharmacy Chain Co. Ltd., Class A | | |
Electrical Equipment — 1.0% |
Hongfa Technology Co. Ltd., Class A | | |
Electronic Equipment, Instruments & Components — 5.5% |
BOE Technology Group Co. Ltd., Class A | | |
Foxconn Industrial Internet Co. Ltd., Class A | | |
Sunny Optical Technology Group Co. Ltd. | | |
Xiamen Faratronic Co. Ltd., Class A | | |
| | |
|
| | |
|
Angel Yeast Co. Ltd., Class A | | |
Anjoy Foods Group Co. Ltd., Class A | | |
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | | |
| | |
|
| | |
Health Care Equipment & Supplies — 2.3% |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | | |
| | |
|
Health Care Providers & Services — 1.3% |
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A | | |
Hotels, Restaurants & Leisure — 4.8% |
H World Group Ltd., ADR * | | |
| | |
| | |
Household Durables — 4.7% |
Haier Smart Home Co. Ltd., Class H | | |
Jason Furniture Hangzhou Co. Ltd., Class A | | |
Oppein Home Group, Inc., Class A | | |
| | |
Independent Power and Renewable Electricity Producers — 2.5% |
China Yangtze Power Co. Ltd., Class A | | |
|
China Pacific Insurance Group Co. Ltd., Class H | | |
Ping An Insurance Group Co. of China Ltd., Class H | | |
| | |
Interactive Media & Services — 10.9% |
| | |
| | |
| | |
Life Sciences Tools & Services — 1.8% |
Wuxi Biologics Cayman, Inc. * (a) | | |
|
Jiangsu Hengli Hydraulic Co. Ltd., Class A | | |
Zhuzhou CRRC Times Electric Co. Ltd., Class A | | |
Zhuzhou CRRC Times Electric Co. Ltd., Class H | | |
| | |
|
Focus Media Information Technology Co. Ltd., Class A | | |
|
Baoshan Iron & Steel Co. Ltd., Class A | | |
Oil, Gas & Consumable Fuels — 3.2% |
China Petroleum & Chemical Corp., Class H | | |
PetroChina Co. Ltd., Class H | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Active China ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Asymchem Laboratories Tianjin Co. Ltd., Class A | | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | | |
| | |
Real Estate Management & Development — 1.8% |
| | |
Semiconductors & Semiconductor Equipment — 5.1% |
Flat Glass Group Co. Ltd., Class H * | | |
Hangzhou First Applied Material Co. Ltd., Class A | | |
LONGi Green Energy Technology Co. Ltd., Class A | | |
Montage Technology Co. Ltd., Class A | | |
| | |
|
Hundsun Technologies, Inc., Class A | | |
Kingdee International Software Group Co. Ltd. * | | |
| | |
Technology Hardware, Storage & Peripherals — 1.7% |
| | |
Textiles, Apparel & Luxury Goods — 1.5% |
Shenzhou International Group Holdings Ltd. | | |
Total Common Stocks
(Cost $12,644,831) | | |
Short-Term Investments — 0.1% |
Investment Companies — 0.1% |
JPMorgan Prime Money Market Fund Class IM, 5.49% (b) (c)(Cost $10,003) | | |
Total Investments — 100.0%
(Cost $12,654,834) | | |
Other Assets Less Liabilities — 0.0% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
|
| | |
Arcos Dorados Holdings, Inc., Class A | | |
| | |
B3 SA - Brasil Bolsa Balcao | | |
Banco Bradesco SA (Preference) | | |
| | |
| | |
BB Seguridade Participacoes SA | | |
Centrais Eletricas Brasileiras SA (Preference) | | |
Cia Energetica de Minas Gerais (Preference) | | |
| | |
Itau Unibanco Holding SA (Preference) | | |
| | |
| | |
| | |
| | |
| | |
Natura & Co. Holding SA * | | |
NU Holdings Ltd., Class A * | | |
Petroleo Brasileiro SA, ADR | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Transmissora Alianca de Energia Eletrica S/A | | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
|
|
Aier Eye Hospital Group Co. Ltd., Class A | | |
Airtac International Group | | |
Alibaba Group Holding Ltd. * | | |
Angel Yeast Co. Ltd., Class A | | |
Anhui Heli Co. Ltd., Class A | | |
Anjoy Foods Group Co. Ltd., Class A | | |
Anker Innovations Technology Co. Ltd., Class A | | |
Asymchem Laboratories Tianjin Co. Ltd., Class H (a) | | |
| | |
Bank of China Ltd., Class H | | |
Bank of Jiangsu Co. Ltd., Class A | | |
Bank of Ningbo Co. Ltd., Class A | | |
Baoshan Iron & Steel Co. Ltd., Class A | | |
Beijing Kingsoft Office Software, Inc., Class A | | |
Beijing Oriental Yuhong Waterproof Technology Co. Ltd., Class A | | |
BOE Technology Group Co. Ltd., Class A | | |
Budweiser Brewing Co. APAC Ltd. (a) | | |
BYD Electronic International Co. Ltd. | | |
Chacha Food Co. Ltd., Class A | | |
China CITIC Bank Corp. Ltd., Class H | | |
China Construction Bank Corp., Class H | | |
China Life Insurance Co. Ltd., Class H | | |
China Merchants Bank Co. Ltd., Class H | | |
China Overseas Land & Investment Ltd. | | |
China Pacific Insurance Group Co. Ltd., Class H | | |
China Petroleum & Chemical Corp., Class H | | |
China Resources Gas Group Ltd. | | |
China Resources Land Ltd. | | |
China Resources Mixc Lifestyle Services Ltd. (a) | | |
China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A | | |
China State Construction Engineering Corp. Ltd., Class A | | |
China United Network Communications Ltd., Class A | | |
China Yangtze Power Co. Ltd., Class A | | |
Chongqing Brewery Co. Ltd., Class A | | |
CITIC Securities Co. Ltd., Class H | | |
| | |
Contemporary Amperex Technology Co. Ltd., Class A | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
DaShenLin Pharmaceutical Group Co. Ltd., Class A | | |
Dongfang Electric Corp. Ltd., Class H | | |
| | |
Flat Glass Group Co. Ltd., Class H * | | |
Focus Media Information Technology Co. Ltd., Class A | | |
Foshan Haitian Flavouring & Food Co. Ltd., Class A | | |
Foxconn Industrial Internet Co. Ltd., Class A | | |
Fuyao Glass Industry Group Co. Ltd., Class H (a) | | |
GF Securities Co. Ltd., Class H | | |
Gree Electric Appliances, Inc. of Zhuhai, Class A | | |
Guangdong Investment Ltd. | | |
Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A | | |
| | |
Haier Smart Home Co. Ltd., Class H | | |
Hangzhou First Applied Material Co. Ltd., Class A | | |
Hefei Meiya Optoelectronic Technology, Inc., Class A | | |
Hongfa Technology Co. Ltd., Class A | | |
Huayu Automotive Systems Co. Ltd., Class A | | |
Hundsun Technologies, Inc., Class A | | |
Imeik Technology Development Co. Ltd., Class A | | |
Industrial & Commercial Bank of China Ltd., Class H | | |
Inner Mongolia Yili Industrial Group Co. Ltd., Class A | | |
JA Solar Technology Co. Ltd., Class A | | |
Jason Furniture Hangzhou Co. Ltd., Class A | | |
JD Health International, Inc. * (a) | | |
| | |
Jiangsu Hengli Hydraulic Co. Ltd., Class A | | |
Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A | | |
Jiangxi Copper Co. Ltd., Class H | | |
Joyoung Co. Ltd., Class A | | |
| | |
KE Holdings, Inc., Class A | | |
Kingdee International Software Group Co. Ltd. * | | |
| | |
| | |
|
|
Kweichow Moutai Co. Ltd., Class A | | |
| | |
Lens Technology Co. Ltd., Class A | | |
LONGi Green Energy Technology Co. Ltd., Class A | | |
Luzhou Laojiao Co. Ltd., Class A | | |
| | |
Midea Group Co. Ltd., Class A | | |
| | |
Montage Technology Co. Ltd., Class A | | |
NARI Technology Co. Ltd., Class A | | |
| | |
Ningbo Tuopu Group Co. Ltd., Class A | | |
Offshore Oil Engineering Co. Ltd., Class A | | |
Oppein Home Group, Inc., Class A | | |
PDD Holdings, Inc., ADR * | | |
PetroChina Co. Ltd., Class H | | |
PICC Property & Casualty Co. Ltd., Class H | | |
Ping An Bank Co. Ltd., Class A | | |
Ping An Insurance Group Co. of China Ltd., Class H | | |
Poly Developments and Holdings Group Co. Ltd., Class A | | |
Postal Savings Bank of China Co. Ltd., Class H (a) | | |
Qingdao Haier Biomedical Co. Ltd., Class A | | |
Sanquan Food Co. Ltd., Class A | | |
Sany Heavy Industry Co. Ltd., Class A | | |
Shanghai Baosight Software Co. Ltd., Class A | | |
Shenzhen Inovance Technology Co. Ltd., Class A | | |
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | | |
Shenzhou International Group Holdings Ltd. | | |
Sichuan Road and Bridge Group Co. Ltd., Class A | | |
Sichuan Swellfun Co. Ltd., Class A | | |
| | |
Sinopharm Group Co. Ltd., Class H | | |
| | |
Skshu Paint Co. Ltd., Class A * | | |
Sunny Optical Technology Group Co. Ltd. | | |
Sunresin New Materials Co. Ltd., Class A | | |
SUPCON Technology Co. Ltd., Class A | | |
| | |
Tingyi Cayman Islands Holding Corp. | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Topsports International Holdings Ltd. (a) | | |
| | |
Tsingtao Brewery Co. Ltd. | | |
Vipshop Holdings Ltd., ADR * | | |
Wanhua Chemical Group Co. Ltd., Class A | | |
Warom Technology, Inc. Co., Class A | | |
Wuliangye Yibin Co. Ltd., Class A | | |
WuXi AppTec Co. Ltd., Class H (a) | | |
Wuxi Biologics Cayman, Inc. * (a) | | |
Xiamen Faratronic Co. Ltd., Class A | | |
Xinyi Glass Holdings Ltd. | | |
Xinyi Solar Holdings Ltd. | | |
Yifeng Pharmacy Chain Co. Ltd., Class A | | |
Yixintang Pharmaceutical Group Co. Ltd., Class A | | |
| | |
Yutong Bus Co. Ltd., Class A | | |
Zhejiang Dingli Machinery Co. Ltd., Class A | | |
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A | | |
Zhejiang Supor Co. Ltd., Class A | | |
Zhejiang Weixing New Building Materials Co. Ltd., Class A | | |
Zhuhai Huafa Properties Co. Ltd., Class A | | |
Zhuzhou CRRC Times Electric Co. Ltd., Class H | | |
Zijin Mining Group Co. Ltd., Class H | | |
| | |
| | |
|
Bancolombia SA (Preference) | | |
| | |
| | |
|
| | |
|
| | |
|
Alpha Services and Holdings SA * | | |
Hellenic Telecommunications Organization SA | | |
| | |
Motor Oil Hellas Corinth Refineries SA | | |
| | |
National Bank of Greece SA * | | |
| | |
|
|
| | |
Piraeus Financial Holdings SA * | | |
| | |
|
| | |
| | |
Cathay Pacific Airways Ltd. * | | |
| | |
Hong Kong Exchanges & Clearing Ltd. | | |
| | |
Techtronic Industries Co. Ltd. | | |
| | |
|
MOL Hungarian Oil & Gas plc | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Britannia Industries Ltd. | | |
Cholamandalam Investment and Finance Co. Ltd. | | |
| | |
Colgate-Palmolive India Ltd. | | |
Computer Age Management Services Ltd. | | |
| | |
| | |
Dr Reddy's Laboratories Ltd. | | |
| | |
| | |
HDFC Asset Management Co. Ltd. (a) | | |
| | |
| | |
HDFC Life Insurance Co. Ltd. (a) | | |
Hindustan Petroleum Corp. Ltd. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
InterGlobe Aviation Ltd. * (a) | | |
| | |
Jindal Steel & Power Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
Metropolis Healthcare Ltd. (a) | | |
Multi Commodity Exchange of India Ltd. | | |
| | |
Oil & Natural Gas Corp. Ltd. | | |
| | |
| | |
Power Grid Corp. of India Ltd. | | |
| | |
| | |
| | |
Tata Consultancy Services Ltd. | | |
| | |
Tube Investments of India Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
Adaro Energy Indonesia Tbk. PT | | |
Astra International Tbk. PT | | |
Bank Central Asia Tbk. PT | | |
Bank Mandiri Persero Tbk. PT | | |
Bank Negara Indonesia Persero Tbk. PT | | |
Bank Rakyat Indonesia Persero Tbk. PT | | |
GoTo Gojek Tokopedia Tbk. PT * | | |
Indah Kiat Pulp & Paper Tbk. PT | | |
Indofood CBP Sukses Makmur Tbk. PT | | |
Sumber Alfaria Trijaya Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT | | |
Unilever Indonesia Tbk. PT | | |
| | |
| | |
| | |
|
|
National Bank of Kuwait SAKP | | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
Petronas Chemicals Group Bhd. | | |
Press Metal Aluminium Holdings Bhd. | | |
| | |
| | |
| | |
|
| | |
Arca Continental SAB de CV | | |
Bolsa Mexicana de Valores SAB de CV | | |
| | |
Coca-Cola Femsa SAB de CV | | |
Corp. Inmobiliaria Vesta SAB de CV | | |
Fomento Economico Mexicano SAB de CV | | |
| | |
Grupo Aeroportuario del Centro Norte SAB de CV | | |
Grupo Aeroportuario del Pacifico SAB de CV, Class B | | |
Grupo Aeroportuario del Sureste SAB de CV, Class B | | |
Grupo Financiero Banorte SAB de CV, Class O | | |
Kimberly-Clark de Mexico SAB de CV, Class A | | |
Qualitas Controladora SAB de CV | | |
| | |
| | |
Wal-Mart de Mexico SAB de CV | | |
| | |
|
Copa Holdings SA, Class A | | |
|
| | |
|
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Bank of the Philippine Islands | | |
| | |
International Container Terminal Services, Inc. | | |
| | |
| | |
| | |
|
Bank Polska Kasa Opieki SA | | |
| | |
| | |
Powszechny Zaklad Ubezpieczen SA | | |
| | |
|
| | |
|
| | |
| | |
Qatar Gas Transport Co. Ltd. | | |
| | |
| | |
|
| | |
| | |
Magnitogorsk Iron & Steel Works PJSC, GDR ‡ * | | |
MMC Norilsk Nickel PJSC, ADR ‡ * | | |
MMC Norilsk Nickel PJSC ‡ * | | |
Moscow Exchange MICEX-RTS PJSC ‡ | | |
| | |
Sberbank of Russia PJSC ‡ | | |
Severstal PAO, GDR ‡ * (a) | | |
| | |
X5 Retail Group NV, GDR ‡ * (a) | | |
| | |
|
| | |
Aldrees Petroleum and Transport Services Co. | | |
| | |
| | |
| | |
Arabian Contracting Services Co. | | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
Mouwasat Medical Services Co. | | |
| | |
| | |
| | |
Sahara International Petrochemical Co. | | |
Saudi Airlines Catering Co. | | |
Saudi Arabian Oil Co. (a) | | |
| | |
Saudi Basic Industries Corp. | | |
Saudi National Bank (The) | | |
| | |
Saudia Dairy & Foodstuff Co. | | |
| | |
United International Transportation Co. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
Capitec Bank Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Truworths International Ltd. | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
Eugene Technology Co. Ltd. | | |
| | |
Hana Financial Group, Inc. | | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
KIWOOM Securities Co. Ltd. | | |
Korea Investment Holdings Co. Ltd. | | |
Korean Air Lines Co. Ltd. | | |
Kumho Petrochemical Co. Ltd. | | |
| | |
LG Energy Solution Ltd. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Samsung Biologics Co. Ltd. * (a) | | |
| | |
Samsung Electro-Mechanics Co. Ltd. | | |
Samsung Electronics Co. Ltd. | | |
Samsung Engineering Co. Ltd. * | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
Samsung Securities Co. Ltd. | | |
Shinhan Financial Group Co. Ltd. | | |
| | |
|
|
| | |
SK IE Technology Co. Ltd. * (a) | | |
| | |
| | |
| | |
| | |
SM Entertainment Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
Banco Bilbao Vizcaya Argentaria SA | | |
|
Wizz Air Holdings plc * (a) | | |
|
| | |
| | |
ASE Technology Holding Co. Ltd. | | |
Asia Vital Components Co. Ltd. | | |
| | |
| | |
| | |
Cathay Financial Holding Co. Ltd. | | |
Chailease Holding Co. Ltd. | | |
| | |
| | |
| | |
Chunghwa Telecom Co. Ltd. | | |
CTBC Financial Holding Co. Ltd. | | |
| | |
E.Sun Financial Holding Co. Ltd. | | |
| | |
| | |
| | |
Feng TAY Enterprise Co. Ltd. | | |
Fubon Financial Holding Co. Ltd. | | |
| | |
Hon Hai Precision Industry Co. Ltd. | | |
Jentech Precision Industrial Co. Ltd. | | |
Largan Precision Co. Ltd. | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Makalot Industrial Co. Ltd. | | |
| | |
Mega Financial Holding Co. Ltd. | | |
Micro-Star International Co. Ltd. | | |
| | |
Nien Made Enterprise Co. Ltd. | | |
Novatek Microelectronics Corp. | | |
| | |
President Chain Store Corp. | | |
| | |
| | |
Realtek Semiconductor Corp. | | |
| | |
Taiwan Semiconductor Manufacturing Co. Ltd. | | |
Unimicron Technology Corp. | | |
United Microelectronics Corp. | | |
Vanguard International Semiconductor Corp. | | |
| | |
| | |
| | |
|
Advanced Info Service PCL | | |
Airports of Thailand PCL * | | |
| | |
Bangkok Dusit Medical Services PCL, Class F | | |
Bumrungrad Hospital PCL, NVDR | | |
Central Pattana PCL, NVDR | | |
Central Retail Corp. PCL, NVDR | | |
| | |
Delta Electronics Thailand PCL, NVDR | | |
Gulf Energy Development PCL | | |
Intouch Holdings PCL, NVDR | | |
| | |
Krung Thai Bank PCL, NVDR | | |
Minor International PCL, NVDR | | |
PTT Exploration & Production PCL | | |
| | |
| | |
| | |
Siam Cement PCL (The) (Registered) | | |
| | |
| | |
| | |
|
|
BIM Birlesik Magazalar A/S | | |
| | |
| | |
| | |
United Arab Emirates — 0.9% |
Abu Dhabi Commercial Bank PJSC | | |
Abu Dhabi Islamic Bank PJSC | | |
| | |
| | |
ADNOC Logistics & Services | | |
| | |
Dubai Electricity & Water Authority PJSC | | |
| | |
| | |
| | |
| | |
First Abu Dhabi Bank PJSC | | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $1,019,540,494) | | |
Short-Term Investments — 0.6% |
Investment Companies — 0.6% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c)(Cost $4,916,176) | | |
Total Investments — 99.9%
(Cost $1,024,456,670) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| |
| American Depositary Receipt |
| |
| Global Depositary Receipt |
| |
| Non-Voting Depositary Receipt |
| Public Joint Stock Company |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Limited liability company |
| |
| |
| Amount rounds to less than 0.1% of net assets. |
| Value determined using significant unobservable inputs. | |
| Non-income producing security. | |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. | |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. | |
| The rate shown is the current yield as of October 31, 2023. | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
Semiconductors & Semiconductor Equipment | |
Technology Hardware, Storage & Peripherals | |
| |
| |
Interactive Media & Services | |
Oil, Gas & Consumable Fuels | |
| |
Consumer Staples Distribution & Retail | |
| |
Hotels, Restaurants & Leisure | |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Real Estate Management & Development | |
| |
Wireless Telecommunication Services | |
| |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Global Select Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
Toronto-Dominion Bank (The) | | |
|
| | |
|
Novo Nordisk A/S, Class B | | |
|
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
|
Muenchener Rueckversicherungs-Gesellschaft AG (Registered) | | |
| | |
| | |
|
| | |
|
| | |
|
| | |
Japan Exchange Group, Inc. | | |
Shin-Etsu Chemical Co. Ltd. | | |
Tokio Marine Holdings, Inc. | | |
| | |
|
Wal-Mart de Mexico SAB de CV | | |
|
| | |
| | |
| | |
|
| | |
|
Samsung Electronics Co. Ltd. | | |
|
| | |
|
Zurich Insurance Group AG | | |
| | |
|
|
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
| | |
Boston Scientific Corp. * | | |
| | |
Charles Schwab Corp. (The) | | |
Charter Communications, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Hilton Worldwide Holdings, Inc. | | |
| | |
Marriott International, Inc., Class A | | |
Mastercard, Inc., Class A | | |
| | |
Meta Platforms, Inc., Class A * | | |
| | |
| | |
| | |
| | |
| | |
Public Service Enterprise Group, Inc. | | |
Regeneron Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Global Select Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
Uber Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $834,549,991) | | |
Short-Term Investments — 1.3% |
Investment Companies — 1.3% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b)(Cost $10,930,338) | | |
Total Investments — 100.1%
(Cost $845,480,329) | | |
Liabilities in Excess of Other Assets — (0.1)% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| Real Estate Investment Trust |
| Non-income producing security. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
| |
Oil, Gas & Consumable Fuels | |
| |
Hotels, Restaurants & Leisure | |
| |
Health Care Providers & Services | |
Technology Hardware, Storage & Peripherals | |
| |
| |
Interactive Media & Services | |
| |
| |
Textiles, Apparel & Luxury Goods | |
| |
| |
| |
| |
Construction & Engineering | |
| |
| |
| |
| |
Health Care Equipment & Supplies | |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Hedged Equity Laddered Overlay ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
Aerospace & Defense — 1.4% |
| | |
| | |
| | |
| | |
Air Freight & Logistics — 1.0% |
| | |
United Parcel Service, Inc., Class B | | |
| | |
Automobile Components — 0.2% |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Constellation Brands, Inc., Class A | | |
| | |
| | |
| | |
|
| | |
| | |
BioMarin Pharmaceutical, Inc. * | | |
Neurocrine Biosciences, Inc. * | | |
Regeneron Pharmaceuticals, Inc. * | | |
Sarepta Therapeutics, Inc. * | | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
|
| | |
Charles Schwab Corp. (The) | | |
| | |
Intercontinental Exchange, Inc. | | |
| | |
Raymond James Financial, Inc. | | |
| | |
| | |
| | |
|
Air Products and Chemicals, Inc. | | |
| | |
| | |
| | |
LyondellBasell Industries NV, Class A | | |
| | |
| | |
Commercial Services & Supplies — 0.2% |
| | |
Communications Equipment — 0.2% |
| | |
|
| | |
Consumer Staples Distribution & Retail — 1.7% |
| | |
| | |
| | |
| | |
|
| | |
Electric Utilities — 1.8% |
Constellation Energy Corp. | | |
| | |
| | |
| | |
| | |
Electrical Equipment — 0.6% |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Hedged Equity Laddered Overlay ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Electronic Equipment, Instruments & Components — 0.2% |
| | |
Keysight Technologies, Inc. * | | |
| | |
Energy Equipment & Services — 0.1% |
| | |
|
| | |
Warner Bros Discovery, Inc. * | | |
| | |
Financial Services — 4.5% |
Berkshire Hathaway, Inc., Class B * (a) | | |
FleetCor Technologies, Inc. * | | |
Mastercard, Inc., Class A (a) | | |
| | |
| | |
|
Mondelez International, Inc., Class A | | |
Ground Transportation — 0.9% |
| | |
| | |
Uber Technologies, Inc. * | | |
| | |
| | |
Health Care Equipment & Supplies — 2.4% |
Baxter International, Inc. | | |
| | |
Boston Scientific Corp. * | | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
Health Care Providers & Services — 3.2% |
| | |
| | |
| | |
| | |
| | |
UnitedHealth Group, Inc. (a) | | |
| | |
| | |
|
|
| | |
Hotels, Restaurants & Leisure — 2.4% |
| | |
Chipotle Mexican Grill, Inc. * | | |
| | |
| | |
Marriott International, Inc., Class A | | |
Royal Caribbean Cruises Ltd. * | | |
| | |
| | |
Household Durables — 0.3% |
| | |
| | |
| | |
| | |
Household Products — 0.9% |
Church & Dwight Co., Inc. | | |
Procter & Gamble Co. (The) | | |
| | |
Industrial Conglomerates — 1.0% |
Honeywell International, Inc. (a) | | |
|
| | |
|
| | |
| | |
| | |
| | |
Travelers Cos., Inc. (The) | | |
| | |
Interactive Media & Services — 5.7% |
Alphabet, Inc., Class A * (a) | | |
Alphabet, Inc., Class C * (a) | | |
Meta Platforms, Inc., Class A * (a) | | |
| | |
|
| | |
Cognizant Technology Solutions Corp., Class A | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
Life Sciences Tools & Services — 1.1% |
| | |
Thermo Fisher Scientific, Inc. | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
Charter Communications, Inc., Class A * | | |
Comcast Corp., Class A (a) | | |
| | |
|
| | |
|
| | |
Public Service Enterprise Group, Inc. | | |
| | |
Oil, Gas & Consumable Fuels — 4.3% |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Passenger Airlines — 0.1% |
| | |
Personal Care Products — 0.3% |
| | |
|
| | |
| | |
| | |
| | |
| | |
Professional Services — 0.2% |
| | |
| | |
|
|
Equity LifeStyle Properties, Inc. | | |
| | |
| | |
| | |
Semiconductors & Semiconductor Equipment — 7.2% |
Advanced Micro Devices, Inc. * | | |
| | |
| | |
| | |
NXP Semiconductors NV (China) | | |
| | |
| | |
| | |
| | |
|
| | |
Cadence Design Systems, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
Digital Realty Trust, Inc. | | |
| | |
| | |
|
| | |
| | |
| | |
Burlington Stores, Inc. * | | |
| | |
O'Reilly Automotive, Inc. * | | |
| | |
| | |
Technology Hardware, Storage & Peripherals — 7.3% |
| | |
Seagate Technology Holdings plc | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Hedged Equity Laddered Overlay ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
Textiles, Apparel & Luxury Goods — 0.4% |
| | |
|
| | |
Philip Morris International, Inc. | | |
| | |
Trading Companies & Distributors — 0.1% |
| | |
Wireless Telecommunication Services — 0.2% |
| | |
Total Common Stocks
(Cost $60,358,455) | | |
| | |
|
Put Options Purchased — 1.0% |
| | |
12/1/2023 at USD 410.00 , American | | |
Notional Amount: USD 19,780,860 | | |
Counterparty: Exchange-Traded * | | |
12/29/2023 at USD 405.00 , American | | |
Notional Amount: USD 19,780,860 | | |
Counterparty: Exchange-Traded * | | |
11/3/2023 at USD 415.00 , American | | |
Notional Amount: USD 19,780,860 | | |
Counterparty: Exchange-Traded * | | |
Total Put Options Purchased
(Cost $625,568) | | |
| | |
Short-Term Investments — 0.7% |
Investment Companies — 0.7% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)
(Cost $451,185) | | |
Total Investments — 98.1%
(Cost $61,435,208) | | |
Other Assets Less Liabilities — 1.9% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Real Estate Investment Trust |
| Standard & Poor's Depositary Receipt |
| |
| Non-income producing security. |
| All or a portion of the security is segregated for options written. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Written Call Options Contracts as of October 31, 2023
|
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| |
Written Put Options Contracts as of October 31, 2023
|
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
Total Written Options Contracts (Premiums Received $582,518) | |
| |
| |
| Standard & Poor's Depositary Receipt |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Growth ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
Woodside Energy Group Ltd. | | |
| | |
|
| | |
|
| | |
NU Holdings Ltd., Class A * | | |
| | |
|
Alimentation Couche-Tard, Inc. | | |
Canadian National Railway Co. | | |
Canadian Pacific Kansas City Ltd. | | |
| | |
|
ANTA Sports Products Ltd. | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Novo Nordisk A/S, Class B | | |
| | |
|
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
|
| | |
Hong Kong Exchanges & Clearing Ltd. | | |
| | |
|
| | |
| | |
| | |
|
Bank Central Asia Tbk. PT | | |
Telkom Indonesia Persero Tbk. PT, ADR | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Seven & i Holdings Co. Ltd. | | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
| | |
|
Wal-Mart de Mexico SAB de CV | | |
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
Industria de Diseno Textil SA | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
Cie Financiere Richemont SA (Registered) | | |
|
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | |
|
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
London Stock Exchange Group plc | | |
| | |
| | |
|
Cadence Design Systems, Inc. * | | |
ExlService Holdings, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $81,505,461) | | |
Short-Term Investments — 1.3% |
Investment Companies — 1.3% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $1,033,189) | | |
| | |
Total Investments — 99.9%
(Cost $82,538,650) | | |
Other Assets Less Liabilities — 0.1% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| Limited liability company |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Growth ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
| |
| |
Hotels, Restaurants & Leisure | |
Textiles, Apparel & Luxury Goods | |
| |
| |
Consumer Staples Distribution & Retail | |
Interactive Media & Services | |
| |
| |
Health Care Equipment & Supplies | |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
Construction & Engineering | |
| |
| |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
Diversified Telecommunication Services | |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Value ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
Coronado Global Resources, Inc., CHDI (a) | | |
| | |
| | |
| | |
| | |
Stanmore Resources Ltd. * | | |
Ventia Services Group Pty. Ltd. | | |
| | |
Woodside Energy Group Ltd. | | |
| | |
|
| | |
| | |
| | |
Vienna Insurance Group AG Wiener Versicherung Gruppe | | |
| | |
|
| | |
|
| | |
Cia de Saneamento de Minas Gerais Copasa MG * | | |
| | |
Petroleo Brasileiro SA (Preference) | | |
| | |
| | |
|
| | |
| | |
Canadian Natural Resources Ltd. | | |
| | |
Dundee Precious Metals, Inc. | | |
| | |
Fairfax Financial Holdings Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
|
Teck Resources Ltd., Class B | | |
| | |
| | |
|
Sociedad Quimica y Minera de Chile SA (Preference), Class B | | |
|
| | |
Agricultural Bank of China Ltd., Class H | | |
Alibaba Group Holding Ltd. * | | |
Bank of Communications Co. Ltd., Class H | | |
BOC Hong Kong Holdings Ltd. | | |
China Coal Energy Co. Ltd., Class H | | |
China Construction Bank Corp., Class H | | |
| | |
China Merchants Bank Co. Ltd., Class H | | |
China Pacific Insurance Group Co. Ltd., Class H | | |
China Resources Pharmaceutical Group Ltd. (a) | | |
CSPC Pharmaceutical Group Ltd. | | |
Industrial & Commercial Bank of China Ltd., Class H | | |
| | |
Jiangxi Copper Co. Ltd., Class H | | |
| | |
| | |
Livzon Pharmaceutical Group, Inc., Class H | | |
People's Insurance Co. Group of China Ltd. (The), Class H | | |
PetroChina Co. Ltd., Class H | | |
PICC Property & Casualty Co. Ltd., Class H | | |
| | |
| | |
|
| | |
| | |
Jyske Bank A/S (Registered) * | | |
| | |
| | |
|
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Value ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Bayerische Motoren Werke AG | | |
| | |
Deutsche Bank AG (Registered) | | |
Deutsche Telekom AG (Registered) | | |
| | |
| | |
| | |
Schaeffler AG (Preference) | | |
Volkswagen AG (Preference) | | |
| | |
|
Hellenic Telecommunications Organization SA | | |
|
Bank of East Asia Ltd. (The) | | |
Pacific Basin Shipping Ltd. | | |
United Laboratories International Holdings Ltd. (The) | | |
| | |
|
| | |
|
State Bank of India, GDR (a) | | |
|
| | |
|
Bank of Ireland Group plc | | |
| | |
| | |
| | |
|
|
Assicurazioni Generali SpA | | |
| | |
| | |
Danieli & C Officine Meccaniche SpA | | |
| | |
| | |
MFE-MediaForEurope NV, Class B | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Cosmo Energy Holdings Co. Ltd. | | |
| | |
Daiwa House Industry Co. Ltd. | | |
| | |
Fukuyama Transporting Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Japan Petroleum Exploration Co. Ltd. | | |
| | |
| | |
| | |
| | |
Mitsubishi Chemical Group Corp. | | |
| | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
| | |
Mizuho Financial Group, Inc. | | |
MS&AD Insurance Group Holdings, Inc. | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
| | |
SKY Perfect JSAT Holdings, Inc. | | |
| | |
| | |
| | |
Sumitomo Mitsui Financial Group, Inc. | | |
Sumitomo Realty & Development Co. Ltd. | | |
| | |
| | |
Tokyo Steel Manufacturing Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
ABN AMRO Bank NV, CVA (a) | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Hana Financial Group, Inc. | | |
Hankook Tire & Technology Co. Ltd. | | |
| | |
Hyundai Marine & Fire Insurance Co. Ltd. | | |
| | |
| | |
| | |
| | |
Korean Air Lines Co. Ltd. | | |
Kumho Petrochemical Co. Ltd. | | |
| | |
Samsung Electronics Co. Ltd. | | |
Samsung Fire & Marine Insurance Co. Ltd. | | |
Samsung Life Insurance Co. Ltd. | | |
| | |
| | |
|
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
Grupo Catalana Occidente SA | | |
| | |
| | |
|
| | |
Skandinaviska Enskilda Banken AB, Class A | | |
| | |
| | |
| | |
|
| | |
| | |
UBS Group AG (Registered) | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Value ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
ASE Technology Holding Co. Ltd. | | |
Compeq Manufacturing Co. Ltd. | | |
| | |
Hon Hai Precision Industry Co. Ltd. | | |
| | |
Powertech Technology, Inc. | | |
| | |
Unimicron Technology Corp. | | |
United Microelectronics Corp. | | |
| | |
|
| | |
Krung Thai Bank PCL, NVDR | | |
| | |
|
Tofas Turk Otomobil Fabrikasi A/S | | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $11,516,095) | | |
Exchange-Traded Funds — 1.0% |
|
iShares MSCI India ETF(Cost $113,106) | | |
Short-Term Investments — 2.9% |
Investment Companies — 2.9% |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c)(Cost $336,217) | | |
| | |
Total Investments — 99.5%
(Cost $11,965,418) | | |
Other Assets Less Liabilities — 0.5% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Clearing House Electronic Subregister System (CHESS) Depository Interest |
| Certificaten Van Aandelen (Dutch Certificate) |
| |
| Global Depositary Receipt |
| Non-Voting Depositary Receipt |
| |
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Limited liability company |
| Real Estate Investment Trust |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
Oil, Gas & Consumable Fuels | |
| |
| |
| |
| |
Trading Companies & Distributors | |
| |
Technology Hardware, Storage & Peripherals | |
Diversified Telecommunication Services | |
| |
Real Estate Management & Development | |
| |
| |
Semiconductors & Semiconductor Equipment | |
Electronic Equipment, Instruments & Components | |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023
| | JPMorgan
ActiveBuilders
Emerging Markets
Equity ETF | JPMorgan
Global Select
Equity ETF | JPMorgan
Hedged Equity
Laddered Overlay ETF |
| | | | |
Investments in non-affiliates, at value | | | | |
Investments in affiliates, at value | | | | |
Options purchased, at value | | | | |
| | | | |
Foreign currency, at value | | | | |
| | | | |
| | | | |
Investment securities sold | | | | |
| | | | |
Dividends from non-affiliates | | | | |
Dividends from affiliates | | | | |
| | | | |
Securities lending income (See Note 2.C.) | | | | |
| | | | |
| | | | |
| | | | |
Investment securities purchased | | | | |
Variation margin on futures contracts | | | | |
Outstanding options written, at fair value | | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Deferred foreign capital gains tax | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total distributable earnings (loss) | | | | |
| | | | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | | | |
Net asset value, per share | | | | |
Cost of investments in non-affiliates | | | | |
Cost of investments in affiliates | | | | |
Cost of options purchased | | | | |
| | | | |
Premiums received from options written | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
International
Growth ETF | JPMorgan
International
Value ETF |
| | |
Investments in non-affiliates, at value | | |
Investments in affiliates, at value | | |
| | |
Foreign currency, at value | | |
| | |
Investment securities sold | | |
Dividends from non-affiliates | | |
Dividends from affiliates | | |
| | |
| | |
| | |
| | |
Investment securities purchased | | |
| | |
Management fees (See Note 3.A.) | | |
| | |
| | |
| | |
| | |
Total distributable earnings (loss) | | |
| | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | |
Net asset value, per share | | |
Cost of investments in non-affiliates | | |
Cost of investments in affiliates | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023
| JPMorgan
Active
China ETF (a) | JPMorgan
ActiveBuilders
Emerging Markets
Equity ETF | JPMorgan
Global Select
Equity ETF (b) | |
| | | | |
Interest income from non-affiliates | | | | |
Interest income from affiliates | | | | |
Dividend income from non-affiliates | | | | |
Dividend income from affiliates | | | | |
Income from securities lending (net) (See Note 2.C.) | | | | |
Foreign taxes withheld (net) | | | | |
| | | | |
| | | | |
Management fees (See Note 3.A.) | | | | |
Interest expense to affiliates | | | | |
| | | | |
Net investment income (loss) | | | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | | | |
Net realized gain (loss) on transactions from: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
In-kind redemptions of investments in non-affiliates (See Note 4) | | | | |
| | | | |
| | | | |
Foreign currency transactions | | | | |
| | | | |
| | | | |
Change in net unrealized appreciation/depreciation on: | | | | |
Investments in non-affiliates | | | | |
Investments in affiliates | | | | |
| | | | |
| | | | |
Foreign currency translations | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Net realized/unrealized gains (losses) | | | | |
Change in net assets resulting from operations | | | | |
(a)
Commencement of operations was March 15, 2023.
(b)
Commencement of operations was September 13, 2023.
(c)
Commencement of operations was September 28, 2023.
(d)
Net of foreign capital gains tax of $(172,409).
(e)
Net of change in foreign capital gains tax of $(160,435).
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
International
Growth ETF | |
| | |
Interest income from non-affiliates | | |
Interest income from affiliates | | |
Dividend income from non-affiliates | | |
Dividend income from affiliates | | |
Income from securities lending (net) (See Note 2.C.) | | |
Foreign taxes withheld (net) | | |
| | |
| | |
Management fees (See Note 3.A.) | | |
Interest expense to affiliates | | |
| | |
Net investment income (loss) | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | |
Net realized gain (loss) on transactions from: | | |
Investments in non-affiliates | | |
Foreign currency transactions | | |
| | |
Change in net unrealized appreciation/depreciation on: | | |
Investments in non-affiliates | | |
Foreign currency translations | | |
Change in net unrealized appreciation/depreciation | | |
Net realized/unrealized gains (losses) | | |
Change in net assets resulting from operations | | |
(a)
Commencement of operations was September 13, 2023.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED
| | JPMorgan ActiveBuilders
Emerging Markets Equity
ETF |
| Period Ended
October 31, 2023 (a) | Year Ended
October 31, 2023 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | |
Net investment income (loss) | | | |
| | | |
Change in net unrealized appreciation/depreciation | | | |
Change in net assets resulting from operations | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | |
Total distributions to shareholders | | | |
| | | |
Change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Proceeds from shares issued | | | |
| | | |
Total change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
Net increase (decrease) in shares from share transactions | | | |
(a)
Commencement of operations was March 15, 2023.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan
Global Select
Equity ETF | JPMorgan Hedged Equity
Laddered Overlay ETF |
| Period Ended
October 31, 2023 (a) | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | |
Net investment income (loss) | | |
| | |
Change in net unrealized appreciation/depreciation | | |
Change in net assets resulting from operations | | |
| | |
Change in net assets resulting from capital transactions | | |
| | |
| | |
| | |
| | |
| | |
Proceeds from shares issued | | |
| | |
Total change in net assets resulting from capital transactions | | |
| | |
| | |
Net increase (decrease) in shares from share transactions | | |
(a)
Commencement of operations was September 13, 2023.
(b)
Commencement of operations was September 28, 2023.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan
International Growth ETF | JPMorgan
International
Value ETF |
| Year Ended
October 31, 2023 | Year Ended
October 31, 2022 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | |
Net investment income (loss) | | | |
| | | |
Change in net unrealized appreciation/depreciation | | | |
Change in net assets resulting from operations | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | |
Total distributions to shareholders | | | |
| | | |
Change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
| | | |
| | | |
Proceeds from shares issued | | | |
| | | |
Total change in net assets resulting from capital transactions | | | |
| | | |
| | | |
| | | |
Net increase (decrease) in shares from share transactions | | | |
(a)
Commencement of operations was September 13, 2023.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
THIS PAGE IS INTENTIONALLY LEFT BLANK
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | | | |
JPMorgan Active China ETF | | | | | | | |
March 15, 2023 (f) through October 31, 2023 | | | | | | | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | | | | | | | |
Year Ended October 31, 2023 | | | | | | | |
Year Ended October 31, 2022 | | | | | | | |
March 10, 2021 (f) through October 31, 2021 | | | | | | | |
JPMorgan Global Select Equity ETF | | | | | | | |
September 13, 2023 (f) through October 31, 2023 | | | | | | | |
JPMorgan Hedged Equity Laddered Overlay ETF | | | | | | | |
September 28, 2023 (f) through October 31, 2023 | | | | | | | |
JPMorgan International Growth ETF | | | | | | | |
Year Ended October 31, 2023 | | | | | | | |
Year Ended October 31, 2022 | | | | | | | |
Year Ended October 31, 2021 | | | | | | | |
May 20, 2020 (f) through October 31, 2020 | | | | | | | |
JPMorgan International Value ETF | | | | | | | |
September 13, 2023 (f) through October 31, 2023 | | | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the listing exchange of the Fund. |
| Commencement of operations. |
| Since the shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of secondary market trading, the net asset value is used as a proxy for the secondary market trading price to calculate the market returns. |
| Does not include expenses of unaffiliated Underlying Funds. |
| Amount rounds to less than $0.005. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Expenses
without waivers
and reimbursements | Portfolio
turnover
rate (c) |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023
1. Organization
J.P. Morgan Exchange-Traded Fund Trust (the “Trust”) was formed on February 25, 2010, and is governed by a Declaration of Trust as amended and restated February 19, 2014, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 6 separate funds of the Trust (each, a "Fund" and collectively, the "Funds") covered by this report:
| Diversification Classification |
JPMorgan Active China ETF | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | |
JPMorgan Global Select Equity ETF | |
JPMorgan Hedged Equity Laddered Overlay ETF | |
JPMorgan International Growth ETF | |
JPMorgan International Value ETF | |
The investment objective of JPMorgan Active China ETF (“Active China ETF”), JPMorgan ActiveBuilders Emerging Markets Equity ETF (“ActiveBuilders Emerging Markets Equity ETF”), JPMorgan Global Select Equity ETF ("Global Select Equity ETF"), JPMorgan International Growth ETF (“International Growth ETF”) and JPMorgan International Value ETF ("International Value ETF") is to seek to provide long-term capital appreciation.
The investment objective of JPMorgan Hedged Equity Laddered Overlay ETF (“Hedged Equity Laddered Overlay ETF”) is to seek to provide capital appreciation.
J.P. Morgan Investment Management Inc. (“JPMIM”), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), acts as adviser (the “Adviser”) and administrator (the “Administrator”) to the Funds.
Shares of each Fund are listed and traded at market price on an exchange as follows:
| |
| |
ActiveBuilders Emerging Markets Equity ETF | |
| The NASDAQ Stock Market LLC |
Hedged Equity Laddered Overlay ETF | |
| |
| The NASDAQ Stock Market LLC |
Market prices for the Funds’ shares may be different from their net asset value (“NAV”).
The Funds issue and redeem their shares on a continuous basis, through JPMorgan Distribution Services, Inc. (the “Distributor” or “JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, at NAV in large blocks of shares, referred to as “Creation Units”. Creation Units are issued and redeemed in exchange for a basket of securities and/or cash. Shares are generally traded in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Only individuals or institutions that have entered into an authorized participant agreement with the Distributor may do business directly with the Funds (each, an “Authorized Participant”).
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A. Valuation of Investments — Investments are valued in accordance with GAAP and the Funds' valuation policies set forth by, and under the supervision and responsibility of, the Board of Trustees of the Trust (the "Board"), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at their market value and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
Under Section 2(a)(41) of the 1940 Act, the Board is required to determine fair value for securities that do not have readily available market quotations. Under SEC Rule 2a-5 (Good Faith Determinations of Fair Value), the Board may designate the performance of these fair valuation determinations to a valuation designee. The Board has designated the Adviser as the “Valuation Designee” to perform fair valuation determinations
| J.P. Morgan Exchange-Traded Funds | |
for the Funds on behalf of the Board subject to appropriate oversight by the Board. The Adviser, as Valuation Designee, leverages the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to help oversee and carry out the policies for the valuation of investments held in the Funds. The Adviser, as Valuation Designee, remains responsible for the valuation determinations.
This oversight by the AVC includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight including, but not limited to, consideration of macro or security specific events, market events, and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and, at least on a quarterly basis, with the AVC and the Board.
A market-based approach is primarily used to value the Funds' investments. Investments for which market quotations are not readily available are fair valued using prices supplied by approved affiliated and/or unaffiliated pricing vendors or third party broker-dealers (collectively referred to as “Pricing Services”) or may be internally fair valued using methods set forth by the valuation policies approved by the Board. This may include the use of related or comparable assets or liabilities, recent transactions, market multiples, book values and other relevant information for the investment. An income-based valuation approach may be used in which the anticipated future cash flows of the investment are discounted to calculate the fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may be based upon current market prices of securities that are comparable in coupon, rating, maturity and industry. It is possible that the estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and such differences could be material.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the NAVs of the Funds are calculated on a valuation date. Certain foreign equity instruments are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post-closing, but prior to the time the NAVs are calculated.
Investments in open-end investment companies (“Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Futures contracts and options are generally valued on the basis of available market quotations.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer-related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds' investments are summarized into the three broad levels listed below.
•
Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments.
•
Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.
•
Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds' assumptions in determining the fair value of investments).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments ("SOIs"):
| | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Consumer Staples Distribution & Retail | | | | |
| | | | |
Electronic Equipment, Instruments & Components | | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Active China ETF (continued) | | | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
Health Care Equipment & Supplies | | | | |
Health Care Providers & Services | | | | |
Hotels, Restaurants & Leisure | | | | |
| | | | |
Independent Power and Renewable Electricity Producers | | | | |
| | | | |
Interactive Media & Services | | | | |
Life Sciences Tools & Services | | | | |
| | | | |
| | | | |
| | | | |
Oil, Gas & Consumable Fuels | | | | |
| | | | |
Real Estate Management & Development | | | | |
Semiconductors & Semiconductor Equipment | | | | |
| | | | |
Technology Hardware, Storage & Peripherals | | | | |
Textiles, Apparel & Luxury Goods | | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
ActiveBuilders Emerging Markets Equity ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
ActiveBuilders Emerging Markets Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Global Select Equity ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Hedged Equity Laddered Overlay ETF | | | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Total Investments in Securities (a) | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Depreciation in Other Financial Instruments | | | | |
|
| Please refer to the SOI for specifics of portfolio holdings. |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
International Growth ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
International Value ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the NAVs of the Funds.
As of October 31, 2023, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A and/or Regulation S under the Securities Act.
C. Securities Lending — The Funds are authorized to engage in securities lending in order to generate additional income. The Funds are able to lend to approved borrowers. Citibank N.A. (“Citibank”) serves as lending agent for the Funds, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in the Class IM Shares of the JPMorgan U.S. Government Money Market Fund. The Funds retain the interest earned on cash collateral investments but are required to pay the borrower a rebate for the use of the cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Funds or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Income from securities lending (net). The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statements of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from the borrower so as to maintain a collateralization level of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities), subject to certain de minimis amounts.
The value of securities out on loan is recorded as an asset on the Statements of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of collateral investments are disclosed on the SOIs.
The Funds bear the risk of loss associated with the collateral investments and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, the Funds may incur losses that exceed the amount they earned on lending the security. Upon termination of a loan, the Funds may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the collateral investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Funds from losses resulting from a borrower’s failure to return a loaned security.
JPMIM voluntarily waived management fees charged to the Funds to reduce the impact of the cash collateral investment in the JPMorgan U.S. Government Money Market Fund from 0.13% to 0.06%. For the year ended October 31, 2023, JPMIM waived fees associated with the Funds' investment in the JPMorgan U.S. Government Money Market Fund as follows:
ActiveBuilders Emerging Markets Equity ETF | |
| |
The above waiver is included in the determination of earnings on cash collateral investment and in the calculation of Citibank’s compensation and is included on the Statements of Operations as Income from securities lending (net).
ActiveBuilders Emerging Markets Equity ETF and International Growth ETF did not have any securities out on loan at October 31, 2023. Active China ETF, Global Select Equity ETF, Hedged Equity Laddered Overlay ETF and International Value ETF did not lend out any securities during the year ended October 31, 2023.
| J.P. Morgan Exchange-Traded Funds | |
D. Investment Transactions with Affiliates — The Funds invested in Underlying Funds advised by the Adviser. An issuer which is under common control with a Fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. The Underlying Funds’ distributions may be reinvested into such Underlying Funds. Reinvestment amounts are included in the purchases at cost amounts in the tables below.
|
For the period ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c) | | | | | | | | | |
|
| Commencement of operations was March 15, 2023. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
ActiveBuilders Emerging Markets Equity ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the period ended October 31, 2023 |
| Value at
September 13,
2023(a) | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c) | | | | | | | | | |
|
| Commencement of operations was September 13, 2023. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Hedged Equity Laddered Overlay ETF |
For the period ended October 31, 2023 |
| Value at
September 28,
2023(a) | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
|
| Commencement of operations was September 28, 2023. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
|
For the period ended October 31, 2023 |
| Value at
September 13,
2023(a) | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (b) (c) | | | | | | | | | |
|
| Commencement of operations was September 13, 2023. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
E. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments in non-affiliates on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund's books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported
| J.P. Morgan Exchange-Traded Funds | |
realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at year end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
F. Options — Hedged Equity Laddered Overlay ETF purchased and sold (“wrote”) put and call options on various instruments including options on indices to manage and hedge interest rate risks within its portfolio and also to gain long or short exposure to the underlying instrument, index, currency or rate. A purchaser of a put option has the right, but not the obligation, to sell the underlying instrument at an agreed upon price (“strike price”) to the option seller. A purchaser of a call option has the right, but not the obligation, to purchase the underlying instrument at the strike price from the option seller.
Options Purchased — Premiums paid by the Fund for options purchased are included on the Statements of Assets and Liabilities as Options purchased. The option is adjusted daily to reflect the current market value of the option and the change is recorded as Change in net unrealized appreciation/depreciation on options purchased on the Statements of Operations. If the option is allowed to expire, the Funds will lose the entire premium it paid and record a realized loss for the premium amount. Premiums paid for options purchased which are exercised or closed are added to the amounts paid or will offset against the proceeds on the underlying investment transaction to determine the realized gain (loss) or cost basis of the underlying investment.
Options Written — Premiums received by the Fund for options written are included on the Statements of Assets and Liabilities as a liability. The amount of the liability is adjusted daily to reflect the current market value of the option written and the change in market value is recorded as Change in net unrealized appreciation/depreciation on options written on the Statements of Operations. Premiums received from options written that expire are treated as realized gains. If a written option is closed, the Fund records a realized gain or loss on options written based on whether the cost of the closing transaction exceeds the premium received. If a call option is exercised by the option buyer, the premium received by the Fund is added to the proceeds from the sale of the underlying security to the option buyer and compared to the cost of the closing transaction to determine whether there has been a realized gain or loss. If a put option is exercised by an option buyer, the premium received by the option seller reduces the cost basis of the purchased security.
The Fund pledges collateral to the counterparty in the form of securities for options written. Securities designated as collateral are denoted on the SOI.
Written uncovered call options subject the Fund to unlimited risk of loss. Written covered call options limit the upside potential of a security above the strike price. Written put options subject the Fund to risk of loss if the value of the security declines below the exercise price minus the put premium.
The Fund is not subject to credit risk on options written as the counterparty has already performed its obligation by paying the premium at the inception of the contract.
The Fund’s exchange-traded option contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
G. Futures Contracts —Hedged Equity Laddered Overlay ETF used index futures contracts to gain or reduce exposure to the stock market, or maintain liquidity or minimize transaction costs. The Fund also used index futures contracts to more effectively manage the long and short equity exposures in the portfolio. The Fund also purchased futures contracts to invest incoming cash in the market or sold futures in response to cash outflows, thereby simulating an invested position in the underlying index while maintaining a cash balance for liquidity.
Futures contracts provide for the delayed delivery of the underlying instrument at a fixed price or are settled for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. Upon entering into a futures contract, the Fund is required to deposit with the broker, cash or securities in an amount equal to a certain percentage of the contract amount, which is referred to as the initial margin deposit. Subsequent payments, referred to as variation margin, are made or received by the Fund periodically and are based on changes in the market value of open futures contracts. Changes in the market value of open futures contracts are recorded as Change in net unrealized appreciation/depreciation on futures contracts on the Statements of Operations. Realized gains or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported on the Statements of Operations at the closing or expiration of the futures contract. Securities deposited as initial margin are designated on the SOIs, while cash deposited, which is considered restricted, is recorded on the Statements of Assets and Liabilities. A receivable from and/or a payable to brokers for the daily variation margin is also recorded on the Statements of Assets and Liabilities.
The use of futures contracts exposes the Fund to equity price risk. The Fund may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying instrument. Use of long futures contracts subjects the Fund to risk of loss in excess of the amounts shown on the Statements of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. The Fund may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction; therefore, the Fund's credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of positions.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
The Fund's futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
Derivatives Volume
The table below discloses the volume of the Fund's options and futures contracts activity during the year ended October 31, 2023:
| Hedged Equity
Laddered Overlay ETF |
| |
Average Notional Balance Long | |
Ending Notional Balance Long | |
| |
Average Number of Contracts Purchased | |
Average Number of Contracts Written | |
Ending Number of Contracts Purchased | |
Ending Number of Contracts Written | |
|
| For the period September 28, 2023 through October 31, 2023. |
The Fund's derivatives contracts held at October 31, 2023 are not accounted for as hedging instruments under GAAP.
H. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis.
Dividend income, net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary, once the issuers provide information about the actual composition of the distributions.
| J.P. Morgan Exchange-Traded Funds | |
I. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund's policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds' tax positions for all open tax years and has determined that as of October 31, 2023, no liability for Federal income tax is required in the Funds' financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each Fund's Federal tax returns for the prior three fiscal years, or since inception if shorter, remain subject to examination by the Internal Revenue Service.
J. Foreign Taxes —The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. When a capital gains tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
K. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually for Active China ETF, ActiveBuilders Emerging Markets Equity ETF, Global Select Equity ETF, International Growth ETF and International Value ETF, and at least quarterly for Hedged Equity Laddered Overlay ETF. Net realized capital gains, if any, are distributed by each Fund at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax basis treatment.
The following amounts were reclassified within the capital accounts:
| | Accumulated
undistributed
(distributions in
excess of)
net investment
income | Accumulated
net realized
gains (losses) |
| | | |
ActiveBuilders Emerging Markets Equity ETF | | | |
| | | |
| | | |
| | | |
The reclassifications for the Funds relate primarily to tax adjustments on certain investments, foreign currency gains or losses and redemptions in-kind.
3. Fees and Other Transactions with Affiliates
A. Management Fee — Pursuant to each Fund’s Management Agreement, the Adviser is paid a management fee which is accrued daily and paid no more frequently than monthly based on each Fund's respective average daily net assets at the following rate:
| |
| |
ActiveBuilders Emerging Markets Equity ETF | |
| |
Hedged Equity Laddered Overlay ETF | |
| |
| |
The Adviser, with respect to Active China ETF, has entered into an investment sub-advisory agreement with JPMorgan Asset Management (Asia Pacific) Limited (“JPMAM (AP)”), an indirect, wholly-owned subsidiary of JPMorgan Asset Management Holdings Inc. (“Sub-Advisory Agreement”). For its services as sub-adviser, JPMAM (AP) receives a portion of the fees payable to the Adviser.
Pursuant to the Sub-Advisory agreement, JPMAM (AP) is responsible for the day-to-day investment decisions of Active China ETF. JPMIM has obtained a “managers of managers” exemptive order from the SEC, as expanded by subsequent SEC staff no-action relief (the “Exemptive Order”), upon which Active China ETF may rely, which grants exemptions from certain provisions of the 1940 Act. Pursuant to the Exemptive Order, JPMIM is permitted, subject to supervision and approval of the Board, to enter into and materially amend sub-advisory agreements with affiliated and unaffiliated sub-advisers without such agreements being approved by the shareholders of Active China ETF. Accordingly, Active China ETF and JPMIM may hire, terminate, or replace affiliated and unaffiliated sub-advisers without shareholder approval, including, without limitation, the replacement or reinstatement of any sub-advisers with respect to which a sub-advisory agreement has automatically terminated as a result of an assignment.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
JPMIM will continue to have ultimate responsibility, subject to oversight of the Board, to oversee the sub-advisers and recommend their hiring, termination and replacement.
Active China ETF has selected JPMAM (AP) to manage all of Active China ETF’s assets. Shareholders will be notified of any changes in sub-advisers. Shareholders of Active China ETF have the right to terminate a sub-advisory agreement for Active China ETF at any time by a vote of the majority of the outstanding voting securities of Active China ETF. The Exemptive Order also permits Active China ETF to disclose to shareholders the management fees only in the aggregate.
Under each Management Agreement, JPMIM is responsible for substantially all expenses of each Fund, (including expenses of the Trust relating to each Fund), except for the management fees, payments under the Funds' 12b-1 plan (if any), interest expenses, dividend and interest expenses related to short sales, taxes, acquired fund fees and expenses (other than fees for funds advised by the Adviser and/or its affiliates), costs of holding shareholder meetings, and litigation and potential litigation and other extraordinary expenses not incurred in the ordinary course of each Fund’s business. Additionally, each Fund is responsible for its non-operating expenses, including brokerage commissions and fees and expenses associated with each Fund’s securities lending program, if applicable. For the avoidance of doubt, the Adviser’s payment of such expenses may be accomplished through a Fund’s payment of such expenses and a corresponding reduction in the fee payable to the Adviser, provided, however, that if the amount of expenses paid by a Fund exceeds the fee payable to the Adviser, the Adviser will reimburse that Fund for such amount.
B. Administration Fee — JPMIM provides administration services to the Funds. Pursuant to each Management Agreement, JPMIM is compensated as described in Note 3.A.
JPMorgan Chase Bank, N.A. (“JPMCB”), a wholly-owned subsidiary of JPMorgan, serves as the Funds' sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the management fees payable to JPMIM.
C. Custodian, Accounting and Transfer Agent Fees— JPMCB provides custody, accounting and transfer agency services to the Funds. For performing these services, JPMIM pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses.
Additionally, Authorized Participants generally pay transaction fees associated with the creation and redemption of Fund shares. These fees are paid to JPMIM to offset certain custodian charges that are covered by each Management Agreement.
Interest income earned on cash balances at the custodian, if any, is included in Interest income from affiliates on the Statements of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statements of Operations.
D. Distribution Services — The Distributor or its agent distributes Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of each Fund. JPMDS receives no fees for their distribution services under the distribution agreement with the Trust (the “Distribution Agreement”). Although the Trust does not pay any fees under the Distribution Agreement, JPMIM pays JPMDS for certain distribution related services.
E. Waivers and Reimbursements — The Funds may invest in one or more money market funds advised by the Adviser (affiliated money market funds). The fees for the affiliated money market funds, except for investments of securities lending cash collateral, are covered under each Management Agreement as described in Note 3.A.
F. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. Such officers receive no compensation from the Funds for serving in their respective roles.
The Board designated and appointed a Chief Compliance Officer to the Funds pursuant to Rule 38a-1 under the 1940 Act. The fees associated with the office of the Chief Compliance Officer are paid for by JPMIM as described in Note 3.A.
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities LLC, an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended October 31, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Purchases
(excluding
U.S. Government) | Sales
(excluding
U.S. Government) |
| | |
ActiveBuilders Emerging Markets Equity ETF | | |
| | |
Hedged Equity Laddered Overlay ETF | | |
| | |
| J.P. Morgan Exchange-Traded Funds | |
| Purchases (excluding U.S. Government) | Sales (excluding U.S. Government) |
| | |
During the year ended October 31, 2023, there were no purchases or sales of U.S. Government securities.
For the year ended October 31, 2023, in-kind transactions associated with creations and redemptions were as follows:
| | |
ActiveBuilders Emerging Markets Equity ETF | | |
| | |
Hedged Equity Laddered Overlay ETF | | |
| | |
| | |
During the year ended October 31, 2023, the Funds delivered portfolio securities for the redemption of Fund shares (in-kind redemptions). Cash and portfolio securities were transferred for redemptions at fair value. For financial reporting purposes, the Funds recorded net realized gains and losses in connection with each in-kind redemption transaction.
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
| | | | |
ActiveBuilders Emerging Markets Equity ETF | | | | |
| | | | |
Hedged Equity Laddered Overlay ETF | | | | |
| | | | |
| | | | |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to tax adjustments on certain investments and wash sale loss deferrals.
The tax character of distributions paid during the year ended October 31, 2023 was as follows:
| | |
ActiveBuilders Emerging Markets Equity ETF | | |
| | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
The tax character of distributions paid during the year ended October 31, 2022 was as follows:
| | Net
Long-Term
Capital Gains | |
ActiveBuilders Emerging Markets Equity ETF | | | |
| | | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
As of October 31, 2023, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows:
| Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
(Tax Basis Capital
Loss Carryover) | Unrealized
Appreciation
(Depreciation) |
| | | |
ActiveBuilders Emerging Markets Equity ETF | | | |
| | | |
Hedged Equity Laddered Overlay ETF | | | |
| | | |
| | | |
The cumulative timing differences primarily consist of tax adjustments on certain investments and wash sale loss deferrals.
At October 31, 2023, the following Funds had net capital loss carryforwards, which are available to offset future realized gains:
| Capital Loss Carryforward Character |
| | |
| | |
ActiveBuilders Emerging Markets Equity ETF | | |
| | |
Hedged Equity Laddered Overlay ETF | | |
| | |
| | |
6. Capital Share Transactions
The Trust issues and redeems shares of the Funds only in Creation Units through the Distributor at NAV. Capital shares transactions detail can be found in the Statements of Changes in Net Assets.
Shares of the Funds may only be purchased or redeemed by Authorized Participants. Such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the Funds' shares outstanding and act as executing or clearing broker for investment transactions on behalf of the Funds. An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”); or (2) a DTC Participant; which, in either case, must have executed an agreement with the Distributor.
Creation Units of a Fund may be created in advance of receipt by the Trust of all or a portion of the applicable basket of equity securities and other instruments (“Deposit Instruments”) and cash as described in the Funds’ registration statement. In these instances, the initial Deposit Instruments and cash must be deposited in an amount equal to the sum of the cash amount, plus at least 105% for Active China ETF, Global Select Equity ETF, Hedged Equity Laddered Overlay ETF (for negotiated redemptions only), International Growth ETF and International Value ETF, and plus at least 110% for ActiveBuilders Emerging Markets Equity ETF of the market value of undelivered Deposit Instruments. A transaction fee may be imposed to offset transfer and other transaction costs associated with the purchase or redemption of Creation Units.
| J.P. Morgan Exchange-Traded Funds | |
7. Borrowings
Effective November 1, 2022, the Funds rely upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Funds because the Funds and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
As of October 31, 2023, the Funds had no borrowings outstanding from another fund, or loans outstanding to another fund. Average borrowings from the Facility during the year ended October 31, 2023 were as follows:
| | | | |
ActiveBuilders Emerging Markets Equity ETF | | | | |
The Trust and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until October 29, 2024.
The Funds had no borrowings outstanding from the unsecured, uncommitted credit facility during the year ended October 31, 2023.
Effective August 8, 2023, the Trust, along with certain other trusts for J.P. Morgan Funds, excluding JPMorgan Global Select Equity ETF, Hedged Equity Laddered Overlay ETF and International Value ETF, (“Borrowers”), has entered into an existing joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. Although the Trust is effectively part of the Credit Facility as of August 8, 2023, it is not eligible to draw on the Credit Facility, and will not incur costs associated with being a part of the Credit Facility, until on or about May 28, 2024.
This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a minimum of $25 million in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the fund must remediate within three business days with respect to the $25 million minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% (the "Applicable Margin"), plus the greater of the federal funds effective rate or the one-month Adjusted Secured Overnight Financing Rate ("SOFR"). Effective August 8, 2023, the Credit Facility has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended October 31, 2023.
8. Risks, Concentrations and Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund's maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be brought against each Fund. However, based on experience, the Funds expect the risk of loss to be remote.
As of October 31, 2023, JPMorgan SmartRetirement Funds, which are affiliated fund of funds, each owned in the aggregate, shares representing more than 10% of the net assets of the Funds as follows:
| JPMorgan
SmartRetirement
Funds |
ActiveBuilders Emerging Markets Equity ETF | |
| |
Significant shareholder transactions by these shareholders may impact the Funds' performance and liquidity.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
As of October 31, 2023, the Adviser owned shares representing more than 10% of net assets of the following Funds:
Significant shareholder transactions by the Adviser may impact the Funds' performance.
The Funds may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of foreign countries or regions, which may vary throughout the period. Such concentrations may subject each of these Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
Investing in securities of foreign countries may include certain risks and considerations not typically associated with investing in U.S. securities. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and currencies, and future and adverse political, social and economic developments.
Investments in Mainland China, Hong Kong, Taiwan and Macau are subject to significant legal, regulatory, monetary and economic risks, as well as the potential for regional and global conflicts, including actions that are contrary to the interests of the U.S.
Chinese operating companies sometimes rely on Variable Interest Entity (VIE) structures to raise capital from non-Chinese investors, even though such arrangements are not formally recognized under Chinese law. VIE structures are used due to Mainland Chinese government prohibitions on foreign ownership of companies in certain industries and it is not clear that the contracts are enforceable or that the structures will otherwise work as intended. There may also be conflicts of interest between the legal owners of the Mainland Chinese company and non-Chinese investors (such as Active China ETF). It is unclear whether the Mainland China government will withdraw its implicit acceptance of the VIE structure, or whether any new laws, rules or regulations relating to VIE structures will be adopted or, if adopted, what impact they would have on the interests of non-Chinese investors. The market value of Active China ETF’s associated portfolio holdings would likely fall, causing substantial investment losses.
As of October 31, 2023, the following Funds had non-U.S. country allocations representing greater than 10% of total investments as follows:
| | ActiveBuilders
Emerging
Markets
Equity ETF | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
As of October 31, 2023, a significant portion of the investments of the Funds consisted of securities that were denominated in foreign currencies. Changes in currency exchange rates will affect the value of, and investment income from, such securities.
Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic and market conditions and could result in losses that significantly exceed the Funds’ original investment. Many derivatives create leverage thereby causing the Funds to be more volatile than they would have been if they had not used derivatives. Derivatives also expose the Funds to counterparty risk (the risk that the derivative counterparty will not fulfill its contractual obligations), including credit risk of the derivative counterparty. The possible lack of a liquid secondary market for derivatives and the resulting inability of the Funds to sell or otherwise close a derivatives position could expose the Funds to losses.
Disruptions to creations and redemptions, the existence of significant market volatility or potential lack of an active trading market for the shares (including through a trading halt), as well as other factors, may result in shares trading significantly above (at a premium) or below (at a discount) to the NAV or to the intraday value of the Funds’ holdings. During such periods, investors may incur significant losses if shares are sold.
The Funds invest in foreign issuers and foreign securities (including depositary receipts) that are subject to additional risks, including political and economic risks, unstable governments, civil conflicts and war, greater volatility, decreased market liquidity, expropriation and nationalization risks, sanctions or other measures by the United States or other governments, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, liquidity risks and less stringent investor protection and disclosure standards of foreign markets. In certain
| J.P. Morgan Exchange-Traded Funds | |
markets where securities and other instruments are not traded “delivery versus payment,” a Fund may not receive timely payment for securities or other instruments it has delivered or receive delivery of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. Foreign market trading hours, clearance and settlement procedures, and holiday schedules may limit the Funds' ability to buy and sell securities.
Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. ActiveBuilders Emerging Markets Equity ETF invests a substantial portion of its assets in emerging market countries. These risks are magnified in countries in emerging markets. Emerging market
countries typically have less established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable.
Additionally, the Funds may have substantial difficulties exercising their legal rights or enforcing a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular in emerging market countries, which can increase the risks of loss.
The Funds are subject to infectious disease epidemics/pandemics risk. For example, the outbreak of COVID-19 negatively affected economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of any future pandemic or other global event to business and market conditions may have a significant negative impact on the performance of a Fund's investments, increase
a Fund's volatility, negatively impact a Fund’s arbitrage and pricing mechanisms, exacerbate other pre-existing political, social and economic risks to the Funds and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic or other global event that affect the instruments in which the
Funds invest, or the issuers of such instruments, in ways that could have a significant negative impact on a Fund’s investment performance. The ultimate impact of any pandemic or other global event and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of J.P. Morgan Exchange-Traded Fund Trust and Shareholders of each of the six funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of each of the funds listed in the table below (six of the funds constituting J.P. Morgan Exchange-Traded Fund Trust, hereafter collectively referred to as the "Funds") as of October 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Fund
JPMorgan Active China ETF (1) |
JPMorgan ActiveBuilders Emerging Markets Equity ETF (2) |
JPMorgan Global Select Equity ETF (3) |
JPMorgan Hedged Equity Laddered Overlay ETF (4) |
JPMorgan International Growth ETF (2) |
JPMorgan International Value ETF (3) |
| Statement of operations and statement of changes in net assets for the period March 15, 2023 (commencement of operations) through October 31, 2023 |
| Statement of operations for the year ended October 31, 2023 and statement of changes in net assets for the years ended October 31, 2023 and 2022 |
| Statement of operations and statement of changes in net assets for the period September 13, 2023 (commencement of operations) through October 31, 2023 |
| Statement of operations and statement of changes in net assets for the period September 28, 2023 (commencement of operations) through October 31, 2023 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 21, 2023
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
| J.P. Morgan Exchange-Traded Funds | |
The Funds' Statement of Additional Information includes additional information about the Funds' Trustees and is available, without charge, upon request by calling 1-844-457-6383 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth);
Positions With
the Funds (1) | Principal Occupation
During Past 5 Years | Number of
Funds in Fund
Complex Overseen
by Trustee (2) | Other Directorships Held
During the Past 5 Years |
| |
John F. Finn (1947); Chair
since 2020; Trustee since 1998. | Chairman, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present). |
Stephen P. Fisher (1959);
Trustee since 2018. | Retired; Chairman and Chief Executive Officer, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | | Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). |
Gary L. French (1951);
Trustee since 2014. | Real Estate Investor (2011-2020); Investment management industry Consultant and Expert Witness (2011-present); Senior Consultant for The Regulatory Fundamentals Group LLC (2011-2017). | | Independent Trustee, The China Fund, Inc. (2013-2019); Exchange Traded Concepts Trust II (2012-2014); Exchange Traded Concepts Trust I (2011-2014). |
Kathleen M. Gallagher (1958);
Trustee since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | | Non- Executive Director, Legal & General Investment Management (Holdings) (2018-present); Non-Executive Director, Legal & General Investment Management America (U.S. Holdings) (financial services and insurance) (2017-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). |
Robert J. Grassi (1957);
Trustee since 2014. | Sole Proprietor, Academy Hills Advisors LLC (2012-present); Pension Director, Corning Incorporated (2002-2012). | | |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Frankie D. Hughes (1952);
Trustee since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | | |
Raymond Kanner (1953);
Trustee since 2017. | Retired; Managing Director and Chief Investment Officer, IBM Retirement Funds (2007-2016). | | Advisory Board Member, Penso Advisors, LLC (2020-present); Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017- present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016- 2017); Advisory Board Member, BlueStar Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). |
Thomas P. Lemke (1954);
Trustee since 2014. | | | (1) Independent Trustee of Advisors’ Inner Circle III fund platform, consisting of the following: (i) the Advisors’ Inner Circle Fund III, (ii) the Gallery Trust, (iii) the Schroder Series Trust, (iv) the Delaware Wilshire Private Markets Fund (since 2020), (v) Chiron Capital Allocation Fund Ltd., and (vi) formerly the Winton Diversified Opportunities Fund (2014-2018); and (2) Independent Trustee of the Symmetry Panoramic Trust (since 2018). |
Lawrence R. Maffia (1950);
Trustee since 2014. | Retired; Director and President, ICI Mutual Insurance Company (2006-2013). | | Director, ICI Mutual Insurance Company (1999-2013). |
Mary E. Martinez (1960); Vice
Chair since 2021; Trustee since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (asset management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | | |
Marilyn McCoy (1948);
Trustee since 1999. | Retired; Vice President of Administration and Planning, Northwestern University (1985-2023). | | |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Dr. Robert A. Oden, Jr. (1946); Trustee
since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | | Trustee, The Coldwater Conservation Fund (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Trustee and Vice Chair, Trout Unlimited (2017-2021); Trustee, Dartmouth- Hitchcock Medical Center (2011-2020). |
Marian U. Pardo* (1946);
Trustee since 2013. | Managing Director and Founder, Virtual Capital Management LLC (investment consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | | Board Chair and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
Emily A. Youssouf (1951);
Trustee since 2014. | Adjunct Professor (2011-present) and Clinical Professor (2009-2011), NYU Schack Institute of Real Estate; Board Member and Member of the Audit Committee (2013–present), Chair of Finance Committee (2019-present), Member of Related Parties Committee (2013-2018) and Member of the Enterprise Risk Committee (2015-2018), PennyMac Financial Services, Inc.; Board Member (2005-2018), Chair of Capital Committee (2006-2016), Chair of Audit Committee (2005-2018), Member of Finance Committee (2005-2018) and Chair of IT Committee (2016-2018), NYC Health and Hospitals Corporation. | | Trustee, NYC School Construction Authority (2009-present); Board Member, NYS Job Development Authority (2008-present); Trustee and Chair of the Audit Committee of the Transit Center Foundation (2015-2019). |
| |
Robert F. Deutsch** (1957);
Trustee since 2014. | Retired; Head of ETF Business for JPMorgan Asset Management (2013-2017); Head of Global Liquidity Business for JPMorgan Asset Management (2003-2013). | | Treasurer and Director of the JUST Capital Foundation (2017-present). |
Nina O. Shenker** (1957);
Trustee since 2022. | Vice Chair (2017-2021), General Counsel and Managing Director (2008-2016), Associate General Counsel and Managing Director (2004-2008), J.P. Morgan Asset & Wealth Management. | | Director and Member of Legal and Human Resources Subcommittees, American Jewish Joint Distribution Committee (2018-present). |
|
| The year shown is the first year in which a Trustee became a member of any of the following: the JPMorgan Mutual Fund Board, the JPMorgan ETF Board, the heritage J.P. Morgan Funds or the heritage One Group Mutual Funds. Trustees serve an indefinite term, until resignation, retirement, removal or death. The Board's current retirement policy sets retirement at the end of the calendar year in which the Trustee attains the age of 75, provided that any Board member who was a member of the JPMorgan Mutual Fund Board prior to January 1, 2022 and was born prior to January 1, 1950 shall retire from the Board at the end of the calendar year in which the Trustee attains the age of 78. |
| A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes nine registered investment companies (170 J.P. Morgan Funds). |
| In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
| Designation as an “Interested Trustee” is based on prior employment by the Adviser or an affiliate of the Adviser or interests in a control person of the Adviser. |
| The contact address for each of the Trustees is 277 Park Avenue, New York, NY 10172. |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth),
Positions Held with
the Trust (Since) | Principal Occupations During Past 5 Years |
Brian S. Shlissel (1964),
President and Principal Executive
Officer (2021) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. since 2014. |
Timothy J. Clemens (1975),
Treasurer and Principal Financial
Officer (2020) | Managing Director, J.P. Morgan Investment Management Inc. Mr. Clemens has been with J.P. Morgan Investment Management Inc. since 2013. |
Gregory S. Samuels (1980),
Secretary (2022) (formerly Assistant
Secretary 2014-2022) | Managing Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Samuels has been with JPMorgan Chase & Co. since 2010. |
Stephen M. Ungerman (1953),
Chief Compliance Officer (2014) | Managing Director, JPMorgan Chase & Co. Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. |
Kiesha Astwood-Smith (1973),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Senior Director and Counsel, Equitable Financial Life Insurance Company (formerly, AXA Equitable Life Insurance Company) from September 2015 through June 2021. |
Matthew Beck (1988),
Assistant Secretary (2021)* | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since May 2021; Senior Legal Counsel, Ultimus Fund Solutions from May 2018 through May 2021; General Counsel, The Nottingham Company from April 2014 through May 2018. |
Elizabeth A. Davin (1964),
Assistant Secretary (2022)
(formerly Secretary 2018-2022)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Davin has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 2004. |
Jessica K. Ditullio (1962),
Assistant Secretary (2014)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Ditullio has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 1990. |
Anthony Geron (1971),
Assistant Secretary (2019) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since September 2018; Lead Director and Counsel, AXA Equitable Life Insurance Company from 2015 to 2018 and Senior Director and Counsel, AXA Equitable Life Insurance Company from 2014 to 2015. |
Carmine Lekstutis (1980),
Assistant Secretary (2014) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Lekstutis has been with JPMorgan Chase & Co. since 2011. |
Max Vogel (1990),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Associate, Proskauer Rose LLP (law firm) from March 2017 to June 2021. |
Zachary E. Vonnegut-Gabovitch
(1986),
Assistant Secretary (2017) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Vonnegut-Gabovitch has been with JPMorgan Chase & Co. since September 2016. |
Frederick J. Cavaliere (1978),
Assistant Treasurer (2015)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Cavaliere has been with JPMorgan Chase & Co. since May 2006. |
Michael M. D’Ambrosio (1969),
Assistant Treasurer (2014) | Managing Director, J.P. Morgan Investment Management Inc. Mr. D’Ambrosio has been with J.P. Morgan Investment Management Inc. since 2012. |
Aleksandr Fleytekh (1972),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Mr. Fleytekh has been with J.P. Morgan Investment Management Inc. since February 2012. |
Shannon Gaines (1977),
Assistant Treasurer (2019)* | Executive Director, J.P. Morgan Investment Management Inc. Mr. Gaines has been with J.P. Morgan Investment Management Inc. since January 2014. |
Jeffrey D. House (1972),
Assistant Treasurer (2023)* | Vice President, J.P. Morgan Investment Management Inc. Mr. House has been with J.P. Morgan Investment Management Inc. since July 2006. |
Michael Mannarino (1985),
Assistant Treasurer (2023) | Vice President, J.P. Morgan Investment Management Inc. Mr. Mannarino has been with J.P. Morgan Investment Management Inc. since 2014. |
| J.P. Morgan Exchange-Traded Funds | |
OFFICERS(Unaudited) (continued)
Nektarios E. Manolakakis (1972),
Assistant Treasurer (2020) | Executive Director, J.P. Morgan Investment Management Inc. since February 2021, formerly Vice President, J.P. Morgan Investment Management Inc. since 2014; Vice President, J.P. Morgan Corporate & Investment Bank 2010-2014. |
Todd McEwen (1981),
Assistant Treasurer (2020)* | Vice President, J.P. Morgan Investment Management Inc. Mr. McEwen has been with J.P. Morgan Investment Management Inc. since 2010. |
Joseph Parascondola (1963),
Assistant Treasurer (2023)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Parascondola has been with J.P. Morgan Investment Management Inc. since 2006. |
Gillian I. Sands (1969),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Ms. Sands has been with J.P. Morgan Investment Management Inc. since September 2012. |
|
The contact address for each of the officers, unless otherwise noted, is 277 Park Avenue, New York, NY 10172. |
| The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| The contact address for the officer is 575 Washington Boulevard, Jersey City, NJ 07310. |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on your purchase and sales of Fund shares and (2) ongoing costs, primarily management fees. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these ongoing costs with the ongoing costs of investing in other funds. The examples assume that you had a $1,000 investment at the beginning of the reporting period, May 1, 2023, and continued to hold your shares at the end of the reporting period, October 31, 2023.
Actual Expenses
For each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Fund under the heading titled “Expenses Paid During the
Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The examples also assume all dividends and distributions have been reinvested. The examples do not take into account brokerage commissions that you pay when purchasing or selling shares of a Fund.
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | Expenses Paid During the Period | |
JPMorgan Active China ETF | | | | |
| | | | |
| | | | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Global Select Equity ETF | | | | |
| | | | |
| | | | |
JPMorgan Hedged Equity Laddered Overlay ETF | | | | |
| | | | |
| | | | |
JPMorgan International Growth ETF | | | | |
| | | | |
| | | | |
JPMorgan International Value ETF | | | | |
| | | | |
| | | | |
|
| Expenses are equal to each Fund's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 33/365 (to reflect the actual period). The Fund commenced operations on September 28, 2023. |
| Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 48/365 (to reflect the actual period). The Fund commenced operations on September 13, 2023. |
| J.P. Morgan Exchange-Traded Funds | |
LIQUIDITY RISK MANAGEMENT PROGRAM(Unaudited)
Each of the Funds covered in this report has adopted the J.P. Morgan Funds and J.P. Morgan Exchange-Traded Funds Amended and Restated Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Program seeks to assess, manage and review each Fund’s Liquidity Risk. “Liquidity Risk” is defined as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. Pursuant to an exemptive order (the “Exemptive Order”) from the Securities and Exchange Commission, the Program permits the Funds to use liquidity definitions and classification methodologies that differ from the requirements under the Liquidity Rule in some respects. Among other things, the Liquidity Rule requires that a written report be provided to the Board of Trustees (the “Board”) on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of any Highly Liquid Investment Minimum (“HLIM”), where applicable, and any material changes to the Program.
The Board has appointed J.P. Morgan Asset Management’s Liquidity Risk Forum to be the program administrator for the Program (the “Program Administrator”). In addition to regular reporting at each of its quarterly meetings, on February 7, 2023, the Board reviewed the Program Administrator’s annual written report (the “Report”) concerning the operation of the Program for the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, where applicable, the operation of a Fund’s HLIM. There were no material changes to the Program during the Program Reporting Period.
The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program has been adequately and effectively implemented with respect to each Fund. Such information and factors included, among other things: (1) the effectiveness of the Program with respect to the identification of each Fund that qualifies as an “In-Kind ETF” (as defined in the Liquidity Rule); (2) the liquidity risk framework used to assess, manage, and periodically review each Fund’s Liquidity Risk and the results of this assessment; (3) the methodology and inputs for classifying the investments of a Fund (other than an In-Kind ETF) into one of the required liquidity categories that reflect an estimate of the liquidity of those investments under current market conditions (and, for In-Kind ETFs, the methodology and inputs for determining whether any investments should be classified as “Illiquid Investments” (as defined or modified under the Program)); (4) whether a Fund (other than an In-Kind ETF) invested primarily in “Highly Liquid Investments” (as defined or modified under the Program), as well as whether an HLIM should be established for a Fund (other than an In-Kind ETF) and the procedures for monitoring any HLIM; (5) whether a Fund invested more than 15% of its assets in “Illiquid Investments” and the procedures for monitoring for this limit; and (6) specific liquidity events arising during the Program Reporting Period. The Report further summarized the conditions of the Exemptive Order and whether all applicable Funds were in compliance with the terms of the Exemptive Order.
Based on this review, the Report concluded that: (1) the Program continues to be reasonably designed to effectively assess and manage each Fund’s Liquidity Risk; and (2) the Program has been adequately and effectively implemented with respect to each Fund during the Program Reporting Period.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INITIAL MANAGEMENT AGREEMENTS(Unaudited)
JPMorgan Global Select Equity ETF, JPMorgan Hedged Equity Laddered Overlay ETF and JPMorgan International Value ETF
The Board of Trustees (the “Board” or the “Trustees”) held meetings and approved the initial management agreements (each a “Management Agreement” and collectively, the “Management Agreements”) for the JPMorgan Global Select Equity ETF (the “Global Select Equity ETF”) and JPMorgan International Value ETF (the “International Value ETF”) on May 9-11, 2023 and for JPMorgan Hedged Equity Laddered Overlay ETF (the “Hedged Equity Laddered Overlay ETF”) on August 8-10, 2023. Each of the funds is referred to herein as a “Fund” and collectively, as the “Funds”. The Management Agreements were approved by a majority of the Trustees who are not “Interested Persons” (as defined in the Investment Company Act of 1940) of any party to each Management Agreement or any of their affiliates. In connection with the approval of each Management Agreement, the Trustees reviewed written materials prepared by J.P. Morgan Investment Management Inc. (the “Adviser”) and received oral presentations from Adviser personnel. Before voting on the proposed Management Agreements, the Trustees reviewed each Management Agreement with representatives of the Adviser and with counsel to the Funds and independent legal counsel to the Trustees and received a memorandum from independent legal counsel discussing the legal standards for their consideration of the proposed Management Agreements. They also considered information they received from the Adviser over the course of the year in connection with their oversight of other funds managed by the Adviser. The Trustees also discussed each proposed Management Agreement with independent legal counsel in executive session at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Management Agreement is provided below. The Trustees considered information provided with respect to the Funds and the approval of the Management Agreements. Each Trustee attributed his or her own evaluation of the significance of the various factors, and no factor alone was considered determinative. The Trustees determined that the proposed compensation to be received by the Adviser from each Fund under its Management Agreement was fair and reasonable and that initial approval of the Management Agreements was in the best interests of each Fund and its potential shareholders.
Summarized below are the material factors considered and discussed by the Trustees in reaching their conclusions:
Nature, Extent and Quality of Services Provided by the Adviser
In connection with the approval of each Fund’s initial Management Agreement, the Trustees considered the materials furnished specifically in connection with the approval of the
applicable Management Agreement, as well as other relevant information furnished for the Trustees, regarding the nature, extent, and quality of services provided by the adviser. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel;
• The qualifications, backgrounds and responsibilities of the portfolio management team to be primarily responsible for the day-to-day management of each Fund;
• The investment strategy for each Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy of each Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
• The administration services to be provided by the Adviser under the Management Agreements;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Funds and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Funds;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of services to be provided to the Funds by the Adviser.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits expected to be received by the Adviser and its affiliates as a result of their relationship with the Funds. Additionally, the Trustees considered that any fall-out or ancillary benefits would be comparable to those related to the other funds in the complex.
The Trustees also considered the benefits the Adviser is expected to receive as the result of the roles JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, plays as custodian, fund accountant and transfer agent for the Funds, including the profitability of those arrangements to JPMCB.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INITIAL MANAGEMENT AGREEMENTS(Unaudited) (continued)
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from potential economies of scale. The Trustees considered that under the Management Agreements, the Adviser will provide advisory and administrative services and will be responsible for substantially all expenses of each Fund under a “unitary fee structure.” The Trustees noted that the proposed unitary management fee for each Fund does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses would be limited even when a Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under its Management Agreement in the future. After considering the factors identified above, the Trustees concluded that each Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of management services and fee rates offered to clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for management styles substantially similar to that of each Fund. For the Global Select Equity ETF, Trustees considered that the Adviser or its affiliates offer other accounts with a substantially similar investment strategy as that of the Fund. The Trustees concluded that the fees to be charged to the Fund in comparison to those charged to such other clients were reasonable.
For the Hedged Equity Laddered Overlay ETF and International Value ETF, the Trustees considered the Adviser’s view that it does not manage other accounts with a substantially similar investment strategy as that of each of these Funds.
Investment Performance
The Trustees considered each Fund’s investment strategy and processes, the portfolio management team and competitive positioning against identified peer funds and concluded that the prospects for competitive future performance were acceptable.
Management Fees
The Trustees considered the contractual management fee rate that will be paid by each Fund to the Adviser and compared that rate to information prepared by Broadridge Investor Communications Solutions Inc. (“Broadridge”), an independent provider of investment company data, providing management fee rates paid by other funds in the same Morningstar category as each Fund. The Trustees also considered the fees paid to JPMCB, for custody, fund accounting, transfer agency and other related services for each Fund and the profitability of these arrangements to JPMCB.
The Trustees considered how each Fund will be positioned against peer funds, as identified by management and/or Broadridge, as well as how the peer funds included in the Broadridge data differed from the Funds. The Trustees also noted that because the Funds were not yet operational, no profitability information was available. After considering the factors identified above and other factors, in light of the information, the Trustees concluded that each Fund’s proposed management fee was fair and reasonable.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited)
JPMorgan ActiveBuilders Emerging Markets Equity ETF and JPMorgan International Growth ETF
The Board of Trustees (the “Board” or the “Trustees”) has established various standing committees composed of Trustees with diverse backgrounds, to which the Board has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board and its investment committees (Money Market and Alternative Products Committee, Equity Committee, and Fixed Income Committee) met regularly throughout the year and, at each meeting, considered factors that are relevant to their annual consideration of the continuation of the management agreements. The Board also met for the specific purpose of considering management agreement annual renewals. The Board held meetings June 20-21, 2023 and August 8-10, 2023, at which the Trustees considered the continuation of the management agreements for JPMorgan ActiveBuilders Emerging Markets Equity ETF and JPMorgan International Growth ETF (each a “Fund,” and collectively, the “Funds”) whose annual report is contained herein (each a “Management Agreement” and collectively, the “Management Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered each investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not parties to a Management Agreement or “interested persons” (as defined in the Investment Company Act of 1940) of any party to a Management Agreement or any of their affiliates, approved the continuation of each Management Agreement on August 10, 2023.
As part of their review of the Management Agreements, the Trustees considered and reviewed performance and other information about the Funds received from J.P. Morgan Investment Management Inc. (the “Adviser”). This information included the Funds’ performance as compared to the performance of their peers and benchmarks, and analyses by the Adviser of the Funds’ performance. In addition, at each of their regular meetings throughout the year, the Trustees considered reports on the performance of certain J.P. Morgan Funds provided by an independent investment consulting firm (the “independent consultant”). In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance and expense information compiled by Broadridge, using data from Lipper Inc. and/or Morningstar Inc., independent providers of investment company data (together, “Broadridge”). The Trustees’ independent consultant also provided additional quantitative and statistical analyses of certain Funds, including risk and performance return assessments as compared to the Funds’ objectives, benchmarks, and
peers. Before voting on the Management Agreements, the Trustees reviewed the Management Agreements with representatives of the Adviser, counsel to the Funds, and independent legal counsel to the Trustees, and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the Management Agreements. The Trustees also discussed the Management Agreements with independent legal counsel in executive sessions at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Management Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Funds throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighing the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from each Fund under the applicable Management Agreement was fair and reasonable under the circumstances, and determined that the continuance of each Management Agreement was in the best interests of each Fund and its shareholders.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of services provided to each Fund under the applicable Management Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel, including personnel changes, if any;
• The qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund, including personnel changes, if any;
• The investment strategy for each Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy for each Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited) (continued)
• The administration services provided by the Adviser in its role as Administrator;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Funds and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Funds;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates from providing services to each Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser and reviewed with the Board. The Trustees also recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, and taking into consideration the factors noted above, the Trustees concluded that the profitability to the Adviser under each Management Agreement was not unreasonable in light of the services and benefits provided to each Fund.
The Trustees also considered the fees earned by JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, for custody, fund accounting and other related services for each Fund, and the profitability of the arrangements to JPMCB.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees considered that the J.P. Morgan Funds' operating accounts are held at JPMCB, which, as a result, will receive float benefits for certain J.P. Morgan Funds, as applicable. The Trustees also noted that the Adviser supports a diverse set of products and services, which benefits the Adviser by allowing it to leverage its infrastructure to serve additional clients, including benefits that may be received by the Adviser and its affiliates in connection with the Funds’ potential investments in other funds advised by the Adviser. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser, as well as the Adviser’s use of affiliates to provide other services and the benefits to such affiliates of doing so. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Funds.
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from potential economies of scale. The Trustees considered that under the Management Agreements, the Adviser provides advisory and administrative services and is responsible for substantially all expenses of each Fund under a “unitary fee structure.” The Trustees noted that the unitary management fee for each Fund does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses are limited even when a Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under the Management Agreement in the future. The Trustees also concluded that all Funds benefited from the Adviser’s reinvestment in its operations to serve the Funds and their shareholders. The Trustees noted that the Adviser’s reinvestment ensures sufficient resources in terms of personnel and infrastructure to support the Funds. After considering the factors identified above, the Trustees concluded that the Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of management services and fee rates offered to other clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for investment management styles substantially similar to that of each Fund.
| J.P. Morgan Exchange-Traded Funds | |
The Trustees considered the complexity of investment management for registered investment companies relative to the Adviser’s other clients and noted differences, as applicable, in the fee structure and the regulatory, legal and other risks and responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered investment company involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the applicable registered investment company, typically bears the sub-advisory fee and that many responsibilities related to the advisory function are typically retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees receive and consider information about each Fund’s performance throughout the year. In addition, the Trustees received and considered absolute and/or relative performance information for the Funds in a report prepared by Broadridge. The Trustees considered the total return performance information, which included the ranking of the Funds within a performance universe comprised of funds with the same Broadridge investment classification and objective (the “Universe”), by total return for the applicable one-year periods. The Trustees reviewed a description of Broadridge’s methodology for selecting exchange-traded funds in each Fund’s Universe, and noted that Universe quintile rankings were not calculated if the number of funds in the Universe did not meet a predetermined minimum. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark and considered the performance information provided for the Funds at regular Board meetings by the Adviser and the Trustees’ independent consultant and also considered the special analysis prepared for certain Funds by the Trustees’ independent consultant. The Trustees also engaged with the Adviser to consider what steps might be taken to improve performance, as applicable. The Broadridge performance data noted by the Trustees as part of their review and the determinations made by the Trustees with respect to each Fund’s performance are summarized below:
The Trustees noted that the JPMorgan ActiveBuilders Emerging Markets Equity ETF’s performance was in the fifth quintile of the Universe for the one-year period ended December 31, 2022. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the indepen
dent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory under the circumstances.
The Trustees noted that the JPMorgan International Growth ETF’s performance was in the fifth quintile of the Universe for the one-year period ended December 31, 2022. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory under the circumstances.
Management Fees and Expense Ratios
The Trustees considered the contractual management fee rate paid by each Fund to the Adviser and compared the rate to the information prepared by Broadridge concerning management fee rates paid by other funds in the Universe, as well as a subset of funds within the Universe (the “Peer Group”). The Trustees reviewed a description of Broadridge’s methodology for selecting funds in the Peer Group and Universe, as applicable, and noted that Universe and Peer Group quintile rankings were not calculated if the number of funds in the Universe and/or Peer Group did not meet a predetermined minimum. The Trustees also reviewed information about other expenses and the total expense ratio for each Fund. The Trustees recognized that it can be difficult to make comparisons of management fees because there are variations in the services that are included in the fees paid by other funds. The Trustees’ determinations as a result of the review of each Fund’s management fees and expense ratios are summarized below:
The Trustees noted that the JPMorgan ActiveBuilders Emerging Markets Equity ETF’s net management fee and actual total expenses were in the second quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable light of the services provided to the Fund.
The Trustees noted that while Broadridge provided data for funds in the Peer Group and Universe for the JPMorgan International Growth ETF, Broadridge did not calculate quintile rankings due to the limited number of funds in both the Peer Group and Universe. After considering the fees relative to the funds in the Peer Group, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
| J.P. Morgan Exchange-Traded Funds | |
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2023. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2023. The information necessary to complete your income tax returns for the calendar year ending December 31, 2023 will be provided under separate cover.
Qualified Dividend Income (QDI)
Each Fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions and foreign tax credits (if applicable) treated as qualified dividends for the fiscal year ended October 31, 2023:
| |
JPMorgan Active China ETF | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | |
JPMorgan International Growth ETF | |
JPMorgan International Value ETF | |
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2023, the following Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses are as follows or amounts as finally determined:
| Total Foreign
Source Income | |
JPMorgan Active China ETF | | |
JPMorgan ActiveBuilders Emerging Markets Equity ETF | | |
JPMorgan International Growth ETF | | |
JPMorgan International Value ETF | | |
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the Funds.
Contact J.P. Morgan Exchange-Traded Funds at 1-844-457-6383 (844-4JPM ETF) for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The prospectus contains this and other information about the fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by visiting www.sipc.org or by calling SIPC at 202-371-8300.
Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC as an exhibit to its report on Form N-PORT. The Funds' Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. Each Fund's quarterly holdings can be found by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Effective January 24, 2023, the SEC adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
A description of each Fund's policies and procedures with respect to the disclosure of each Fund's holdings is available in the prospectuses and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-844-457-6383 and on the Funds' website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Adviser. A copy of the Funds' voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds' website at www.jpmorganfunds.com no later than August 31 of each year. The Funds' proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
© JPMorgan Chase & Co., 2023. All rights reserved. October 2023.
AN-ACT-ETF-1023
Annual Report
J.P. Morgan Exchange-Traded Funds
October 31, 2023
| | |
JPMorgan Social Advancement ETF | | |
JPMorgan Sustainable Consumption ETF | | |
CONTENTS
Investments in a Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when a Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of a Fund or the securities markets.
Prospective investors should refer to the Funds’ prospectuses for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Exchange-Traded Funds at (844) 457-6383 for a prospectus containing more complete information about a Fund, including management fees and other expenses. Please read it carefully before investing.
Shares are bought and sold throughout the day on an exchange at market price (not at net asset value) through a brokerage account, and are not individually subscribed and redeemed from a Fund. Shares may only be subscribed and redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
President's LetterDecember 14, 2023 (Unaudited)
Dear Shareholder,
While the U.S. economy generally performed well this year, global economic growth has been uneven in the face of elevated interest rates and heightened geopolitical tensions. Equity markets largely outperformed fixed income markets for the twelve months ended October 31, 2023, though rising yields lifted investor demand for certain types of bonds.
|
"The strong performance of financial markets in 2023 created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.” — Brian S. Shlissel
|
Inflationary pressures have receded sufficiently so far that the U.S. Federal Reserve declined to raise interest rates since September 2023 and signaled it may reduce rates three times in 2024. Both the European Central Bank and the Bank of England also declined to raise interest rates in the third quarter of 2023. Financial markets largely responded positively to the central banks’ policy stances, though the view that interest rates could remain “higher for longer” appeared to temper investor optimism.
Overall, corporate earnings and revenues within developed markets generally continued to grow through the first three quarters of 2023, though certain surveys indicated many businesses anticipate demand to slow next year. Emerging markets experienced a wider dispersion in economic performance and corporate results, partly due to slower economic growth in China, post-pandemic changes to global supply chains and elevated debt servicing costs.
While some assert that the risk of economic recession has receded in 2023, the risk remains. China’s struggling property sector could further undermine economic growth and spill over to certain commodity exporting nations. Additionally, there is no clear timing with regard to the resolution of the war in Ukraine, which continues to impact global energy and grain supplies. The Israel-Hamas conflict has the potential to both widen militarily and to impact international trade and prices for energy and food. However, financial markets have generally continued to function without major disruptions during the period.
The strong performance of financial markets has created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.
Our suite of investment solutions seeks to provide investors with the ability to build durable portfolios that meet their financial goals, regardless of macroeconomic and geopolitical uncertainties.
Sincerely,
Brian S. Shlissel
President, J.P. Morgan Exchange-Traded Funds
J.P. Morgan Asset Management
1-844-4JPM-ETF or jpmorgan.com/etfs for more information
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds
MARKET OVERVIEWTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
Equity markets continued to outperform bond markets during the period, generating positive returns largely due to gains made during the first half of 2023. Following a surge in U.S. equity prices, investors largely sought lower equity valuations in international markets in the second half of the period.
Overall, equities in international developed markets outperformed both emerging market and U.S. equities. Growth stocks and large capitalization stocks largely outperformed value stocks and mid cap and small cap stocks. Within fixed income markets, emerging markets debt and lower-rated bonds in developed markets generally outperformed U.S. Treasury bonds.
While the U.S. Federal Reserve, the European Central Bank and The Bank of England continued to raise interest rates at regular intervals through the first half of 2023, declining inflationary pressures allowed all three central banks to withhold further increases at the end of the reporting period.
Corporate earnings were generally better-than-expected for most of the period but results for the third quarter of 2023 showed some slowing in earnings and revenue growth. Tight labor markets in the U.S. eased somewhat in the final months of the period and the jobless rate rose to 3.8% in October 2023, which raised investor expectations that inflation would continue to slow.
Global energy prices largely fell during the period amid slowing demand from China and leading industrialized nations. Crude oil prices spiked briefly in September 2023 when Saudi Arabia and Russia extended production cuts and again in early October at the outbreak of the Israel-Hamas conflict. However, global petroleum prices receded by the end of the period as economic data, including U.S. gasoline consumption, continued to indicate slowing global demand.
Notably, financial sector stocks were roiled by the collapse of Silicon Valley Bank in late March 2023, followed closely by the failures of Signature Bank and Credit Suisse. In each case, government regulators moved to prevent the erosion of consumer and investor confidence in the banking system.
For the twelve months ended October 31, 2023, the MSCI EAFE Index returned 15.01%, the MSCI Emerging Markets Index returned 11.26% and the S&P 500 Index returned 10.14%.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Social Advancement ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE ***
The JPMorgan Social Advancement ETF (the “Fund”) seeks to achieve long-term capital appreciation by investing in companies that the adviser believes are facilitating social and economic advancement.
INVESTMENT APPROACH
The Fund may invest primarily in common stocks, depositary receipts and real estate investment trusts of companies that the adviser believes are facilitating the social and economic empowerment of people and communities across all levels of society through access to goods and services that allow people to survive and thrive. The Fund uses a "thematic" investment approach that seeks to identify and invest in companies that are relevant to the investment theme of social advancement, and selects companies within key sub-themes, such as essential amenities, affordable housing and infrastructure, health care and wellbeing, education and training talent, attainable financing, and accessing the digital ecosystem.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund generated a positive absolute return and underperformed the MSCI All Country World Index (the “Index”).
The Fund’s security selection in the information technology and health care sectors was a leading contributor to absolute performance, while the Fund’s security selection in the real estate and consumer staples sectors was a leading detractor from absolute performance. The Fund had no holdings in the energy and utilities sectors.
Leading individual contributors to the Fund’s performance included Microsoft Corp., Novo Nordisk AS and Relx PLC. Shares of Microsoft, an information technology conglomerate, rose amid a general surge in large capitalization technology stocks during the period. Shares of Novo Nordisk, a Danish
pharmaceuticals and health care products provider, rose amid consumer demand for the company’s weight-loss drug. Shares of Relx, a U.K. provider of research and consulting services, rose after reporting better-than expected earnings and revenue for the first half of 2023.
Leading individual detractors from the Fund’s performance included Charles Schwab Corp., Dollar General Corp. and IDP Education Ltd. Shares of Charles Schwab, a discount financial services provider, fell in March 2023 amid investor concerns about the value of its bond holdings at U.S. banks. Shares of Dollar General, a discount retail chain, fell after the company reported weaker-than-expected quarterly earnings and lowered its forecast for 2023 sales and earnings. Shares of IDP Education, an Australian education services provider, fell amid investor concerns about greater competition in the administration of English proficiency tests for student visas in Canada.
Relative to the Index, the Fund’s security selection in the communication services and real estate sectors was a leading detractor from performance, while the Fund’s security selection in the health care sector and its underweight position in the energy sector, where the Fund had no holdings, were leading contributors to relative performance.
HOW WAS THE FUND POSITIONED?
As a result of the adviser’s thematic investment process, the Fund’s largest allocations during the period were to the financials and health care sectors and its smallest allocations were to the materials and real estate sectors. The Fund had no allocations to the utilities and energy sectors.
The Fund’s largest thematic allocations were to the health care and well-being and the attainable financing sub-themes, while its smallest allocations were to the essential amenities and education and training talent sub-themes.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Social Advancement ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $51.45 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NASDAQ Stock Market® LLC As of October 31, 2023, the closing price was $51.55.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| RELX plc (United Kingdom) | |
| | |
| Novo Nordisk A/S, Class B (Denmark) | |
| | |
| ASML Holding NV (Netherlands) | |
| Mastercard, Inc., Class A | |
| | |
| | |
| Vertex Pharmaceuticals, Inc. | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan Social Advancement ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (9/7/22 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 7, 2022.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Social Advancement ETF and the MSCI ACWI Index (net total return) from September 7, 2022 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect
reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI ACWI Index (net total return) is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of large- and mid-cap stocks in developed and emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Consumption ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE ***
The JPMorgan Sustainable Consumption ETF (the “Fund”) seeks to achieve long-term capital appreciation by investing in companies that the adviser believes are developing solutions that help preserve natural resources, improve resource use, or reduce waste.
INVESTMENT APPROACH
The Fund invests primarily in common stocks, and depositary receipts and real estate investment trusts of companies that the adviser believes are developing solutions that reduce human impact on natural resources in specific communities, regions or around the globe. The Fund uses a "thematic" investment approach that seeks to identify and invest in companies that are relevant to the investment theme of sustainable consumption and selects companies within key sub-themes, such as sustainable water systems, sustainable agriculture and food, sustainable production technologies, sustainable materials and design, and recycling and re-use.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund generated a negative absolute return and underperformed the MSCI All Country World Index (the “Index”).
The Fund’s security selection in the consumer staples and materials sectors was a leading detractor from absolute performance, while the Fund’s security selection in the information technology and industrial sectors was a leading contributor to absolute performance.
Leading individual detractors from Fund performance included Darling Ingredients Inc., Trimble Inc. and Valmont Industries Inc. Shares of Darling Ingredients, an agricultural products and services provider, fell after the company reported lower-than-expected revenue during the period. Shares of Trimble, an electronic equipment and instruments manufacturer, fell after the company reported lower-than-
expected earnings and revenue for the fourth quarter of 2022. Shares of Valmont Industries, a construction and engineering services provider, fell after the company reported weaker-than-expected revenue during the period.
Leading individual contributors to Fund performance included the Fund’s positions in Novo Nordisk AS, Cadence Design Systems Inc. and Trane Technologies PLC. Shares of Novo Nordisk, a Danish pharmaceuticals and health care products provider, rose amid consumer demand for the company’s weight-loss drug. Shares of Cadence Design Systems, an applications software developer, rose after the company reported better-than-expected earnings and revenue for the third quarter of 2023. Shares of Trane Technologies, a U.S. supplier of heating, cooling and ventilation systems, rose after the company reported consecutive quarters of better-than-expected earnings and revenue during the period.
Relative to the Index, the Fund’s security selection in the information technology and industrials sectors was a leading detractor from performance, while the Fund’s underweight positions in the financials and utilities sectors, where it had no holdings, were leading contributors to relative performance.
HOW WAS THE FUND POSITIONED?
As a result of the adviser’s thematic investment approach, the Fund’s largest allocations during the period were to the industrials and information technology sectors and the smallest allocations were to the energy and consumer discretionary sectors. The Fund had no allocations to the utilities, financials and communication services sectors.
The Fund’s largest thematic allocations were to the sustainable agriculture and food and the sustainable production technologies sub-themes and its smallest allocations were to the sustainable materials and design and recycling and re-use sub-themes.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $46.25 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NASDAQ Stock Market® LLC As of October 31, 2023, the closing price was $46.54.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) | |
| Brambles Ltd. (Australia) | |
| | |
| NXP Semiconductors NV (China) | |
| SIG Group AG (Switzerland) | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Consumption ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan Sustainable Consumption ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (9/7/22 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 7, 2022.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Sustainable Consumption ETF and the MSCI ACWI Index (net total return) from September 7, 2022 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect
reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI ACWI Index (net total return) is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of large- and mid-cap stocks in developed and emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Social Advancement ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
Novo Nordisk A/S, Class B | | |
|
| | |
|
| | |
|
| | |
|
Apollo Hospitals Enterprise Ltd. | | |
| | |
| | |
|
Bank Rakyat Indonesia Persero Tbk. PT | | |
|
| | |
| | |
| | |
|
FinecoBank Banca Fineco SpA | | |
|
| | |
| | |
Recruit Holdings Co. Ltd. | | |
| | |
Tokio Marine Holdings, Inc. | | |
| | |
| | |
|
Wal-Mart de Mexico SAB de CV | | |
| | |
|
|
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
|
| | |
|
| | |
|
| | |
|
| | |
|
| | |
| | |
| | |
|
| | |
B&M European Value Retail SA | | |
| | |
| | |
| | |
|
| | |
| | |
Boston Scientific Corp. * | | |
Charles Schwab Corp. (The) | | |
| | |
| | |
| | |
| | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
Mastercard, Inc., Class A | | |
| | |
| | |
| | |
| | |
| | |
| | |
Sun Communities, Inc., REIT | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Social Advancement ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
Thermo Fisher Scientific, Inc. | | |
| | |
| | |
Vertex Pharmaceuticals, Inc. * | | |
| | |
| | |
| | |
Total Common Stocks
(Cost $10,264,740) | | |
Short-Term Investments — 2.4% |
Investment Companies — 2.4% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c)(Cost $277,030) | | |
Total Investments — 97.5%
(Cost $10,541,770) | | |
Other Assets Less Liabilities — 2.5% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Limited liability company |
| Real Estate Investment Trust |
| |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
Semiconductors & Semiconductor Equipment | |
Consumer Staples Distribution & Retail | |
| |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
Construction & Engineering | |
Health Care Equipment & Supplies | |
Textiles, Apparel & Luxury Goods | |
| |
Commercial Services & Supplies | |
| |
| |
Wireless Telecommunication Services | |
| |
| |
| |
Life Sciences Tools & Services | |
| |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Consumption ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
|
| | |
West Fraser Timber Co. Ltd. | | |
| | |
|
Chacha Food Co. Ltd., Class A | | |
| | |
| | |
|
Novo Nordisk A/S, Class B | | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
| | |
|
| | |
| | |
|
|
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
| | |
|
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | | |
|
| | |
| | |
| | |
|
Advanced Drainage Systems, Inc. | | |
| | |
| | |
| | |
| | |
Boston Scientific Corp. * | | |
Cadence Design Systems, Inc. * | | |
| | |
| | |
Darling Ingredients, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
Intuitive Surgical, Inc. * | | |
| | |
| | |
| | |
Rockwell Automation, Inc. | | |
| | |
Sprouts Farmers Market, Inc. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Consumption ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
| | |
| | |
| | |
| | |
| | |
Watts Water Technologies, Inc., Class A | | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $10,345,701) | | |
Short-Term Investments — 3.6% |
Investment Companies — 3.6% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b)(Cost $380,064) | | |
Total Investments — 99.3%
(Cost $10,725,765) | | |
Other Assets Less Liabilities — 0.7% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| |
| Real Estate Investment Trust |
| Non-income producing security. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
Semiconductors & Semiconductor Equipment | |
Commercial Services & Supplies | |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
Health Care Providers & Services | |
| |
| |
| |
Health Care Equipment & Supplies | |
| |
| |
| |
Life Sciences Tools & Services | |
| |
Hotels, Restaurants & Leisure | |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023
| JPMorgan Social
Advancement ETF | JPMorgan Sustainable
Consumption ETF |
| | |
Investments in non-affiliates, at value | | |
Investments in affiliates, at value | | |
| | |
Foreign currency, at value | | |
| | |
Investment securities sold | | |
Dividends from non-affiliates | | |
Dividends from affiliates | | |
| | |
| | |
| | |
| | |
| | |
Investment securities purchased | | |
| | |
Management fees (See Note 3.A.) | | |
| | |
| | |
| | |
| | |
Total distributable earnings (loss) | | |
| | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | |
Net asset value, per share | | |
Cost of investments in non-affiliates | | |
Cost of investments in affiliates | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023
| JPMorgan Social
Advancement ETF | JPMorgan Sustainable
Consumption ETF |
| | |
Interest income from non-affiliates | | |
Interest income from affiliates | | |
Dividend income from non-affiliates | | |
Dividend income from affiliates | | |
Foreign taxes withheld (net) | | |
| | |
| | |
Management fees (See Note 3.A.) | | |
Interest expense to affiliates | | |
| | |
Net investment income (loss) | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | |
Net realized gain (loss) on transactions from: | | |
Investments in non-affiliates | | |
Investments in affiliates | | |
Foreign currency transactions | | |
| | |
Change in net unrealized appreciation/depreciation on: | | |
Investments in non-affiliates | | |
Investments in affiliates | | |
Foreign currency translations | | |
Change in net unrealized appreciation/depreciation | | |
Net realized/unrealized gains (losses) | | |
Change in net assets resulting from operations | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED
| JPMorgan Social
Advancement ETF | JPMorgan Sustainable
Consumption ETF |
| Year Ended
October 31, 2023 | Period Ended
October 31, 2022 (a) | Year Ended
October 31, 2023 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
Net increase in shares from transactions | | | | |
(a)
Commencement of operations was September 7, 2022.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan Social Advancement ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
September 7, 2022 (f) through October 31, 2022 | | | | | |
JPMorgan Sustainable Consumption ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
September 7, 2022 (f) through October 31, 2022 | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The closing price was used to calculate the market price return. |
| Commencement of operations. |
| Since the shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of secondary market trading, the net asset value is used as a proxy for the secondary market trading price to calculate the market returns. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Portfolio
turnover
rate (c) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023
1. Organization
J.P. Morgan Exchange-Traded Fund Trust (the “Trust”) was formed on February 25, 2010, and is governed by a Declaration of Trust as amended and restated February 19, 2014, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 2 separate funds of the Trust (each, a "Fund" and collectively, the "Funds") covered by this report:
| Diversification Classification |
JPMorgan Social Advancement ETF | |
JPMorgan Sustainable Consumption ETF | |
The investment objective of JPMorgan Social Advancement ETF ("Social Advancement ETF") is to seek to achieve long-term capital appreciation by investing in companies that the adviser believes are facilitating social and economic advancement.
The investment objective of JPMorgan Sustainable Consumption ETF ("Sustainable Consumption ETF") is to seek to achieve long-term capital appreciation by investing in companies that the adviser believes are developing solutions that help preserve natural resources, improve resource use, or reduce waste.
J.P. Morgan Investment Management Inc. (“JPMIM”), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), acts as adviser (the “Adviser”) and administrator (the “Administrator”) to the Funds.
Shares of each Fund are listed and traded at market price on an exchange as follows:
| |
| |
Sustainable Consumption ETF | |
Market prices for the Funds’ shares may be different from their net asset value (“NAV”).
The Funds issue and redeem their shares on a continuous basis, through JPMorgan Distribution Services, Inc. (the “Distributor” or “JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, at NAV in large blocks of shares, referred to as “Creation Units”. Creation Units are issued and redeemed in exchange for a basket of securities and/or cash. A cash amount may be substituted if a Fund has sizeable exposure to market or sponsor restricted securities. Shares are generally traded in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Only individuals or institutions that have entered into an authorized participant agreement with the Distributor may do business directly with the Funds (each, an “Authorized Participant”).
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A. Valuation of Investments — Investments are valued in accordance with GAAP and the Funds' valuation policies set forth by, and under the supervision and responsibility of, the Board of Trustees of the Trust (the "Board"), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at their market value and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
Under Section 2(a)(41) of the 1940 Act, the Board is required to determine fair value for securities that do not have readily available market quotations. Under SEC Rule 2a-5 (Good Faith Determinations of Fair Value), the Board may designate the performance of these fair valuation determinations to a valuation designee. The Board has designated the Adviser as the “Valuation Designee” to perform fair valuation determinations for the Funds on behalf of the Board subject to appropriate oversight by the Board. The Adviser, as Valuation Designee, leverages the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to help oversee and carry out the policies for the valuation of investments held in the Funds. The Adviser, as Valuation Designee, remains responsible for the valuation determinations.
| J.P. Morgan Exchange-Traded Funds | |
This oversight by the AVC includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight including, but not limited to, consideration of macro or security specific events, market events, and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and, at least on a quarterly basis, with the AVC and the Board.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the NAVs of the Funds are calculated on a valuation date. Certain foreign equity instruments are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post closing, but prior to the time the NAVs are calculated.
Investments in open-end investment companies (“Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer-related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds' investments are summarized into the three broad levels listed below.
•
Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments.
•
Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.
•
Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds' assumptions in determining the fair value of investments).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments ("SOIs"):
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Social Advancement ETF (continued) | | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
Sustainable Consumption ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the NAVs of the Funds.
As of October 31, 2023, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A and/or Regulation S under the Securities Act.
| J.P. Morgan Exchange-Traded Funds | |
C. Securities Lending — The Funds are authorized to engage in securities lending in order to generate additional income. The Funds are able to lend to approved borrowers. Citibank N.A. (“Citibank”) serves as lending agent for the Funds, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in the Class IM Shares of the JPMorgan U.S. Government Money Market Fund and the Agency SL Class Shares of the JPMorgan Securities Lending Money Market Fund. The Funds retain the interest earned on cash collateral investments but are required to pay the borrower a rebate for the use of the cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Funds or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Income from securities lending (net). The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statements of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from the borrower so as to maintain a collateralization level of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities), subject to certain de minimis amounts.
The value of securities out on loan is recorded as an asset on the Statements of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of collateral investments are disclosed on the SOIs.
The Funds bear the risk of loss associated with the collateral investments and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, the Funds may incur losses that exceed the amount they earned on lending the security. Upon termination of a loan, the Funds may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the collateral investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Funds from losses resulting from a borrower’s failure to return a loaned security.
The Funds did not lend out any securities during the year ended October 31, 2023.
D. Investment Transactions with Affiliates — The Funds invested in Underlying Funds advised by the Adviser. An issuer which is under common control with a Fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. The Underlying Funds’ distributions may be reinvested into such Underlying Funds. Reinvestment amounts are included in the purchases at cost amounts in the tables below.
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Sustainable Consumption ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
E. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments in non-affiliates on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund's books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at year end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
F. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis.
Dividend income, net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary, once the issuers provide information about the actual composition of the distributions.
| J.P. Morgan Exchange-Traded Funds | |
G. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund's policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds' tax positions for all open tax years and has determined that as of October 31, 2023, no liability for Federal income tax is required in the Funds' financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each Fund's Federal tax returns for the prior three fiscal years, or since inception if shorter, remain subject to examination by the Internal Revenue Service.
H. Foreign Taxes —The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. When a capital gains tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
I. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually. Net realized capital gains, if any, are distributed by each Fund at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax basis treatment.
The following amounts were reclassified within the capital accounts:
| | Accumulated
undistributed
(distributions in
excess of)
net investment
income | Accumulated
net realized
gains (losses) |
| | | |
Sustainable Consumption ETF | | | |
The reclassifications for the Funds relate primarily to foreign currency gains or losses.
3. Fees and Other Transactions with Affiliates
A. Management Fee— JPMIM manages the investments of each Fund pursuant to a Management Agreement. For such services, JPMIM is paid a fee which is accrued daily and paid no more frequently than monthly based on each Fund's respective average daily net assets at the following rate:
| |
| |
Sustainable Consumption ETF | |
Under each Management Agreement, JPMIM is responsible for substantially all expenses of each Fund, (including expenses of the Trust relating to each Fund), except for the management fees, payments under the Funds' 12b-1 plan (if any), interest expenses, dividend and interest expenses related to short sales, taxes, acquired fund fees and expenses (other than fees for funds advised by the Adviser and/or its affiliates), costs of holding shareholder meetings, and litigation and potential litigation and other extraordinary expenses not incurred in the ordinary course of each Fund’s business. Additionally, each Fund is responsible for its non-operating expenses, including brokerage commissions and fees and expenses associated with each Fund’s securities lending program, if applicable. For the avoidance of doubt, the Adviser’s payment of such expenses may be accomplished through a Fund’s payment of such expenses and a corresponding reduction in the fee payable to the Adviser, provided, however, that if the amount of expenses paid by a Fund exceeds the fee payable to the Adviser, the Adviser will reimburse that Fund for such amount.
B. Administration Fee — JPMIM provides administration services to the Funds. Pursuant to each Management Agreement, JPMIM is compensated as described in Note 3.A.
JPMorgan Chase Bank, N.A. (“JPMCB”), a wholly-owned subsidiary of JPMorgan, serves as the Funds' sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the management fees payable to JPMIM.
C. Custodian, Accounting and Transfer Agent Fees— JPMCB provides custody, accounting and transfer agency services to the Funds. For performing these services, JPMIM pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses.
Additionally, Authorized Participants generally pay transaction fees associated with the creation and redemption of Fund shares. These fees are paid to JPMIM to offset certain custodian charges that are covered by each Management Agreement.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Interest income earned on cash balances at the custodian, if any, is included in Interest income from affiliates on the Statements of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statements of Operations.
D. Distribution Services — The Distributor or its agent distributes Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of each Fund. JPMDS receives no fees for their distribution services under the distribution agreement with the Trust (the “Distribution Agreement”). Although the Trust does not pay any fees under the Distribution Agreement, JPMIM pays JPMDS for certain distribution related services.
E. Waivers and Reimbursements — The Funds may invest in one or more money market funds advised by the Adviser (affiliated money market funds). The fees for the affiliated money market funds, except for investments of securities lending cash collateral, are covered under each Management Agreement as described in Note 3.A.
F. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. Such officers receive no compensation from the Funds for serving in their respective roles.
The Board designated and appointed a Chief Compliance Officer to the Funds pursuant to Rule 38a-1 under the 1940 Act. The fees associated with the office of the Chief Compliance Officer are paid for by JPMIM as described in Note 3.A.
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities LLC, an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended October 31, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Purchases
(excluding
U.S. Government) | Sales
(excluding
U.S. Government) |
| | |
Sustainable Consumption ETF | | |
During the year ended October 31, 2023, there were no purchases or sales of U.S. Government securities.
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
| | | | |
Sustainable Consumption ETF | | | | |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals.
The tax character of distributions paid during the year ended October 31, 2023 was as follows:
| | |
| | |
Sustainable Consumption ETF | | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
| J.P. Morgan Exchange-Traded Funds | |
As of October 31, 2023, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows:
| Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
(Tax Basis Capital
Loss Carryover) | Unrealized
Appreciation
(Depreciation) |
| | | |
Sustainable Consumption ETF | | | |
The cumulative timing differences primarily consist of trustee deferred compensation.
At October 31, 2023, the following Funds had net capital loss carryforwards, which are available to offset future realized gains:
| Capital Loss Carryforward Character |
| | |
| | |
Sustainable Consumption ETF | | |
During the year ended October 31, 2023, the following Fund utilized capital loss carryforwards as follows:
6. Capital Share Transactions
The Trust issues and redeems shares of the Funds only in Creation Units through the Distributor at NAV. Capital shares transactions detail can be found in the Statements of Changes in Net Assets.
Shares of the Funds may only be purchased or redeemed by Authorized Participants. Such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the Funds' shares outstanding and act as executing or clearing broker for investment transactions on behalf of the Funds. An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”); or (2) a DTC Participant; which, in either case, must have executed an agreement with the Distributor.
Creation Units of a Fund may be created in advance of receipt by the Trust of all or a portion of the applicable basket of equity securities and other instruments (“Deposit Instruments”) and cash as described in the Funds’ registration statement. In these instances, the initial Deposit Instruments and cash must be deposited in an amount equal to the sum of the cash amount plus at least 105% for the Funds of the market value of undelivered Deposit Instruments. A transaction fee may be imposed to offset transfer and other transaction costs associated with the purchase or redemption of Creation Units.
7. Borrowings
Effective November 1, 2022, the Funds rely upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Funds because the Funds and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
The Funds had no borrowings outstanding from another fund, or loans outstanding to another fund, during the year ended October 31, 2023.
The Trust and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until October 29, 2024.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
The Funds had no borrowings outstanding from the unsecured, uncommitted credit facility during the year ended October 31, 2023.
Effective August 8, 2023, the Trust, along with certain other trusts for J.P. Morgan Funds (“Borrowers”), has entered into an existing joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. Although the Trust is effectively part of the Credit Facility as of August 8, 2023, it is not eligible to draw on the Credit Facility, and will not incur costs associated with being a part of the Credit Facility, until on or about May 28, 2024.
This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a minimum of $25 million in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the fund must remediate within three business days with respect to the $25 million minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% (the "Applicable Margin"), plus the greater of the federal funds effective rate or the one-month Adjusted Secured Overnight Financing Rate ("SOFR"). Effective August 8, 2023, the Credit Facility has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended October 31, 2023.
8. Risks, Concentrations and Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund's maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be brought against each Fund. However, based on experience, the Funds expect the risk of loss to be remote.
Significant shareholder transactions by these shareholders may impact the Funds' performance and liquidity.
As of October 31, 2023, the Adviser owned shares representing more than 10% of net assets of the following Funds:
| |
| |
Sustainable Consumption ETF | |
Social Advancement ETF’s investment strategy and the Adviser’s determinations of what is considered social advancement may result in Social Advancement ETF investing in securities or industry sectors that underperform the market and other funds that do not have the same considerations. Social Advancement ETF's focus on securities of issuers that, in the Adviser’s opinion, are facilitating social and economic advancement and benefit from growing demand for investments that are furthering social advancement will result in exposure to certain market segments, including essential amenities, housing and infrastructure, healthcare and wellbeing, education and training, financing, and digital technology. Such focus may result in Social Advancement ETF’s forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for social advancement reasons when it might otherwise be disadvantageous for it to do so. In addition, there is a risk that the companies selected for their relation to the sub-themes do not operate as expected when addressing social advancement issues. Social Advancement ETF will be more susceptible to events or factors affecting such market segments, and the market prices of its portfolio securities may be more volatile than those of funds that are more diversified. The factors that the Adviser considers in evaluating social advancement and exposure to a sub-theme may change over time. There may also be differences in interpretations of what it means for a company to “facilitate social and economic advancement.” The portfolio decisions that the Adviser makes may differ with other investors’ or investment managers’ views. Social Advancement ETF is particularly exposed to, and may be negatively impacted by changes in global and regional standards, environmental protection regulatory actions, government regulation of affordable housing and medical facilities, changes in government standards and subsidy levels, changes in taxation and other domestic and international political, regulatory and economic developments. In addition, scientific developments, such as breakthroughs in electrical and water engineering and advancements in technology, including digital technology and changes in governmental policies relating to Social Advancement ETF’s sub-themes, may affect investments which could in turn affect these companies. Such companies also may be significantly affected by technological changes in industries focusing on essential amenities, affordable housing, education and training, medical and wellbeing, and digital infrastructure.
Sustainable Consumption ETF’s investment strategy and the Adviser’s determinations of what is considered sustainable consumption may result in Sustainable Consumption ETF investing in securities or industry sectors that underperform the market and other funds that do not have the same considerations. Sustainable Consumption ETF’s focus on securities of issuers that, in the Adviser’s opinion, are developing solutions to facilitate sustainable consumption and benefit from growing demand for such investments will result in exposure to certain market segments, including water, agriculture, production, materials and design, and recycling and reuse. Such focus may result in Sustainable Consumption ETF’s forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for sustainability reasons when it might otherwise be disadvantageous for it to do so. In addition, there is a risk that the companies selected for their relation to the sub-themes do not
| J.P. Morgan Exchange-Traded Funds | |
operate as expected when addressing sustainability issues. Sustainable Consumption ETF will be more susceptible to events or factors affecting such market segments, and the market prices of its portfolio securities may be more volatile than those of funds that are more diversified. The factors that the Adviser considers in evaluating sustainable consumption and exposure to a sub-theme may change over time. There may also be differences in interpretations of what it means for a company to help “preserve natural resources, improve resource use, or reduce waste.” The portfolio decisions that the Adviser makes may differ with other investors’ or investment managers’ views. Sustainable Consumption ETF is particularly exposed to, and may be negatively impacted by changes in global and regional standards, environmental protection regulatory actions and government regulation of natural resources, agriculture and manufacturing, changes in government standards and subsidy levels, changes in taxation and other domestic and international political, regulatory and economic developments. In addition, scientific developments, such as breakthroughs in water, agricultural, or industrial engineering and advancements in technology, including digital technology and changes in governmental policies relating to Sustainable Consumption ETF’s sub-themes, may affect investments which could in turn affect these companies. Such companies also may be significantly affected by technological changes in industries focusing on water systems, agriculture, production, materials and design, and recycling and reuse.
The Funds may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of foreign countries or regions, which may vary throughout the period. Such concentrations may subject each of these Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
Investing in securities of foreign countries may include certain risks and considerations not typically associated with investing in U.S. securities. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and currencies, and future and adverse political, social and economic developments.
The Funds invest in foreign issuers and foreign securities (including depositary receipts) that are subject to additional risks, including political and economic risks, unstable governments, civil conflicts and war, greater volatility, decreased market liquidity, expropriation and nationalization risks, sanctions or other measures by the United States or other governments, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, liquidity risks and less stringent investor protection and disclosure standards of foreign markets. In certain markets where securities and other instruments are not traded “delivery versus payment,” a Fund may not receive timely payment for securities or other instruments it has delivered or receive delivery of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. Foreign market trading hours, clearance and settlement procedures, and holiday schedules may limit the Funds' ability to buy and sell securities.
Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The Funds each invest a substantial portion of their assets in emerging market countries. These risks are magnified in countries in emerging markets. Emerging market countries typically have less established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. Additionally, the Funds may have substantial difficulties exercising their legal rights or enforcing a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular in emerging market countries, which can increase the risks of loss.
The Funds are subject to infectious disease epidemics/pandemics risk. For example, the outbreak of COVID-19 negatively affected economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of any future pandemic or other global event to business and market conditions may have a significant negative impact on the performance of a Fund's investments, increase a Fund's volatility, negatively impact a Fund’s arbitrage and pricing mechanisms, exacerbate other pre-existing political, social and economic risks to the Funds and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic or other global event that affect the instruments in which the Funds invest, or the issuers of such instruments, in ways that could have a significant negative impact on a Fund’s investment performance. The ultimate impact of any pandemic or other global event and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
9. Subsequent Events
On November 16, 2023, the Board approved the liquidation of the Funds, which will occur on or about December 22, 2023. In connection with the liquidation, the Funds were delisted from the NASDAQ Stock Market LLC exchange effective December 18, 2023.
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of J.P. Morgan Exchange-Traded Fund Trust and Shareholders of JPMorgan Social Advancement ETF and JPMorgan Sustainable Consumption ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of JPMorgan Social Advancement ETF and JPMorgan Sustainable Consumption ETF (two of the funds constituting J.P. Morgan Exchange-Traded Fund Trust, hereafter collectively referred to as the “Funds”) as of October 31, 2023, the related statements of operations for the year ended October 31, 2023, the statements of changes in net assets for the year ended October 31, 2023 and the period September 7, 2022 (commencement of operations) through October 31, 2022, including the related notes, and the financial highlights for the year ended October 31, 2023, and for the period from September 7, 2022 (commencement of operations) through October 31, 2022 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, the results of each of their operations for the year then ended, the changes in each of their net assets for the year ended October 31, 2023 and the period September 7, 2022 (commencement of operations) through October 31, 2022 and each of the financial highlights for the year ended October 31, 2023, and for the period from September 7, 2022 (commencement of operations) through October 31, 2022 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 21, 2023
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
| J.P. Morgan Exchange-Traded Funds | |
The Funds' Statement of Additional Information includes additional information about the Funds' Trustees and is available, without charge, upon request by calling 1-844-457-6383 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth);
Positions With
the Funds (1) | Principal Occupation
During Past 5 Years | Number of
Funds in Fund
Complex Overseen
by Trustee (2) | Other Directorships Held
During the Past 5 Years |
| |
John F. Finn (1947); Chair
since 2020; Trustee since 1998. | Chairman, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present). |
Stephen P. Fisher (1959);
Trustee since 2018. | Retired; Chairman and Chief Executive Officer, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | | Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). |
Gary L. French (1951);
Trustee since 2014. | Real Estate Investor (2011-2020); Investment management industry Consultant and Expert Witness (2011-present); Senior Consultant for The Regulatory Fundamentals Group LLC (2011-2017). | | Independent Trustee, The China Fund, Inc. (2013-2019); Exchange Traded Concepts Trust II (2012-2014); Exchange Traded Concepts Trust I (2011-2014). |
Kathleen M. Gallagher (1958);
Trustee since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | | Non- Executive Director, Legal & General Investment Management (Holdings) (2018-present); Non-Executive Director, Legal & General Investment Management America (U.S. Holdings) (financial services and insurance) (2017-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). |
Robert J. Grassi (1957);
Trustee since 2014. | Sole Proprietor, Academy Hills Advisors LLC (2012-present); Pension Director, Corning Incorporated (2002-2012). | | |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Frankie D. Hughes (1952);
Trustee since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | | |
Raymond Kanner (1953);
Trustee since 2017. | Retired; Managing Director and Chief Investment Officer, IBM Retirement Funds (2007-2016). | | Advisory Board Member, Penso Advisors, LLC (2020-present); Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017- present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016- 2017); Advisory Board Member, BlueStar Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). |
Thomas P. Lemke (1954);
Trustee since 2014. | | | (1) Independent Trustee of Advisors’ Inner Circle III fund platform, consisting of the following: (i) the Advisors’ Inner Circle Fund III, (ii) the Gallery Trust, (iii) the Schroder Series Trust, (iv) the Delaware Wilshire Private Markets Fund (since 2020), (v) Chiron Capital Allocation Fund Ltd., and (vi) formerly the Winton Diversified Opportunities Fund (2014-2018); and (2) Independent Trustee of the Symmetry Panoramic Trust (since 2018). |
Lawrence R. Maffia (1950);
Trustee since 2014. | Retired; Director and President, ICI Mutual Insurance Company (2006-2013). | | Director, ICI Mutual Insurance Company (1999-2013). |
Mary E. Martinez (1960); Vice
Chair since 2021; Trustee since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (asset management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | | |
Marilyn McCoy (1948);
Trustee since 1999. | Retired; Vice President of Administration and Planning, Northwestern University (1985-2023). | | |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Dr. Robert A. Oden, Jr. (1946); Trustee
since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | | Trustee, The Coldwater Conservation Fund (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Trustee and Vice Chair, Trout Unlimited (2017-2021); Trustee, Dartmouth- Hitchcock Medical Center (2011-2020). |
Marian U. Pardo* (1946);
Trustee since 2013. | Managing Director and Founder, Virtual Capital Management LLC (investment consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | | Board Chair and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
Emily A. Youssouf (1951);
Trustee since 2014. | Adjunct Professor (2011-present) and Clinical Professor (2009-2011), NYU Schack Institute of Real Estate; Board Member and Member of the Audit Committee (2013–present), Chair of Finance Committee (2019-present), Member of Related Parties Committee (2013-2018) and Member of the Enterprise Risk Committee (2015-2018), PennyMac Financial Services, Inc.; Board Member (2005-2018), Chair of Capital Committee (2006-2016), Chair of Audit Committee (2005-2018), Member of Finance Committee (2005-2018) and Chair of IT Committee (2016-2018), NYC Health and Hospitals Corporation. | | Trustee, NYC School Construction Authority (2009-present); Board Member, NYS Job Development Authority (2008-present); Trustee and Chair of the Audit Committee of the Transit Center Foundation (2015-2019). |
| |
Robert F. Deutsch** (1957);
Trustee since 2014. | Retired; Head of ETF Business for JPMorgan Asset Management (2013-2017); Head of Global Liquidity Business for JPMorgan Asset Management (2003-2013). | | Treasurer and Director of the JUST Capital Foundation (2017-present). |
Nina O. Shenker** (1957);
Trustee since 2022. | Vice Chair (2017-2021), General Counsel and Managing Director (2008-2016), Associate General Counsel and Managing Director (2004-2008), J.P. Morgan Asset & Wealth Management. | | Director and Member of Legal and Human Resources Subcommittees, American Jewish Joint Distribution Committee (2018-present). |
|
| The year shown is the first year in which a Trustee became a member of any of the following: the JPMorgan Mutual Fund Board, the JPMorgan ETF Board, the heritage J.P. Morgan Funds or the heritage One Group Mutual Funds. Trustees serve an indefinite term, until resignation, retirement, removal or death. The Board's current retirement policy sets retirement at the end of the calendar year in which the Trustee attains the age of 75, provided that any Board member who was a member of the JPMorgan Mutual Fund Board prior to January 1, 2022 and was born prior to January 1, 1950 shall retire from the Board at the end of the calendar year in which the Trustee attains the age of 78. |
| A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes nine registered investment companies (170 J.P. Morgan Funds). |
| In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
| Designation as an “Interested Trustee” is based on prior employment by the Adviser or an affiliate of the Adviser or interests in a control person of the Adviser. |
| The contact address for each of the Trustees is 277 Park Avenue, New York, NY 10172. |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth),
Positions Held with
the Trust (Since) | Principal Occupations During Past 5 Years |
Brian S. Shlissel (1964),
President and Principal Executive
Officer (2021) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. since 2014. |
Timothy J. Clemens (1975),
Treasurer and Principal Financial
Officer (2020) | Managing Director, J.P. Morgan Investment Management Inc. Mr. Clemens has been with J.P. Morgan Investment Management Inc. since 2013. |
Gregory S. Samuels (1980),
Secretary (2022) (formerly Assistant
Secretary 2014-2022) | Managing Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Samuels has been with JPMorgan Chase & Co. since 2010. |
Stephen M. Ungerman (1953),
Chief Compliance Officer (2014) | Managing Director, JPMorgan Chase & Co. Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. |
Kiesha Astwood-Smith (1973),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Senior Director and Counsel, Equitable Financial Life Insurance Company (formerly, AXA Equitable Life Insurance Company) from September 2015 through June 2021. |
Matthew Beck (1988),
Assistant Secretary (2021)* | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since May 2021; Senior Legal Counsel, Ultimus Fund Solutions from May 2018 through May 2021; General Counsel, The Nottingham Company from April 2014 through May 2018. |
Elizabeth A. Davin (1964),
Assistant Secretary (2022)
(formerly Secretary 2018-2022)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Davin has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 2004. |
Jessica K. Ditullio (1962),
Assistant Secretary (2014)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Ditullio has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 1990. |
Anthony Geron (1971),
Assistant Secretary (2019) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since September 2018; Lead Director and Counsel, AXA Equitable Life Insurance Company from 2015 to 2018 and Senior Director and Counsel, AXA Equitable Life Insurance Company from 2014 to 2015. |
Carmine Lekstutis (1980),
Assistant Secretary (2014) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Lekstutis has been with JPMorgan Chase & Co. since 2011. |
Max Vogel (1990),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Associate, Proskauer Rose LLP (law firm) from March 2017 to June 2021. |
Zachary E. Vonnegut-Gabovitch
(1986),
Assistant Secretary (2017) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Vonnegut-Gabovitch has been with JPMorgan Chase & Co. since September 2016. |
Frederick J. Cavaliere (1978),
Assistant Treasurer (2015)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Cavaliere has been with JPMorgan Chase & Co. since May 2006. |
Michael M. D’Ambrosio (1969),
Assistant Treasurer (2014) | Managing Director, J.P. Morgan Investment Management Inc. Mr. D’Ambrosio has been with J.P. Morgan Investment Management Inc. since 2012. |
Aleksandr Fleytekh (1972),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Mr. Fleytekh has been with J.P. Morgan Investment Management Inc. since February 2012. |
Shannon Gaines (1977),
Assistant Treasurer (2019)* | Executive Director, J.P. Morgan Investment Management Inc. Mr. Gaines has been with J.P. Morgan Investment Management Inc. since January 2014. |
Jeffrey D. House (1972),
Assistant Treasurer (2023)* | Vice President, J.P. Morgan Investment Management Inc. Mr. House has been with J.P. Morgan Investment Management Inc. since July 2006. |
Michael Mannarino (1985),
Assistant Treasurer (2023) | Vice President, J.P. Morgan Investment Management Inc. Mr. Mannarino has been with J.P. Morgan Investment Management Inc. since 2014. |
| J.P. Morgan Exchange-Traded Funds | |
OFFICERS(Unaudited) (continued)
Nektarios E. Manolakakis (1972),
Assistant Treasurer (2020) | Executive Director, J.P. Morgan Investment Management Inc. since February 2021, formerly Vice President, J.P. Morgan Investment Management Inc. since 2014; Vice President, J.P. Morgan Corporate & Investment Bank 2010-2014. |
Todd McEwen (1981),
Assistant Treasurer (2020)* | Vice President, J.P. Morgan Investment Management Inc. Mr. McEwen has been with J.P. Morgan Investment Management Inc. since 2010. |
Joseph Parascondola (1963),
Assistant Treasurer (2023)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Parascondola has been with J.P. Morgan Investment Management Inc. since 2006. |
Gillian I. Sands (1969),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Ms. Sands has been with J.P. Morgan Investment Management Inc. since September 2012. |
|
The contact address for each of the officers, unless otherwise noted, is 277 Park Avenue, New York, NY 10172. |
| The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| The contact address for the officer is 575 Washington Boulevard, Jersey City, NJ 07310. |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on your purchase and sales of Fund shares and (2) ongoing costs, primarily management fees. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these ongoing costs with the ongoing costs of investing in other funds. The examples assume that you had a $1,000 investment at the beginning of the reporting period, May 1, 2023, and continued to hold your shares at the end of the reporting period, October 31, 2023.
Actual Expenses
For each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Fund under the heading titled “Expenses Paid During the
Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The examples also assume all dividends and distributions have been reinvested. The examples do not take into account brokerage commissions that you pay when purchasing or selling shares of a Fund.
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | | |
JPMorgan Social Advancement ETF | | | | |
| | | | |
| | | | |
JPMorgan Sustainable Consumption ETF | | | | |
| | | | |
| | | | |
|
| Expenses are equal to each Fund's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| J.P. Morgan Exchange-Traded Funds | |
LIQUIDITY RISK MANAGEMENT PROGRAM(Unaudited)
Each of the Funds covered in this report has adopted the J.P. Morgan Funds and J.P. Morgan Exchange-Traded Funds Amended and Restated Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Program seeks to assess, manage and review each Fund’s Liquidity Risk. “Liquidity Risk” is defined as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. Pursuant to an exemptive order (the “Exemptive Order”) from the Securities and Exchange Commission, the Program permits the Funds to use liquidity definitions and classification methodologies that differ from the requirements under the Liquidity Rule in some respects. Among other things, the Liquidity Rule requires that a written report be provided to the Board of Trustees (the “Board”) on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of any Highly Liquid Investment Minimum (“HLIM”), where applicable, and any material changes to the Program.
The Board has appointed J.P. Morgan Asset Management’s Liquidity Risk Forum to be the program administrator for the Program (the “Program Administrator”). In addition to regular reporting at each of its quarterly meetings, on February 7, 2023, the Board reviewed the Program Administrator’s annual written report (the “Report”) concerning the operation of the Program for the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, where applicable, the operation of a Fund’s HLIM. There were no material changes to the Program during the Program Reporting Period.
The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program has been adequately and effectively implemented with respect to each Fund. Such information and factors included, among other things: (1) the effectiveness of the Program with respect to the identification of each Fund that qualifies as an “In-Kind ETF” (as defined in the Liquidity Rule); (2) the liquidity risk framework used to assess, manage, and periodically review each Fund’s Liquidity Risk and the results of this assessment; (3) the methodology and inputs for classifying the investments of a Fund (other than an In-Kind ETF) into one of the required liquidity categories that reflect an estimate of the liquidity of those investments under current market conditions (and, for In-Kind ETFs, the methodology and inputs for determining whether any investments should be classified as “Illiquid Investments” (as defined or modified under the Program)); (4) whether a Fund (other than an In-Kind ETF) invested primarily in “Highly Liquid Investments” (as defined or modified under the Program), as well as whether an HLIM should be established for a Fund (other than an In-Kind ETF) and the procedures for monitoring any HLIM; (5) whether a Fund invested more than 15% of its assets in “Illiquid Investments” and the procedures for monitoring for this limit; and (6) specific liquidity events arising during the Program Reporting Period. The Report further summarized the conditions of the Exemptive Order and whether all applicable Funds were in compliance with the terms of the Exemptive Order.
Based on this review, the Report concluded that: (1) the Program continues to be reasonably designed to effectively assess and manage each Fund’s Liquidity Risk; and (2) the Program has been adequately and effectively implemented with respect to each Fund during the Program Reporting Period.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited)
The Board of Trustees (the “Board” or the “Trustees”) has established various standing committees composed of Trustees with diverse backgrounds, to which the Board has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board and its investment committees (Money Market and Alternative Products Committee, Equity Committee, and Fixed Income Committee) met regularly throughout the year and, at each meeting, considered factors that are relevant to their annual consideration of the continuation of the management agreements. The Board also met for the specific purpose of considering management agreement annual renewals. The Board held meetings June 20-21, 2023 and August 8-10, 2023, at which the Trustees considered the continuation of the management agreements for each Fund whose annual report is contained herein (each a “Management Agreement” and collectively, the “Management Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered each investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not parties to a Management Agreement or “interested persons” (as defined in the Investment Company Act of 1940) of any party to a Management Agreement or any of their affiliates, approved the continuation of each Management Agreement on August 10, 2023.
As part of their review of the Management Agreements, the Trustees considered and reviewed performance and other information about the Funds received from J.P. Morgan Investment Management Inc. (the “Adviser”). This information includes the Funds’ performance as compared to the performance of their peers and benchmarks, and analyses by the Adviser of the Funds’ performance. In addition, at each of their regular meetings throughout the year, the Trustees considered reports on the performance of certain J.P. Morgan Funds provided by an independent investment consulting firm (the “independent consultant”). In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including expense information compiled by Broadridge, using data from Lipper Inc. and/or Morningstar Inc., independent providers of investment company data (together, “Broadridge”). Broadridge did not include performance information for the Funds because each Fund had less than one year of performance. The Trustees’ independent consultant also provided additional quantitative and statistical analyses of certain Funds, including risk and performance return assessments as compared to the Funds’ objectives, benchmarks, and peers. Before voting on the Management Agreements, the Trustees reviewed the Management Agreements with representatives of the Adviser, counsel
to the Funds, and independent legal counsel to the Trustees, and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the Management Agreements. The Trustees also discussed the Management Agreements with independent legal counsel in executive sessions at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Management Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Funds throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighting the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from each Fund under the applicable Management Agreement was fair and reasonable under the circumstances, and determined that the continuance of each Management Agreement was in the best interests of each Fund and its shareholders.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of services provided to each Fund under the applicable Management Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel, including personnel changes, if any;
• The qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund, including personnel changes, if any;
• The investment strategy for each Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy for each Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
• The administration services provided by the Adviser in its role as Administrator;
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited) (continued)
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Funds and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Funds;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates from providing services to each Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser and reviewed with the Board. The Trustees also recognized that it is difficult to make direct comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, and taking into consideration the factors noted above, the Trustees concluded that the profitability to the Adviser under each Management Agreement was not unreasonable in light of the services and benefits provided to each Fund.
The Trustees also considered the fees earned by JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, for custody, fund accounting and other related services for each Fund, and the profitability of the arrangements to JPMCB.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees considered that the J.P. Morgan Funds' operating accounts are held at JPMCB, which, as a result, will receive float benefits for certain J.P. Morgan Funds, as applicable. The Trustees also noted that the Adviser supports a diverse set of products and services, which benefits the Adviser by allowing it to leverage its infrastructure to serve additional clients, including benefits that may be received by the Adviser and its affiliates in connection with the Fund’s potential investments in other funds advised by the Adviser. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser, as well as the Adviser’s use of affiliates to provide other services and the benefits to such affiliates of doing so. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Funds.
Economies of Scale
The Trustees considered the extent to which each Fund may benefit from potential economies of scale. The Trustees noted that each Fund has a “unitary” management fee which does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses would be limited even when a Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under the Management Agreement in the future. The Trustees also concluded that all Funds benefited from the Adviser’s reinvestment in its operations to serve the Funds and their shareholders. The Trustees noted that the Adviser’s reinvestment ensures sufficient resources in terms of personnel and infrastructure to support the Funds. After considering the factors identified above, the Trustees concluded that the Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of management services and fee rates offered to other clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for investment management styles substantially similar to that of each Fund. The Trustees considered the complexity of investment management for registered investment companies relative to the Adviser’s other clients and noted differences, as applicable, in the fee structure and the regulatory, legal and other risks and
| J.P. Morgan Exchange-Traded Funds | |
responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered investment company involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the applicable registered investment company, typically bears the sub-advisory fee and that many responsibilities related to the advisory function are typically retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees receive and consider information about the Funds’ performance throughout the year. In addition, the Trustees considered each Fund’s investment strategy and processes, portfolio management teams and competitive positioning against peer funds.
The Trustees considered the brief operating history of the Funds and discussed each Fund’s performance. The Trustees also discussed the performance and the investment strategy of each Fund with the Adviser. Based on these discussions and various other factors, the Trustees concluded each Fund’s performance was satisfactory.
Management Fees and Expense Ratios
The Trustees considered the contractual management fee rate paid by each Fund to the Adviser and compared the rate to the information prepared by Broadridge concerning management fee rates paid by other funds in the same Morningstar category as each Fund. This review included ranking of each Fund within an expense universe comprised of funds with the same Morningstar investment classification and objective (the “Universe”), as well as a subset of funds within the Universe (the “Peer Group”). The Trustees reviewed a description of Broadridge’s methodology for selecting funds in the Peer Group
and Universe, as applicable, and noted that the Peer Group and/or Universe quintile rankings were not calculated if the number of funds in the Peer Group and/or Universe did not meet a predetermined minimum. The Trustees also reviewed information about other expenses and the total expense ratio for each Fund. The Trustees compared the management fee for each Fund to fees charged to mutual funds and/or institutional accounts with similar investment objectives or in similar asset classes managed by the Adviser. The Trustees recognized that it can be difficult to make comparisons of management fees because there are variations in the services that are included in the fees paid by other accounts. The Trustees considered how the Funds are positioned against peer funds, as identified by management and/or Broadridge and noted that each Fund’s management fee was appropriate as compared to identified peer funds. The Trustees’ determinations as a result of the review of each Fund’s management fees and expense ratios are summarized below:
The Trustees noted that the JPMorgan Social Advancement ETF’s net management fee was in the first and second quintiles of the Peer Group and Universe, respectively, and that the actual total expenses were in the first quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
The Trustees noted that the JPMorgan Sustainable Consumption ETF’s net management fee was in the first and second quintiles of the Peer Group and Universe, respectively, and that the actual total expenses were in the first quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
| J.P. Morgan Exchange-Traded Funds | |
TAX LETTER(Unaudited)
(Dollar values in thousands)
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2023. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2023. The information necessary to complete your income tax returns for the calendar year ending December 31, 2023 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended October 31, 2023:
| Dividends
Received
Deduction |
JPMorgan Social Advancement ETF | |
JPMorgan Sustainable Consumption ETF | |
Qualified Dividend Income (QDI)
Each Fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions and foreign tax credits (if applicable) treated as qualified dividends for the fiscal year ended October 31, 2023:
| |
JPMorgan Social Advancement ETF | |
JPMorgan Sustainable Consumption ETF | |
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the Funds.
Contact J.P. Morgan Exchange-Traded Funds at 1-844-457-6383 (844-4JPM ETF) for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The prospectus contains this and other information about the fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by visiting www.sipc.org or by calling SIPC at 202-371-8300.
Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC as an exhibit to its report on Form N-PORT. The Funds' Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. Each Fund's quarterly holdings can be found by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Effective January 24, 2023, the SEC adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
A description of each Fund's policies and procedures with respect to the disclosure of each Fund's holdings is available in the prospectus and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-844-457-6383 and on the Funds' website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Adviser. A copy of the Funds' voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds' website at www.jpmorganfunds.com no later than August 31 of each year. The Funds' proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
© JPMorgan Chase & Co., 2023. All rights reserved. October 2023.
AN-ESG-ETF-1023
Annual Report
J.P. Morgan Exchange-Traded Funds
October 31, 2023
| | |
JPMorgan Climate Change Solutions ETF | | |
JPMorgan Sustainable Infrastructure ETF | | |
CONTENTS
Investments in a Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when a Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of a Fund or the securities markets.
Prospective investors should refer to the Funds’ prospectuses for a discussion of the Funds’ investment objectives, strategies and risks. Call J.P. Morgan Exchange-Traded Funds at (844) 457-6383 for a prospectus containing more complete information about a Fund, including management fees and other expenses. Please read it carefully before investing.
Shares are bought and sold throughout the day on an exchange at market price (not at net asset value) through a brokerage account, and are not individually subscribed and redeemed from a Fund. Shares may only be subscribed and redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units. Brokerage commissions will reduce returns.
President's LetterDecember 14, 2023 (Unaudited)
Dear Shareholder,
While the U.S. economy generally performed well this year, global economic growth has been uneven in the face of elevated interest rates and heightened geopolitical tensions. Equity markets largely outperformed fixed income markets for the twelve months ended October 31, 2023, though rising yields lifted investor demand for certain types of bonds.
|
"The strong performance of financial markets in 2023 created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.” — Brian S. Shlissel
|
Inflationary pressures have receded sufficiently so far that the U.S. Federal Reserve declined to raise interest rates since September 2023 and signaled it may reduce rates three times in 2024. Both the European Central Bank and the Bank of England also declined to raise interest rates in the third quarter of 2023. Financial markets largely responded positively to the central banks’ policy stances, though the view that interest rates could remain “higher for longer” appeared to temper investor optimism.
Overall, corporate earnings and revenues within developed markets generally continued to grow through the first three quarters of 2023, though certain surveys indicated many businesses anticipate demand to slow next year. Emerging markets experienced a wider dispersion in economic performance and corporate results, partly due to slower economic growth in China, post-pandemic changes to global supply chains and elevated debt servicing costs.
While some assert that the risk of economic recession has receded in 2023, the risk remains. China’s struggling property sector could further undermine economic growth and spill over to certain commodity exporting nations. Additionally, there is no clear timing with regard to the resolution of the war in Ukraine, which continues to impact global energy and grain supplies. The Israel-Hamas conflict has the potential to both widen militarily and to impact international trade and prices for energy and food. However, financial markets have generally continued to function without major disruptions during the period.
The strong performance of financial markets has created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.
Our suite of investment solutions seeks to provide investors with the ability to build durable portfolios that meet their financial goals, regardless of macroeconomic and geopolitical uncertainties.
Sincerely,
Brian S. Shlissel
President, J.P. Morgan Exchange-Traded Funds
J.P. Morgan Asset Management
1-844-4JPM-ETF or jpmorgan.com/etfs for more information
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds
MARKET OVERVIEWTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
Equity markets continued to outperform bond markets during the period, generating positive returns largely due to gains made during the first half of 2023. Following a surge in U.S. equity prices, investors largely sought lower equity valuations in international markets in the second half of the period.
Overall, equities in international developed markets outperformed both emerging market and U.S. equities. Growth stocks and large capitalization stocks largely outperformed value stocks and mid cap and small cap stocks. Within fixed income markets, emerging markets debt and lower-rated bonds in developed markets generally outperformed U.S. Treasury bonds.
While the U.S. Federal Reserve, the European Central Bank and The Bank of England continued to raise interest rates at regular intervals through the first half of 2023, declining inflationary pressures allowed all three central banks to withhold further increases at the end of the reporting period.
Corporate earnings were generally better-than-expected for most of the period but results for the third quarter of 2023 showed some slowing in earnings and revenue growth. Tight labor markets in the U.S. eased somewhat in the final months of the period and the jobless rate rose to 3.8% in October 2023, which raised investor expectations that inflation would continue to slow.
Global energy prices largely fell during the period amid slowing demand from China and leading industrialized nations. Crude oil prices spiked briefly in September 2023 when Saudi Arabia and Russia extended production cuts and again in early October at the outbreak of the Israel-Hamas conflict. However, global petroleum prices receded by the end of the period as economic data, including U.S. gasoline consumption, continued to indicate slowing global demand.
Notably, financial sector stocks were roiled by the collapse of Silicon Valley Bank in late March 2023, followed closely by the failures of Signature Bank and Credit Suisse. In each case, government regulators moved to prevent the erosion of consumer and investor confidence in the banking system.
For the twelve months ended October 31, 2023, the MSCI EAFE Index returned 15.01%, the MSCI Emerging Markets Index returned 11.26% and the S&P 500 Index returned 10.14%.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Climate Change Solutions ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE ***
The JPMorgan Climate Change Solutions ETF (the “Fund”) seeks to achieve long-term capital appreciation by investing in companies that the adviser believes are developing solutions to address climate change.
INVESTMENT APPROACH
The Fund may invest primarily in common stocks that the adviser believes are currently, or in the process of, providing solutions to address climate change, or implementing business practices in response to climate change. The Fund uses a "thematic" investment approach that seeks to identify and invest in companies that are relevant to the investment theme of climate change solutions and selects companies within key sub-themes, including sustainable transportation, sustainable construction, sustainable food and water, renewable energy and electrification, recycling and re-use.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund generated a negative absolute return and underperformed the MSCI ACWI Index (the “Index”).
The Fund’s security selection in the information technology and industrial sectors was a leading detractor from absolute performance, while the Fund’s security selection in the industrials and materials sectors was a leading contributor to absolute performance.
Leading individual detractors from Fund performance included Samsung SDI Co., SolardEdge Technologies Inc. and Enphase Energy Inc. Shares of Samsung SDI, a South Korean manufacturer of flat-screen televisions and electric vehicle batteries, fell amid weaker sales of electric vehicles during the second half of the period. Shares of SolarEdge Technologies, an Israeli semiconductor materials and equipment manufacturer, fell after the company reported lower-than-expected revenue for the third quarter of 2023 and lowered its forecast for the
fourth quarter. Shares of Enphase Energy, a manufacturer of semiconductor materials and equipment for the solar energy industry, fell after the company reported lower-than-expected revenue for the third quarter of 2023 and lowered its forecast for the fourth quarter.
Leading individual contributors to Fund performance included Schneider Electric SE, Infineon Technologies AG and Carrier Global Corp. Schneider Electric, a French electrical components and equipment manufacturer, rose after the company reported consecutive quarters of better-than-expected earnings and revenue during the first half of the period. Shares of Infineon Technologies, a German semiconductor manufacturer, rose after the company raised its earnings and revenue forecast during the period. Shares of Carrier Global, a U.S. building products manufacturer, rose after the company reported better-than-expected earnings for the third quarter of 2023 and raised its earnings forecast for the full year 2023.
Relative to the Index, the Fund’s security selection in the information technology and industrials sectors was a leading detractor from performance, while the Fund’s underweight positions in the health care sector and the financials sector, where it had no holdings, was a leading contributor to relative performance.
HOW WAS THE FUND POSITIONED?
As a result of the adviser’s thematic investment approach, the Fund’s largest allocations during the period were to the industrials and information technology sectors and the smallest allocations were to the health care and consumer discretionary sectors. The Fund had no holdings in the communication services, energy, consumer staples and financials sectors.
The Fund’s largest thematic allocations were to the renewable energy and electrification and the sustainable construction sub-themes, while its smallest allocations were to the recycling and re-use and the sustainable transportation sub-themes.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Climate Change Solutions ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $34.21 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $34.26.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| | |
| Dassault Systemes SE (France) | |
| | |
| | |
| | |
| | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan Climate Change Solutions ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (12/13/21 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on December 13, 2021.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Climate Change Solutions ETF and the MSCI ACWI Index (net total return) from December 13, 2021 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI ACWI Index (net total return) is a free float-adjusted market capitalization-weighted index that is designed to
measure the performance of large- and mid-cap stocks in developed and emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and differences in accounting and taxation policies outside the United States can raise or lower returns. Also, some overseas markets may not be as politically and economically stable as the United States and other nations.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Infrastructure ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI ACWI Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE ***
The JPMorgan Sustainable Infrastructure ETF (the “Fund”) seeks to achieve long-term capital appreciation by investing in companies that the adviser believes are well-positioned to develop the infrastructure required to facilitate a sustainable and inclusive economy.
INVESTMENT APPROACH
The Fund may invest primarily in common stocks, real estate investment trusts and depositary receipts of companies that the adviser believes are facilitating access to essential goods and services, improved connectivity, social infrastructure, and environmental resilience, or are in the process of developing products or services to facilitate such access. The Fund uses a "thematic" investment approach that seeks to identify and invest in companies that are relevant to the investment theme of sustainable infrastructure and selects companies within key sub-themes, such as electricity infrastructure, renewables infrastructure, transport infrastructure, water infrastructure, digital infrastructure, sustainable logistics, medical infrastructure, and social housing and education infrastructure.
HOW DID THE FUND PERFORM?
For the twelve months ended October 31, 2023, the Fund generated a negative absolute return and underperformed the MSCI ACWI Index (the “Index”).
The Fund’s security selection in the information technology and industrials sectors were leading detractors from absolute performance, while the Fund’s security selection in the utilities and real estate sectors was a leading contributor to absolute performance.
Leading individual detractors from Fund performance included Alexandria Real Estate Equities Inc., SolarEdge Technologies Inc. and Alfen NV. Shares of Alexandria Real Estate Equities, a U.S. office real estate investment trust, fell amid investor concerns about commercial property vacancies in the U.S. and after the company reported lower-than-expected
revenue for the third quarter of 2023. Shares of SolarEdge Technologies, an Israeli semiconductor materials and equipment manufacturer, fell after the company reported lower-than-expected revenue for the third quarter of 2023 and lowered its forecast for the fourth quarter. Shares of Alfen, a Dutch electrical equipment manufacturer, fell after the company lowered its revenue forecast amid slower demand for electric vehicle charging stations.
Leading individual contributors to Fund performance included Enel SpA, Digital Realty Trust Inc. and Vonovia SE. Shares of Enel, an Italian electric utility, rose after the company reported earnings and revenue growth for the first quarter of 2023 and reaffirmed its strategic plans for 2023-2025. Shares of Digital Realty Trust, a U.S. data center real estate investment trust, rose amid increased demand in the information technology sector during the period and after the company reported better-than-expected revenue for the third quarter of 2023. Shares of Vonovia, a German residential real estate company, rose amid investor expectations for growth in Germany’s economy.
Relative to the Index, the Fund’s security selection in the information technology and industrials sectors was a leading detractor from performance, while the Fund’s underweight positions in the health care sector and in the consumer staples sector, where it had no holdings, was a leading contributor to relative performance.
HOW WAS THE FUND POSITIONED?
As a result of the adviser’s thematic investment process, the Fund’s largest allocations during the period were to the utilities and real estate sectors and the smallest allocations were to the consumer discretionary and financials sectors. The Fund has no allocations to the materials, energy and consumer staples sectors.
The Fund’s largest thematic allocations were to environmental resilience themes, including electricity infrastructure, water
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $42.39 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NASDAQ Stock Market® LLC As of October 31, 2023, the closing price was $42.45.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
infrastructure and renewables infrastructure. The Fund’s smallest thematic allocations were to social housing and education infrastructure and medical infrastructure.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| | |
| | |
| | |
| Canadian National Railway Co. (Canada) | |
| Digital Realty Trust, Inc. | |
| Sabra Health Care REIT, Inc. | |
| NARI Technology Co. Ltd., Class A (China) | |
| | |
| LondonMetric Property plc (United Kingdom) | |
| Assura plc (United Kingdom) | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Infrastructure ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | |
JPMorgan Sustainable Infrastructure ETF | | | |
| | | |
| | | |
LIFE OF FUND PERFORMANCE (9/7/22 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
Fund commenced operations on September 7, 2022.
The graph illustrates comparative performance for $10,000 invested in shares of the JPMorgan Sustainable Infrastructure ETF and the MSCI ACWI Index (net total return) from September 7, 2022 to October 31, 2023. The performance of the Fund reflects the deduction of Fund expenses and assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI ACWI Index (net total return) does not reflect the deduction of expenses associated with an exchange-traded fund and has been adjusted to reflect
reinvestment of all dividends and capital gain distributions of the securities included in the Index, if applicable. The MSCI ACWI Index (net total return) is a free float-adjusted market capitalization-weighted index that is designed to measure the performance of large- and mid-cap stocks in developed and emerging markets. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Performance shown in this section does not reflect the deduction of taxes that a shareholder may pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on net asset values calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the net asset values in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Climate Change Solutions ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
West Fraser Timber Co. Ltd. | | |
|
Contemporary Amperex Technology Co. Ltd., Class A | | |
NARI Technology Co. Ltd., Class A | | |
| | |
|
| | |
Vestas Wind Systems A/S * | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
|
| | |
| | |
Kurita Water Industries Ltd. | | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
|
|
LG Energy Solution Ltd. * | | |
| | |
| | |
|
| | |
| | |
Solaria Energia y Medio Ambiente SA * | | |
| | |
|
| | |
|
| | |
| | |
| | |
| | |
|
| | |
Spirax-Sarco Engineering plc | | |
| | |
| | |
|
| | |
Array Technologies, Inc. * | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Johnson Controls International plc | | |
| | |
| | |
| | |
| | |
| | |
| | |
Shoals Technologies Group, Inc., Class A * | | |
SolarEdge Technologies, Inc. * | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Climate Change Solutions ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $20,903,524) | | |
Short-Term Investments — 1.0% |
Investment Companies — 1.0% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c)(Cost $195,563) | | |
Total Investments — 98.5%
(Cost $21,099,087) | | |
Other Assets Less Liabilities — 1.5% | | |
| | |
Percentages indicated are based on net assets. |
| |
| |
| Real Estate Investment Trust |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
Electronic Equipment, Instruments & Components | |
| |
| |
Construction & Engineering | |
Semiconductors & Semiconductor Equipment | |
Commercial Services & Supplies | |
| |
| |
Independent Power and Renewable Electricity Producers | |
| |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Infrastructure ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
|
| | |
|
| | |
Warehouses De Pauw CVA, REIT | | |
| | |
|
Transmissora Alianca de Energia Eletrica S/A | | |
|
Canadian National Railway Co. | | |
|
China Longyuan Power Group Corp. Ltd., Class H | | |
Contemporary Amperex Technology Co. Ltd., Class A | | |
NARI Technology Co. Ltd., Class A | | |
| | |
|
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
|
| | |
Infrastrutture Wireless Italiane SpA (a) | | |
Terna - Rete Elettrica Nazionale | | |
| | |
|
Kurita Water Industries Ltd. | | |
|
EDP - Energias de Portugal SA | | |
| | |
|
|
| | |
|
| | |
|
| | |
Corp. ACCIONA Energias Renovables SA | | |
| | |
| | |
| | |
Solaria Energia y Medio Ambiente SA * | | |
| | |
|
| | |
| | |
LondonMetric Property plc, REIT | | |
| | |
| | |
| | |
UNITE Group plc (The), REIT | | |
United Utilities Group plc | | |
| | |
|
Alexandria Real Estate Equities, Inc., REIT | | |
American Tower Corp., REIT | | |
| | |
Digital Realty Trust, Inc., REIT | | |
| | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc., REIT | | |
| | |
| | |
| | |
| | |
| | |
Physicians Realty Trust, REIT | | |
| | |
Public Service Enterprise Group, Inc. | | |
Sabra Health Care REIT, Inc., REIT | | |
SBA Communications Corp., REIT | | |
| | |
| | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan Sustainable Infrastructure ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
United States — continued |
| | |
| | |
| | |
Total Common Stocks
(Cost $23,059,517) | | |
Short-Term Investments — 2.4% |
Investment Companies — 2.4% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (b) (c)(Cost $522,094) | | |
Total Investments — 99.8%
(Cost $23,581,611) | | |
Other Assets Less Liabilities — 0.2% | | |
| | |
Percentages indicated are based on net assets. |
| |
| Certificaten Van Aandelen (Dutch Certificate) |
| Real Estate Investment Trust |
| Non-income producing security. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
| PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
Independent Power and Renewable Electricity Producers | |
| |
Real Estate Management & Development | |
| |
Diversified Telecommunication Services | |
| |
| |
Transportation Infrastructure | |
| |
Health Care Providers & Services | |
Electronic Equipment, Instruments & Components | |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF ASSETS AND LIABILITIESAS OF October 31, 2023
| JPMorgan
Climate Change
Solutions ETF | JPMorgan Sustainable
Infrastructure ETF |
| | |
Investments in non-affiliates, at value | | |
Investments in affiliates, at value | | |
| | |
Foreign currency, at value | | |
| | |
Investment securities sold | | |
Dividends from non-affiliates | | |
Dividends from affiliates | | |
| | |
| | |
| | |
| | |
Investment securities purchased | | |
| | |
Management fees (See Note 3.A.) | | |
| | |
| | |
| | |
| | |
Total distributable earnings (loss) | | |
| | |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | | |
Net asset value, per share | | |
Cost of investments in non-affiliates | | |
Cost of investments in affiliates | | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF OPERATIONSFOR THE YEAR ENDED October 31, 2023
| JPMorgan
Climate Change
Solutions ETF | JPMorgan Sustainable
Infrastructure ETF |
| | |
Interest income from non-affiliates | | |
Interest income from affiliates | | |
Dividend income from non-affiliates | | |
Dividend income from affiliates | | |
Non-cash dividend income from non-affiliates | | |
Income from securities lending (net) (See Note 2.C.) | | |
Foreign taxes withheld (net) | | |
| | |
| | |
Management fees (See Note 3.A.) | | |
Interest expense to affiliates | | |
| | |
Net investment income (loss) | | |
REALIZED/UNREALIZED GAINS (LOSSES): | | |
Net realized gain (loss) on transactions from: | | |
Investments in non-affiliates | | |
Investments in affiliates | | |
Foreign currency transactions | | |
| | |
Change in net unrealized appreciation/depreciation on: | | |
Investments in non-affiliates | | |
Investments in affiliates | | |
Foreign currency translations | | |
Change in net unrealized appreciation/depreciation | | |
Net realized/unrealized gains (losses) | | |
Change in net assets resulting from operations | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED
| JPMorgan
Climate Change Solutions ETF | JPMorgan Sustainable
Infrastructure ETF |
| Year Ended
October 31, 2023 | Period Ended
October 31, 2022 (a) | Year Ended
October 31, 2023 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | | | |
Net investment income (loss) | | | | |
| | | | |
Change in net unrealized appreciation/depreciation | | | | |
Change in net assets resulting from operations | | | | |
DISTRIBUTIONS TO SHAREHOLDERS: | | | | |
Total distributions to shareholders | | | | |
| | | | |
Change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Proceeds from shares issued | | | | |
Total change in net assets resulting from capital transactions | | | | |
| | | | |
| | | | |
Net increase in shares from transactions | | | | |
(a)
Commencement of operations was December 13, 2021.
(b)
Commencement of operations was September 7, 2022.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED
| Per share operating performance |
| | | |
| Net asset
value,
beginning
of period | Net investment
income
(loss) (b) | Net realized
and unrealized
gains
(losses)
on investments | Total from
investment
operations | |
JPMorgan Climate Change Solutions ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
December 13, 2021 (f) through October 31, 2022 | | | | | |
JPMorgan Sustainable Infrastructure ETF | | | | | |
Year Ended October 31, 2023 | | | | | |
September 7, 2022 (f) through October 31, 2022 | | | | | |
|
| Annualized for periods less than one year, unless otherwise noted. |
| Calculated based upon average shares outstanding. |
| Not annualized for periods less than one year. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The closing price was used to calculate the market price return. |
| Commencement of operations. |
| Since the shares of the Fund did not trade in the secondary market until the day after the Fund’s inception, for the period from the inception to the first day of secondary market trading, the net asset value is used as a proxy for the secondary market trading price to calculate the market returns. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets (a) | |
Net asset
value,
end of
period | | | Market
price
total
return (c)(e) | | | Net
investment
income
(loss) | Portfolio
turnover
rate (c) |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023
1. Organization
J.P. Morgan Exchange-Traded Fund Trust (the “Trust”) was formed on February 25, 2010, and is governed by a Declaration of Trust as amended and restated February 19, 2014, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company.
The following are 2 separate funds of the Trust (each, a "Fund" and collectively, the "Funds") covered by this report:
| Diversification Classification |
JPMorgan Climate Change Solutions ETF | |
JPMorgan Sustainable Infrastructure ETF | |
The investment objective of JPMorgan Climate Change Solutions ETF (“Climate Change Solutions ETF”) is to seek to achieve long-term capital appreciation by investing in companies that the adviser believes are developing solutions to address climate change.
The investment objective of JPMorgan Sustainable Infrastructure ETF ("Sustainable Infrastructure ETF") is to seek to achieve long-term capital appreciation by investing in companies that the adviser believes are well-positioned to develop the infrastructure required to facilitate a sustainable and inclusive economy.
J.P. Morgan Investment Management Inc. (“JPMIM”), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), acts as adviser (the “Adviser”) and administrator (the “Administrator”) to the Funds.
Shares of each Fund are listed and traded at market price on an exchange as follows:
| |
Climate Change Solutions ETF | |
Sustainable Infrastructure ETF | |
Market prices for the Funds’ shares may be different from their net asset value (“NAV”).
The Funds issue and redeem their shares on a continuous basis, through JPMorgan Distribution Services, Inc. (the “Distributor” or “JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, at NAV in large blocks of shares, referred to as “Creation Units”. Creation Units are issued and redeemed in exchange for a basket of securities and/or cash. A cash amount may be substituted if a Fund has sizeable exposure to market or sponsor restricted securities. Shares are generally traded in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Only individuals or institutions that have entered into an authorized participant agreement with the Distributor may do business directly with the Funds (each, an “Authorized Participant”).
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The Funds are investment companies and, accordingly, follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
A. Valuation of Investments — Investments are valued in accordance with GAAP and the Funds' valuation policies set forth by, and under the supervision and responsibility of, the Board of Trustees of the Trust (the "Board"), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at their market value and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
Under Section 2(a)(41) of the 1940 Act, the Board is required to determine fair value for securities that do not have readily available market quotations. Under SEC Rule 2a-5 (Good Faith Determinations of Fair Value), the Board may designate the performance of these fair valuation determinations to a valuation designee. The Board has designated the Adviser as the “Valuation Designee” to perform fair valuation determinations for the Funds on behalf of the Board subject to appropriate oversight by the Board. The Adviser, as Valuation Designee, leverages the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to help oversee and carry out the policies for the valuation of investments held in the Funds. The Adviser, as Valuation Designee, remains responsible for the valuation determinations.
| J.P. Morgan Exchange-Traded Funds | |
This oversight by the AVC includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight including, but not limited to, consideration of macro or security specific events, market events, and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and, at least on a quarterly basis, with the AVC and the Board.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the NAVs of the Funds are calculated on a valuation date. Certain foreign equity instruments are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post closing, but prior to the time the NAVs are calculated.
Investments in open-end investment companies (“Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer-related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Funds' investments are summarized into the three broad levels listed below.
•
Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments.
•
Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.
•
Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Funds' assumptions in determining the fair value of investments).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The following tables represent each valuation input as presented on the Schedules of Portfolio Investments ("SOIs"):
Climate Change Solutions ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
Sustainable Infrastructure ETF | | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Total Investments in Securities | | | | |
B. Restricted Securities — Certain securities held by the Funds may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the NAVs of the Funds.
As of October 31, 2023, the Funds had no investments in restricted securities other than securities sold to the Funds under Rule 144A and/or Regulation S under the Securities Act.
C. Securities Lending — The Funds are authorized to engage in securities lending in order to generate additional income. The Funds are able to lend to approved borrowers. Citibank N.A. (“Citibank”) serves as lending agent for the Funds, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in the Class IM Shares of the JPMorgan U.S. Government Money Market Fund and the Agency SL Class Shares of the JPMorgan Securities Lending Money Market Fund. The Funds retain the interest earned on cash collateral investments but are required to pay the borrower a rebate for the use of the cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Funds). Upon termination of a loan, the Funds are required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Funds or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statements of Operations as Income from securities lending (net). The Funds also receive payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statements of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from the borrower so as to maintain a collateralization level of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities), subject to certain de minimis amounts.
The value of securities out on loan is recorded as an asset on the Statements of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statements of Assets and Liabilities and details of collateral investments are disclosed on the SOIs.
| J.P. Morgan Exchange-Traded Funds | |
The Funds bear the risk of loss associated with the collateral investments and are not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, the Funds may incur losses that exceed the amount they earned on lending the security. Upon termination of a loan, the Funds may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the collateral investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Funds from losses resulting from a borrower’s failure to return a loaned security.
JPMIM voluntarily waived management fees charged to the Funds to reduce the impact of the cash collateral investment in the JPMorgan U.S. Government Money Market Fund from 0.13% to 0.06%. For the year ended October 31, 2023, JPMIM waived fees associated with the Funds' investment in the JPMorgan U.S. Government Money Market Fund as follows:
Climate Change Solutions ETF | |
The above waiver is included in the determination of earnings on cash collateral investment and in the calculation of Citibank’s compensation and is included on the Statements of Operations as Income from securities lending (net).
Sustainable Infrastructure ETF did not lend out any securities during the year ended October 31, 2023.
D. Investment Transactions with Affiliates — The Funds invested in Underlying Funds advised by the Adviser. An issuer which is under common control with a Fund may be considered an affiliate. For the purposes of the financial statements, the Funds assume the issuers listed in the tables below to be affiliated issuers. The Underlying Funds’ distributions may be reinvested into such Underlying Funds. Reinvestment amounts are included in the purchases at cost amounts in the tables below.
Climate Change Solutions ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statements of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
Sustainable Infrastructure ETF |
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
E. Foreign Currency Translation — The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Funds do not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments in non-affiliates on the Statements of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on each Fund's books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statements of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at year end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statements of Operations.
F. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis.
Dividend income, net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Funds record distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Funds adjust the estimated amounts of the components of distributions (and consequently their net investment income) as necessary, once the issuers provide information about the actual composition of the distributions.
G. Federal Income Taxes — Each Fund is treated as a separate taxable entity for Federal income tax purposes. Each Fund's policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Funds' tax positions for all open tax years and has determined that as of October 31, 2023, no liability for Federal income tax is required in the Funds' financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. Each Fund's Federal tax returns for the prior three fiscal years, or since inception if shorter, remain subject to examination by the Internal Revenue Service.
H. Foreign Taxes —The Funds may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Funds will accrue such taxes and recoveries as applicable, based upon their current interpretation of tax rules and regulations that exist in the markets in which they invest. When a capital gains tax is determined to apply, the Funds record an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
I. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually. Net realized capital gains, if any, are distributed by each Fund at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax basis treatment.
The following amounts were reclassified within the capital accounts:
| | Accumulated
undistributed
(distributions in
excess of)
net investment
income | Accumulated
net realized
gains (losses) |
Climate Change Solutions ETF | | | |
Sustainable Infrastructure ETF | | | |
The reclassifications for the Funds relate primarily to foreign currency gains or losses and redesignation of dividends.
| J.P. Morgan Exchange-Traded Funds | |
3. Fees and Other Transactions with Affiliates
A. Management Fee— JPMIM manages the investments of each Fund pursuant to a Management Agreement. For such services, JPMIM is paid a fee which is accrued daily and paid no more frequently than monthly based on each Fund's respective average daily net assets at the following rate:
| |
Climate Change Solutions ETF | |
Sustainable Infrastructure ETF | |
Under each Management Agreement, JPMIM is responsible for substantially all expenses of each Fund, (including expenses of the Trust relating to each Fund), except for the management fees, payments under the Funds' 12b-1 plan (if any), interest expenses, dividend and interest expenses related to short sales, taxes, acquired fund fees and expenses (other than fees for funds advised by the Adviser and/or its affiliates), costs of holding shareholder meetings, and litigation and potential litigation and other extraordinary expenses not incurred in the ordinary course of each Fund’s business. Additionally, each Fund is responsible for its non-operating expenses, including brokerage commissions and fees and expenses associated with each Fund’s securities lending program, if applicable. For the avoidance of doubt, the Adviser’s payment of such expenses may be accomplished through a Fund’s payment of such expenses and a corresponding reduction in the fee payable to the Adviser, provided, however, that if the amount of expenses paid by a Fund exceeds the fee payable to the Adviser, the Adviser will reimburse that Fund for such amount.
B. Administration Fee — JPMIM provides administration services to the Funds. Pursuant to each Management Agreement, JPMIM is compensated as described in Note 3.A.
JPMorgan Chase Bank, N.A. (“JPMCB”), a wholly-owned subsidiary of JPMorgan, serves as the Funds' sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the management fees payable to JPMIM.
C. Custodian, Accounting and Transfer Agent Fees— JPMCB provides custody, accounting and transfer agency services to the Funds. For performing these services, JPMIM pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses.
Additionally, Authorized Participants generally pay transaction fees associated with the creation and redemption of Fund shares. These fees are paid to JPMIM to offset certain custodian charges that are covered by each Management Agreement.
Interest income earned on cash balances at the custodian, if any, is included in Interest income from affiliates on the Statements of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statements of Operations.
D. Distribution Services — The Distributor or its agent distributes Creation Units for each Fund on an agency basis. The Distributor does not maintain a secondary market in shares of each Fund. JPMDS receives no fees for their distribution services under the distribution agreement with the Trust (the “Distribution Agreement”). Although the Trust does not pay any fees under the Distribution Agreement, JPMIM pays JPMDS for certain distribution related services.
E. Waivers and Reimbursements — The Funds may invest in one or more money market funds advised by the Adviser (affiliated money market funds). The fees for the affiliated money market funds, except for investments of securities lending cash collateral, are covered under each Management Agreement as described in Note 3.A.
F. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. Such officers receive no compensation from the Funds for serving in their respective roles.
The Board designated and appointed a Chief Compliance Officer to the Funds pursuant to Rule 38a-1 under the 1940 Act. The fees associated with the office of the Chief Compliance Officer are paid for by JPMIM as described in Note 3.A.
The Securities and Exchange Commission (“SEC”) has granted an exemptive order permitting the Funds to engage in principal transactions with J.P. Morgan Securities LLC, an affiliated broker, involving taxable money market instruments, subject to certain conditions.
4. Investment Transactions
During the year ended October 31, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Purchases
(excluding
U.S. Government) | Sales
(excluding
U.S. Government) |
Climate Change Solutions ETF | | |
Sustainable Infrastructure ETF | | |
During the year ended October 31, 2023, there were no purchases or sales of U.S. Government securities.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
For the year ended October 31, 2023, in-kind transactions associated with creations and redemptions were as follows:
| | |
Sustainable Infrastructure ETF | | |
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
Climate Change Solutions ETF | | | | |
Sustainable Infrastructure ETF | | | | |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to wash sale loss deferrals.
The tax character of distributions paid during the year ended October 31, 2023 was as follows:
| | Net
Long-Term
Capital Gains | |
Climate Change Solutions ETF | | | |
Sustainable Infrastructure ETF | | | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended October 31, 2022 was as follows:
| | |
Climate Change Solutions ETF | | |
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
As of October 31, 2023, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows:
| Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
(Tax Basis Capital
Loss Carryover) | Unrealized
Appreciation
(Depreciation) |
Climate Change Solutions ETF | | | |
Sustainable Infrastructure ETF | | | |
The cumulative timing differences primarily consist of trustee deferred compensation and wash sale loss deferrals.
At October 31, 2023, the following Funds had net capital loss carryforwards, which are available to offset future realized gains:
| Capital Loss Carryforward Character |
| | |
Climate Change Solutions ETF | | |
Sustainable Infrastructure ETF | | |
| J.P. Morgan Exchange-Traded Funds | |
6. Capital Share Transactions
The Trust issues and redeems shares of the Funds only in Creation Units through the Distributor at NAV. Capital shares transactions detail can be found in the Statements of Changes in Net Assets.
Shares of the Funds may only be purchased or redeemed by Authorized Participants. Such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the Funds' shares outstanding and act as executing or clearing broker for investment transactions on behalf of the Funds. An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”); or (2) a DTC Participant; which, in either case, must have executed an agreement with the Distributor.
Creation Units of a Fund may be created in advance of receipt by the Trust of all or a portion of the applicable basket of equity securities and other instruments (“Deposit Instruments”) and cash as described in the Funds’ registration statement. In these instances, the initial Deposit Instruments and cash must be deposited in an amount equal to the sum of the cash amount plus at least 105% for the Funds of the market value of undelivered Deposit Instruments. A transaction fee may be imposed to offset transfer and other transaction costs associated with the purchase or redemption of Creation Units.
7. Borrowings
Effective November 1, 2022, the Funds rely upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Funds to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Funds because the Funds and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
The Funds had no borrowings outstanding from another fund, or loans outstanding to another fund, during the year ended October 31, 2023.
The Trust and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Funds. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to each Fund's borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until October 29, 2024.
The Funds had no borrowings outstanding from the unsecured, uncommitted credit facility during the year ended October 31, 2023.
Effective August 8, 2023, the Trust, along with certain other trusts for J.P. Morgan Funds (“Borrowers”), has entered into an existing joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. Although the Trust is effectively part of the Credit Facility as of August 8, 2023, it is not eligible to draw on the Credit Facility, and will not incur costs associated with being a part of the Credit Facility, until on or about May 28, 2024.
This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a minimum of $25 million in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the fund must remediate within three business days with respect to the $25 million minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% (the "Applicable Margin"), plus the greater of the federal funds effective rate or the one-month Adjusted Secured Overnight Financing Rate ("SOFR"). Effective August 8, 2023, the Credit Facility has been amended and restated for a term of 364 days, unless extended.
The Funds did not utilize the Credit Facility during the year ended October 31, 2023.
8. Risks, Concentrations and Indemnifications
In the normal course of business, the Funds enter into contracts that contain a variety of representations which provide general indemnifications. Each Fund's maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be brought against each Fund. However, based on experience, the Funds expect the risk of loss to be remote.
Significant shareholder transactions by these shareholders may impact the Funds' performance and liquidity.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
As of October 31, 2023, the Adviser owned shares representing more than 10% of net assets of the following Funds:
| |
Climate Change Solutions ETF | |
Sustainable Infrastructure ETF | |
Climate Change Solutions ETF’s investment strategy may result in the Climate Change Solutions ETF investing in securities or industry sectors that underperform the market. The Climate Change Solutions ETF’s focus on securities of issuers that, in the Adviser’s opinion, are developing solutions to address climate change and benefit from growing demand for such solutions will result in exposure to certain market segments including transportation, construction, food and water, renewable energy and electrification and recycling and reuse. Climate Change Solutions ETF will be more susceptible to events or factors affecting such market segments, and the market prices of its portfolio securities may be more volatile than those of funds that are more diversified. Climate Change Solutions ETF is particularly exposed to, and may be negatively impacted by changes in global and regional climates, environmental protection regulatory actions, changes in government standards and subsidy levels, changes in taxation and other domestic and international political, regulatory and economic developments. Companies involved in renewable energy and electrification also may be adversely affected by the increased use of, or decreases in prices for, oil or other fossil fuels. In addition, scientific developments, such as breakthroughs in the remediation of climate change, and changes in governmental policies relating to the effects of pollution may affect investments in pollution control, which could in turn affect these companies. Such companies also may be significantly affected by technological changes in industries focusing on energy, pollution control and mitigation of climate change. Because society’s focus on climate change issues is relatively new, the emphasis and direction of governmental policies is subject to significant change, and rapid technological change could render even new approaches and products obsolete. The Adviser may consider certain factors related to climate change that may cause it to perform differently compared to funds that do not have such considerations. The consideration of these factors may result in the Climate Change Solutions ETF forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for climate change reasons when it might otherwise be disadvantageous for it to do so. In addition, there is a risk that the companies identified by the Adviser do not operate as expected when addressing climate changes issues. There are significant differences in interpretations of what it means for a company to have solutions that address climate change.
Sustainable Infrastructure ETF’s investment strategy and the Adviser’s determinations of what is considered sustainable infrastructure may result in Sustainable Infrastructure ETF investing in securities or industry sectors that underperform the market and other funds that do not have the same considerations. Sustainable Infrastructure ETF’s focus on securities of issuers that, in the Adviser’s opinion, are developing solutions to address sustainable infrastructure and benefit from growing demand for such solutions will result in exposure to certain market segments, including certain types of utilities, electricity, renewables, transportation, water, digital, sustainable logistics, and medical. Such focus may result in Sustainable Infrastructure ETF’s forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for sustainability reasons when it might otherwise be disadvantageous for it to do so. In addition, there is a risk that the companies selected for their relation to the sub-themes do not operate as expected when addressing sustainability issues. Sustainable Infrastructure ETF will be more susceptible to events or factors affecting such market segments, and the market prices of its portfolio securities may be more volatile than those of funds that are more diversified. The factors that the Adviser considers in evaluating sustainable infrastructure may change over time. There may also be differences in interpretations of what it means for a company to “facilitate a sustainable and inclusive economy.” The portfolio decisions that the Adviser makes may differ with other investors’ or investment managers’ views. Sustainable Infrastructure ETF is particularly exposed to, and may be negatively impacted by changes in global and regional standards, environmental protection regulatory actions, government regulation of medical facilities, changes in government standards and subsidy levels, changes in taxation and other domestic and international political, regulatory and economic developments. In addition, scientific developments, such as breakthroughs in electrical and water engineering and advancements in technology, including digital technology and changes in governmental policies relating to infrastructure, may affect investments in infrastructure which could in turn affect these companies. Such companies also may be significantly affected by technological changes in industries focusing on energy, transportation, and digital infrastructure.
The Funds may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of foreign countries or regions, which may vary throughout the period. Such concentrations may subject each of these Funds to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
As of October 31, 2023, the following Fund had non-U.S. country allocations representing greater than 10% of total investments as follows:
| Sustainable
Infrastructure ETF |
| |
Investing in securities of foreign countries may include certain risks and considerations not typically associated with investing in U.S. securities. These risks include revaluation of currencies, high rates of inflation, repatriation restrictions on income and currencies, and future and adverse political, social and economic developments.
| J.P. Morgan Exchange-Traded Funds | |
The Funds invest in foreign issuers and foreign securities (including depositary receipts) that are subject to additional risks, including political and economic risks, unstable governments, civil conflicts and war, greater volatility, decreased market liquidity, expropriation and nationalization risks, sanctions or other measures by the United States or other governments, currency fluctuations, higher transaction costs, delayed settlement, possible foreign controls on investment, liquidity risks and less stringent investor protection and disclosure standards of foreign markets. In certain markets where securities and other instruments are not traded “delivery versus payment,” a Fund may not receive timely payment for securities or other instruments it has delivered or receive delivery of securities paid for and may be subject to increased risk that the counterparty will fail to make payments or delivery when due or default completely. Foreign market trading hours, clearance and settlement procedures, and holiday schedules may limit the Funds' ability to buy and sell securities.
Events and evolving conditions in certain economies or markets may alter the risks associated with investments tied to countries or regions that historically were perceived as comparatively stable becoming riskier and more volatile. The Funds each invest a substantial portion of their assets in emerging market countries. These risks are magnified in countries in emerging markets. Emerging market countries typically have less established market economies than developed countries and may face greater social, economic, regulatory and political uncertainties. In addition, emerging markets typically present greater illiquidity and price volatility concerns due to smaller or limited local capital markets and greater difficulty in determining market valuations of securities due to limited public information on issuers. Certain emerging market countries may be subject to less stringent requirements regarding accounting, auditing, financial reporting and record keeping and therefore, material information related to an investment may not be available or reliable. Additionally, the Funds may have substantial difficulties exercising their legal rights or enforcing a counterparty’s legal obligations in certain jurisdictions outside of the United States, in particular in emerging market countries, which can increase the risks of loss.
The Funds are subject to infectious disease epidemics/pandemics risk. For example, the outbreak of COVID-19 negatively affected economies, markets and individual companies throughout the world, including those in which the Funds invest. The effects of any future pandemic or other global event to business and market conditions may have a significant negative impact on the performance of a Fund's investments, increase a Fund's volatility, exacerbate other pre-existing political, social and economic risks to the Funds and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic or other global event that affect the instruments in which the Funds invest, or the issuers of such instruments, in ways that could have a significant negative impact on a Fund’s investment performance. The ultimate impact of any pandemic or other global event and the extent to which the associated conditions and governmental responses impact a Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of J.P. Morgan Exchange-Traded Fund Trust and Shareholders of each of the two funds listed in the table below
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of each of the funds listed in the table below (two of the funds constituting J.P. Morgan Exchange-Traded Fund Trust, hereafter collectively referred to as the "Funds") as of October 31, 2023, the related statements of operations and of changes in net assets for each of the periods indicated in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, and the results of each of their operations and the changes in each of their net assets for the periods indicated in the table below, and each of the financial highlights for each of the periods indicated therein, in conformity with accounting principles generally accepted in the United States of America.
Fund
JPMorgan Climate Change Solutions ETF (1) |
JPMorgan Sustainable Infrastructure ETF (2) |
| Statement of operations for the year ended October 31, 2023, and statement of changes in net assets for the year ended October 31, 2023 and the period December 13, 2021 (commencement of operations) through October 31, 2022 |
| Statement of operations for the year ended October 31, 2023, and statement of changes in net assets for the year ended October 31, 2023 and the period September 7, 2022 (commencement of operations) through October 31, 2022 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent, and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 21, 2023
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
| J.P. Morgan Exchange-Traded Funds | |
The Funds' Statement of Additional Information includes additional information about the Funds' Trustees and is available, without charge, upon request by calling 1-844-457-6383 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth);
Positions With
the Funds (1) | Principal Occupation
During Past 5 Years | Number of
Funds in Fund
Complex Overseen
by Trustee (2) | Other Directorships Held
During the Past 5 Years |
| |
John F. Finn (1947); Chair
since 2020; Trustee since 1998. | Chairman, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present). |
Stephen P. Fisher (1959);
Trustee since 2018. | Retired; Chairman and Chief Executive Officer, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | | Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). |
Gary L. French (1951);
Trustee since 2014. | Real Estate Investor (2011-2020); Investment management industry Consultant and Expert Witness (2011-present); Senior Consultant for The Regulatory Fundamentals Group LLC (2011-2017). | | Independent Trustee, The China Fund, Inc. (2013-2019); Exchange Traded Concepts Trust II (2012-2014); Exchange Traded Concepts Trust I (2011-2014). |
Kathleen M. Gallagher (1958);
Trustee since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | | Non- Executive Director, Legal & General Investment Management (Holdings) (2018-present); Non-Executive Director, Legal & General Investment Management America (U.S. Holdings) (financial services and insurance) (2017-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). |
Robert J. Grassi (1957);
Trustee since 2014. | Sole Proprietor, Academy Hills Advisors LLC (2012-present); Pension Director, Corning Incorporated (2002-2012). | | |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Frankie D. Hughes (1952);
Trustee since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | | |
Raymond Kanner (1953);
Trustee since 2017. | Retired; Managing Director and Chief Investment Officer, IBM Retirement Funds (2007-2016). | | Advisory Board Member, Penso Advisors, LLC (2020-present); Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017- present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016- 2017); Advisory Board Member, BlueStar Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). |
Thomas P. Lemke (1954);
Trustee since 2014. | | | (1) Independent Trustee of Advisors’ Inner Circle III fund platform, consisting of the following: (i) the Advisors’ Inner Circle Fund III, (ii) the Gallery Trust, (iii) the Schroder Series Trust, (iv) the Delaware Wilshire Private Markets Fund (since 2020), (v) Chiron Capital Allocation Fund Ltd., and (vi) formerly the Winton Diversified Opportunities Fund (2014-2018); and (2) Independent Trustee of the Symmetry Panoramic Trust (since 2018). |
Lawrence R. Maffia (1950);
Trustee since 2014. | Retired; Director and President, ICI Mutual Insurance Company (2006-2013). | | Director, ICI Mutual Insurance Company (1999-2013). |
Mary E. Martinez (1960); Vice
Chair since 2021; Trustee since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (asset management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | | |
Marilyn McCoy (1948);
Trustee since 1999. | Retired; Vice President of Administration and Planning, Northwestern University (1985-2023). | | |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Dr. Robert A. Oden, Jr. (1946); Trustee
since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | | Trustee, The Coldwater Conservation Fund (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Trustee and Vice Chair, Trout Unlimited (2017-2021); Trustee, Dartmouth- Hitchcock Medical Center (2011-2020). |
Marian U. Pardo* (1946);
Trustee since 2013. | Managing Director and Founder, Virtual Capital Management LLC (investment consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | | Board Chair and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
Emily A. Youssouf (1951);
Trustee since 2014. | Adjunct Professor (2011-present) and Clinical Professor (2009-2011), NYU Schack Institute of Real Estate; Board Member and Member of the Audit Committee (2013–present), Chair of Finance Committee (2019-present), Member of Related Parties Committee (2013-2018) and Member of the Enterprise Risk Committee (2015-2018), PennyMac Financial Services, Inc.; Board Member (2005-2018), Chair of Capital Committee (2006-2016), Chair of Audit Committee (2005-2018), Member of Finance Committee (2005-2018) and Chair of IT Committee (2016-2018), NYC Health and Hospitals Corporation. | | Trustee, NYC School Construction Authority (2009-present); Board Member, NYS Job Development Authority (2008-present); Trustee and Chair of the Audit Committee of the Transit Center Foundation (2015-2019). |
| |
Robert F. Deutsch** (1957);
Trustee since 2014. | Retired; Head of ETF Business for JPMorgan Asset Management (2013-2017); Head of Global Liquidity Business for JPMorgan Asset Management (2003-2013). | | Treasurer and Director of the JUST Capital Foundation (2017-present). |
Nina O. Shenker** (1957);
Trustee since 2022. | Vice Chair (2017-2021), General Counsel and Managing Director (2008-2016), Associate General Counsel and Managing Director (2004-2008), J.P. Morgan Asset & Wealth Management. | | Director and Member of Legal and Human Resources Subcommittees, American Jewish Joint Distribution Committee (2018-present). |
|
| The year shown is the first year in which a Trustee became a member of any of the following: the JPMorgan Mutual Fund Board, the JPMorgan ETF Board, the heritage J.P. Morgan Funds or the heritage One Group Mutual Funds. Trustees serve an indefinite term, until resignation, retirement, removal or death. The Board's current retirement policy sets retirement at the end of the calendar year in which the Trustee attains the age of 75, provided that any Board member who was a member of the JPMorgan Mutual Fund Board prior to January 1, 2022 and was born prior to January 1, 1950 shall retire from the Board at the end of the calendar year in which the Trustee attains the age of 78. |
| A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes nine registered investment companies (170 J.P. Morgan Funds). |
| In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
| Designation as an “Interested Trustee” is based on prior employment by the Adviser or an affiliate of the Adviser or interests in a control person of the Adviser. |
| The contact address for each of the Trustees is 277 Park Avenue, New York, NY 10172. |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth),
Positions Held with
the Trust (Since) | Principal Occupations During Past 5 Years |
Brian S. Shlissel (1964),
President and Principal Executive
Officer (2021) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. since 2014. |
Timothy J. Clemens (1975),
Treasurer and Principal Financial
Officer (2020) | Managing Director, J.P. Morgan Investment Management Inc. Mr. Clemens has been with J.P. Morgan Investment Management Inc. since 2013. |
Gregory S. Samuels (1980),
Secretary (2022) (formerly Assistant
Secretary 2014-2022) | Managing Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Samuels has been with JPMorgan Chase & Co. since 2010. |
Stephen M. Ungerman (1953),
Chief Compliance Officer (2014) | Managing Director, JPMorgan Chase & Co. Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. |
Kiesha Astwood-Smith (1973),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Senior Director and Counsel, Equitable Financial Life Insurance Company (formerly, AXA Equitable Life Insurance Company) from September 2015 through June 2021. |
Matthew Beck (1988),
Assistant Secretary (2021)* | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since May 2021; Senior Legal Counsel, Ultimus Fund Solutions from May 2018 through May 2021; General Counsel, The Nottingham Company from April 2014 through May 2018. |
Elizabeth A. Davin (1964),
Assistant Secretary (2022)
(formerly Secretary 2018-2022)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Davin has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 2004. |
Jessica K. Ditullio (1962),
Assistant Secretary (2014)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Ditullio has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 1990. |
Anthony Geron (1971),
Assistant Secretary (2019) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since September 2018; Lead Director and Counsel, AXA Equitable Life Insurance Company from 2015 to 2018 and Senior Director and Counsel, AXA Equitable Life Insurance Company from 2014 to 2015. |
Carmine Lekstutis (1980),
Assistant Secretary (2014) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Lekstutis has been with JPMorgan Chase & Co. since 2011. |
Max Vogel (1990),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Associate, Proskauer Rose LLP (law firm) from March 2017 to June 2021. |
Zachary E. Vonnegut-Gabovitch
(1986),
Assistant Secretary (2017) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Vonnegut-Gabovitch has been with JPMorgan Chase & Co. since September 2016. |
Frederick J. Cavaliere (1978),
Assistant Treasurer (2015)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Cavaliere has been with JPMorgan Chase & Co. since May 2006. |
Michael M. D’Ambrosio (1969),
Assistant Treasurer (2014) | Managing Director, J.P. Morgan Investment Management Inc. Mr. D’Ambrosio has been with J.P. Morgan Investment Management Inc. since 2012. |
Aleksandr Fleytekh (1972),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Mr. Fleytekh has been with J.P. Morgan Investment Management Inc. since February 2012. |
Shannon Gaines (1977),
Assistant Treasurer (2019)* | Executive Director, J.P. Morgan Investment Management Inc. Mr. Gaines has been with J.P. Morgan Investment Management Inc. since January 2014. |
Jeffrey D. House (1972),
Assistant Treasurer (2023)* | Vice President, J.P. Morgan Investment Management Inc. Mr. House has been with J.P. Morgan Investment Management Inc. since July 2006. |
Michael Mannarino (1985),
Assistant Treasurer (2023) | Vice President, J.P. Morgan Investment Management Inc. Mr. Mannarino has been with J.P. Morgan Investment Management Inc. since 2014. |
| J.P. Morgan Exchange-Traded Funds | |
OFFICERS(Unaudited) (continued)
Nektarios E. Manolakakis (1972),
Assistant Treasurer (2020) | Executive Director, J.P. Morgan Investment Management Inc. since February 2021, formerly Vice President, J.P. Morgan Investment Management Inc. since 2014; Vice President, J.P. Morgan Corporate & Investment Bank 2010-2014. |
Todd McEwen (1981),
Assistant Treasurer (2020)* | Vice President, J.P. Morgan Investment Management Inc. Mr. McEwen has been with J.P. Morgan Investment Management Inc. since 2010. |
Joseph Parascondola (1963),
Assistant Treasurer (2023)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Parascondola has been with J.P. Morgan Investment Management Inc. since 2006. |
Gillian I. Sands (1969),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Ms. Sands has been with J.P. Morgan Investment Management Inc. since September 2012. |
|
The contact address for each of the officers, unless otherwise noted, is 277 Park Avenue, New York, NY 10172. |
| The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| The contact address for the officer is 575 Washington Boulevard, Jersey City, NJ 07310. |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including brokerage commissions on your purchase and sales of Fund shares and (2) ongoing costs, primarily management fees. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these ongoing costs with the ongoing costs of investing in other funds. The examples assume that you had a $1,000 investment at the beginning of the reporting period, May 1, 2023, and continued to hold your shares at the end of the reporting period, October 31, 2023.
Actual Expenses
For each Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Fund under the heading titled “Expenses Paid During the
Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The examples also assume all dividends and distributions have been reinvested. The examples do not take into account brokerage commissions that you pay when purchasing or selling shares of a Fund.
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | | |
JPMorgan Climate Change Solutions ETF | | | | |
| | | | |
| | | | |
JPMorgan Sustainable Infrastructure ETF | | | | |
| | | | |
| | | | |
|
| Expenses are equal to each Fund's annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| J.P. Morgan Exchange-Traded Funds | |
LIQUIDITY RISK MANAGEMENT PROGRAM(Unaudited)
Each of the Funds covered in this report has adopted the J.P. Morgan Funds and J.P. Morgan Exchange-Traded Funds Amended and Restated Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Program seeks to assess, manage and review each Fund’s Liquidity Risk. “Liquidity Risk” is defined as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. Pursuant to an exemptive order (the “Exemptive Order”) from the Securities and Exchange Commission, the Program permits the Funds to use liquidity definitions and classification methodologies that differ from the requirements under the Liquidity Rule in some respects. Among other things, the Liquidity Rule requires that a written report be provided to the Board of Trustees (the “Board”) on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of any Highly Liquid Investment Minimum (“HLIM”), where applicable, and any material changes to the Program.
The Board has appointed J.P. Morgan Asset Management’s Liquidity Risk Forum to be the program administrator for the Program (the “Program Administrator”). In addition to regular reporting at each of its quarterly meetings, on February 7, 2023, the Board reviewed the Program Administrator’s annual written report (the “Report”) concerning the operation of the Program for the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, where applicable, the operation of a Fund’s HLIM. There were no material changes to the Program during the Program Reporting Period.
The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program has been adequately and effectively implemented with respect to each Fund. Such information and factors included, among other things: (1) the effectiveness of the Program with respect to the identification of each Fund that qualifies as an “In-Kind ETF” (as defined in the Liquidity Rule); (2) the liquidity risk framework used to assess, manage, and periodically review each Fund’s Liquidity Risk and the results of this assessment; (3) the methodology and inputs for classifying the investments of a Fund (other than an In-Kind ETF) into one of the required liquidity categories that reflect an estimate of the liquidity of those investments under current market conditions (and, for In-Kind ETFs, the methodology and inputs for determining whether any investments should be classified as “Illiquid Investments” (as defined or modified under the Program)); (4) whether a Fund (other than an In-Kind ETF) invested primarily in “Highly Liquid Investments” (as defined or modified under the Program), as well as whether an HLIM should be established for a Fund (other than an In-Kind ETF) and the procedures for monitoring any HLIM; (5) whether a Fund invested more than 15% of its assets in “Illiquid Investments” and the procedures for monitoring for this limit; and (6) specific liquidity events arising during the Program Reporting Period. The Report further summarized the conditions of the Exemptive Order and whether all applicable Funds were in compliance with the terms of the Exemptive Order.
Based on this review, the Report concluded that: (1) the Program continues to be reasonably designed to effectively assess and manage each Fund’s Liquidity Risk; and (2) the Program has been adequately and effectively implemented with respect to each Fund during the Program Reporting Period.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited)
The Board of Trustees (the “Board” or the “Trustees”) has established various standing committees composed of Trustees with diverse backgrounds, to which the Board has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board and its investment committees (Money Market and Alternative Products Committee, Equity Committee, and Fixed Income Committee) met regularly throughout the year and, at each meeting, considered factors that are relevant to their annual consideration of the continuation of the management agreements. The Board also met for the specific purpose of considering management agreement annual renewals. The Board held meetings June 20-21, 2023 and August 8-10, 2023, at which the Trustees considered the continuation of the management agreements for the Funds whose annual report is contained herein (each a “Management Agreement” and collectively, the “Management Agreements”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered each investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not parties to a Management Agreement or “interested persons” (as defined in the Investment Company Act of 1940) of any party to a Management Agreement or any of their affiliates, approved the continuation of each Management Agreement on August 10, 2023.
As part of their review of the Management Agreements, the Trustees considered and reviewed performance and other information about the Funds received from J.P. Morgan Investment Management Inc. (the “Adviser”). This information included the Funds’ performance as compared to the performance of their peers and benchmarks, and analyses by the Adviser of the Funds’ performance. In addition, at each of their regular meetings throughout the year, the Trustees considered reports on the performance of certain J.P. Morgan Funds provided by an independent investment consulting firm (the “independent consultant”). In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance for the JPMorgan Climate Change Solutions ETF only, and expense information for both Funds, compiled by Broadridge, using data from Lipper Inc. and/or Morningstar Inc., independent providers of investment company data (together, “Broadridge”). Broadridge did not include performance information for the JPMorgan Sustainable Infrastructure ETF because the Fund had less than one year of performance. The Trustees’ independent consultant also provided additional quantitative and statistical analyses of certain Funds, including risk and performance return assessments as compared to the Funds’ objectives, benchmarks, and peers. Before voting on the
Management Agreements, the Trustees reviewed the Management Agreements with representatives of the Adviser, counsel to the Funds, and independent legal counsel to the Trustees, and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for their consideration of the Management Agreements. The Trustees also discussed the Management Agreements with independent legal counsel in executive sessions at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve each Management Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Funds throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighing the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from each Fund under the applicable Management Agreement was fair and reasonable under the circumstances, and determined that the continuance of each Management Agreement was in the best interests of each Fund and its shareholders.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of services provided to each Fund under the applicable Management Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel, including personnel changes, if any;
• The qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of each Fund, including personnel changes, if any;
• The investment strategy for each Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy for each Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF MANAGEMENT AGREEMENTS(Unaudited) (continued)
• The administration services provided by the Adviser in its role as Administrator;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Funds and in the financial industry generally;
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Funds;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to each Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the services provided to the Funds by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates from providing services to each Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser and reviewed with the Board. The Trustees also recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, and taking into consideration the factors noted above, the Trustees concluded that the profitability to the Adviser under each Management Agreement was not unreasonable in light of the services and benefits provided to each Fund.
The Trustees also considered the fees earned by JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, for custody, fund accounting and other related services for each Fund, and the profitability of the arrangements to JPMCB.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Funds. The Trustees considered that the J.P. Morgan Funds' operating accounts are held at JPMCB, which, as a result, will receive float benefits for certain J.P. Morgan Funds, as applicable. The Trustees also noted that the Adviser supports a diverse set of products and services, which benefits the Adviser by allowing it to leverage its infrastructure to serve additional clients, including benefits that may be received by the Adviser and its affiliates in connection with the Funds’ potential investments in other funds advised by the Adviser. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser, as well as the Adviser’s use of affiliates to provide other services and the benefits to such affiliates of doing so. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Funds.
Economies of Scale
The Trustees considered the extent to which the Funds may benefit from potential economies of scale. The Trustees considered that under the Management Agreements, the Adviser provides advisory and administrative services and is responsible for substantially all expenses of each Fund under a “unitary fee structure.” The Trustees noted that unitary management fee for each Fund does not contain breakpoints. The Trustees considered that shareholders would benefit because expenses are limited even when a Fund is new and not achieving economies of scale. The Trustees considered the fact that increases in assets would not lead to management fee decreases even if economies of scale are achieved, but also that the Trustees would have the opportunity to further review the appropriateness of the fee payable to the Adviser under the Management Agreement in the future. The Trustees also concluded that all Funds benefited from the Adviser’s reinvestment in its operations to serve the Funds and their shareholders. The Trustees noted that the Adviser’s reinvestment ensures sufficient resources in terms of personnel and infrastructure to support the Funds. After considering the factors identified above, the Trustees concluded that the Fund’s shareholders will receive the benefits of potential economies of scale.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of management services and fee rates offered to other clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for investment management styles substantially similar to that of each Fund.
| J.P. Morgan Exchange-Traded Funds | |
The Trustees considered the complexity of investment management for registered investment companies relative to the Adviser’s other clients and noted differences, as applicable, in the fee structure and the regulatory, legal and other risks and responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered investment company involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to each Fund. The Trustees also noted that the adviser, not the applicable registered investment company, typically bears the sub-advisory fee and that many responsibilities related to the advisory function are typically retained by the primary adviser. The Trustees concluded that the fee rates charged to each Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees receive and consider information about each Fund’s performance throughout the year. In addition, the Trustees received and considered absolute and relative performance information for the JPMorgan Climate Change Solutions ETF in a report prepared by Broadridge. The Trustees considered the total return performance information, which included the ranking of the JPMorgan Climate Change Solutions ETF within a performance universe comprised of funds with the same Morningstar investment classification and objective as the JPMorgan Climate Change Solutions ETF (the “Universe”), by total return for the applicable one-year periods. The Trustees reviewed a description of Broadridge’s methodology for selecting exchange-traded funds in the Fund’s Universe, and noted that Universe quintile rankings were not calculated if the number of funds in the Universe did not meet a predetermined minimum. The Trustees also considered each Fund’s investment strategy and processes, portfolio management teams and competitive positioning against peer funds, as identified by Broadridge and/or management. As part of this review, the Trustees also reviewed each Fund’s performance against its benchmark and considered the performance information provided for the Funds at regular Board meetings by the Adviser and the Trustees’ independent consultant and also considered the special analysis prepared for certain Funds by the Trustees’ independent consultant. The Trustees also engaged with the Adviser to consider what steps might be taken to improve performance, as applicable. The Broadridge performance data noted by the Trustees as part of their review and the determinations made by the Trustees with respect to each Fund’s performance are summarized below:
The Trustees noted that the JPMorgan Climate Change Solutions ETF’s performance was in the first quintile of the Universe for
the one-year period ended December 31, 2022. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
The Trustees considered the brief operating history of the JPMorgan Sustainable Infrastructure ETF, and discussed the Fund’s performance. The Trustees also discussed the performance and the investment strategy of the Fund with the Adviser. Based on these discussions and various other factors, the Trustees concluded the Fund’s performance was satisfactory.
Management Fees and Expense Ratios
The Trustees considered that under the Management Agreements, the Adviser will provide advisory and administrative services and will be responsible for substantially all expenses of each Fund (“unitary fee structure”). The Trustees considered the contractual management fee rate paid by each Fund to the Adviser and compared the rate to the information prepared by Broadridge concerning management fee rates paid by other funds in the Universe, as well as a subset of funds within the Universe (the “Peer Group”). The Trustees reviewed a description of Broadridge’s methodology for selecting funds in the Peer Group and Universe, as applicable, and noted that Universe and Peer Group quintile rankings were not calculated if the number of funds in the Universe and/or Peer Group did not meet a predetermined minimum. The Trustees compared the management fee for each Fund to fees charged to mutual funds and/or institutional accounts with similar investment objectives or in similar asset classes managed by the Adviser. The Trustees recognized that it can be difficult to make comparisons of management fees because there are variations in the services that are included in the fees paid by other accounts. The Trustees’ determinations as a result of the review of each Fund’s management fees and expense ratios are summarized below:
The Trustees noted that while Broadridge provided data for funds in the Peer Group and Universe for the JPMorgan Climate Change Solutions ETF and JPMorgan Sustainable Infrastructure ETF, Broadridge did not calculate quintile rankings due to the limited number of funds in both the Peer Group and Universe. After considering the fees relative to the funds in the Peer Group, the Trustees concluded that the management fee was fair and reasonable in light of the services provided to the Fund.
| J.P. Morgan Exchange-Traded Funds | |
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2023. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2023. The information necessary to complete your income tax returns for the calendar year ending December 31, 2023 will be provided under separate cover.
Dividends Received Deduction (DRD)
Each Fund listed below had the following percentage, or maximum allowable percentage, of ordinary income distributions eligible for the dividends received deduction for corporate shareholders for the fiscal year ended October 31, 2023:
| Dividends
Received
Deduction |
JPMorgan Climate Change Solutions ETF | |
JPMorgan Sustainable Infrastructure ETF | |
Long Term Capital Gain
Each Fund listed below distributed the following amount, or maximum allowable amount, of long-term capital gain dividends for the fiscal year ended October 31, 2023:
| Long-Term
Capital Gain
Distribution |
JPMorgan Sustainable Infrastructure ETF | |
Qualified Dividend Income (QDI)
Each Fund listed below had the following amount, or maximum allowable amount, of ordinary income distributions and foreign tax credits (if applicable) treated as qualified dividends for the fiscal year ended October 31, 2023:
| |
JPMorgan Climate Change Solutions ETF | |
JPMorgan Sustainable Infrastructure ETF | |
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2023, the following Funds intend to elect to pass through to shareholders taxes paid to foreign countries. Gross income and foreign tax expenses are as follows or amounts as finally determined:
| Total Foreign
Source Income | |
JPMorgan Climate Change Solutions ETF | | |
JPMorgan Sustainable Infrastructure ETF | | |
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the Funds.
Contact J.P. Morgan Exchange-Traded Funds at 1-844-457-6383 (844-4JPM ETF) for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The prospectus contains this and other information about the fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by visiting www.sipc.org or by calling SIPC at 202-371-8300.
Each Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC as an exhibit to its report on Form N-PORT. The Funds' Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. Each Fund's quarterly holdings can be found by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Effective January 24, 2023, the SEC adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
A description of each Fund's policies and procedures with respect to the disclosure of each Fund's holdings is available in the prospectus and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-844-457-6383 and on the Funds' website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Funds to the Adviser. A copy of the Funds' voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Funds' website at www.jpmorganfunds.com no later than August 31 of each year. The Funds' proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
© JPMorgan Chase & Co., 2023. All rights reserved. October 2023.
AN-SUS-ETF-1023
Annual Report
J.P. Morgan Exchange-Traded Funds
October 31, 2023
| | |
JPMorgan International Research Enhanced Equity ETF | | |
CONTENTS
Investments in the Fund are not deposits or obligations of, or guaranteed or endorsed by, any bank and are not insured or guaranteed by the FDIC, the Federal Reserve Board or any other government agency. You could lose money if you sell when the Fund’s share price is lower than when you invested.
Past performance is no guarantee of future performance. The general market views expressed in this report are opinions based on market and other conditions through the end of the reporting period and are subject to change without notice. These views are not intended to predict the future performance of the Fund or the securities markets.
Prospective investors should refer to the Fund's prospectus for a discussion of the Fund's investment objectives, strategies and risks. Call J.P. Morgan Exchange-Traded Funds at (844) 457-6383 for a prospectus containing more complete information about the Fund, including management fees and other expenses. Please read it carefully before investing.
Shares are bought and sold throughout the day on an exchange at market price (not at net asset value) through a brokerage account, and are not individually subscribed and redeemed from the Fund. Shares may only be subscribed and redeemed directly from the Fund by Authorized Participants, in large creation/redemption units. Brokerage commissions will reduce returns.
President's LetterDecember 14, 2023 (Unaudited)
Dear Shareholder,
While the U.S. economy generally performed well this year, global economic growth has been uneven in the face of elevated interest rates and heightened geopolitical tensions. Equity markets largely outperformed fixed income markets for the twelve months ended October 31, 2023, though rising yields lifted investor demand for certain types of bonds.
|
"The strong performance of financial markets in 2023 created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.” — Brian S. Shlissel
|
Inflationary pressures have receded sufficiently so far that the U.S. Federal Reserve declined to raise interest rates since September 2023 and signaled it may reduce rates three times in 2024. Both the European Central Bank and the Bank of England also declined to raise interest rates in the third quarter of 2023. Financial markets largely responded positively to the central banks’ policy stances, though the view that interest rates could remain “higher for longer” appeared to temper investor optimism.
Overall, corporate earnings and revenues within developed markets generally continued to grow through the first three quarters of 2023, though certain surveys indicated many businesses anticipate demand to slow next year. Emerging markets experienced a wider dispersion in economic performance and corporate results, partly due to slower economic growth in China, post-pandemic changes to global supply chains and elevated debt servicing costs.
While some assert that the risk of economic recession has receded in 2023, the risk remains. China’s struggling property sector could further undermine economic growth and spill over to certain commodity exporting nations. Additionally, there is no clear timing with regard to the resolution of the war in Ukraine, which continues to impact global energy and grain supplies. The Israel-Hamas conflict has the potential to both widen militarily and to impact international trade and prices for energy and food. However, financial markets have generally continued to function without major disruptions during the period.
The strong performance of financial markets has created wider differences in equity valuations that may provide attractive opportunities for investors. Additionally, interest rate reductions next year could benefit high-quality fixed income investments.
Our suite of investment solutions seeks to provide investors with the ability to build durable portfolios that meet their financial goals, regardless of macroeconomic and geopolitical uncertainties.
Sincerely,
Brian S. Shlissel
President, J.P. Morgan Exchange-Traded Funds
J.P. Morgan Asset Management
1-844-4JPM-ETF or jpmorgan.com/etfs for more information
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Research Enhanced Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited)
| |
| |
| |
MSCI EAFE Index (net total return) | |
Net Assets as of 10/31/2023 | |
| |
INVESTMENT OBJECTIVE***
The JPMorgan International Research Enhanced Equity ETF (the “Fund”) seeks to provide long-term capital appreciation.
INVESTMENT APPROACH
The Fund invests primarily in foreign companies and may modestly overweight equity securities that the adviser considers undervalued, while modestly underweighting or not holding equity securities that appear overvalued. The Fund seeks to outperform the MSCI Europe, Australasia, Far East (EAFE) Index (net total return) (the “Benchmark”) over time, while maintaining similar risk characteristics, including sector and geographic risks.
HOW DID MARKETS PERFORM?
Equity markets continued to outperform bond markets during the period, generating positive returns largely due to gains made during the first half of the 2023. Following a surge in U.S. equity prices, investors largely sought lower equity valuations in international markets in the second half of the period.
Overall, equities in international developed markets outperformed both emerging market and U.S. equities. Growth stocks and large capitalization stocks largely outperformed value stocks and mid cap and small cap stocks. Within fixed income markets, emerging markets debt and lower-rated bonds in developed markets generally outperformed U.S. Treasury bonds.
While the U.S. Federal Reserve, the European Central Bank and the Bank of England continued to raise interest rates at regular intervals through the first half of 2023, declining inflationary pressures allowed all three central banks to withhold further increases at the end of the reporting period.
Corporate earnings were generally better-than-expected for most of the period but results for the third quarter of 2023 showed some slowing in earnings and revenue growth. Tight labor markets in the U.S. eased somewhat in the final months of the period and the jobless rate rose to 3.8% in October 2023, which raised investor expectations that inflation would continue to slow.
Global energy prices largely fell during the period amid slowing demand from China and leading industrialized nations. Crude
oil prices spiked briefly in September 2023 when Saudi Arabia and Russia extended production cuts and again in early October at the outbreak of the Israel-Hamas conflict. However, global petroleum prices receded by the end of the period as economic data, including U.S. gasoline consumption, continued to indicate slowing global demand.
Notably, financial sector stocks were roiled by the collapse of Silicon Valley Bank in late March 2023, followed closely by the failures of Signature Bank and Credit Suisse. In each case, government regulators moved to prevent the erosion of consumer and investor confidence in the banking system.
WHAT WERE THE MAIN DRIVERS OF THE FUND’S PERFORMANCE?
The Fund outperformed the Benchmark for the twelve months ended October 31, 2023.
By sector, the Fund’s security selection in the financial services and the consumer cyclical & services sectors was a leading contributor to performance relative to the Benchmark, while the Fund’s security selection in the technology - semiconductors & hardware and the retail sectors was a leading detractor from relative performance.
By region, the Fund’s security selection in Europe and the Pacific, excluding Japan, was a leading contributor to performance relative to the Benchmark, while the Fund’s allocation to Japan was the sole regional detractor from relative performance.
Due to the Fund holding a relatively large number of securities during the reporting period, the impact of individual holdings on the Fund’s relative performance tended to be small.
HOW WAS THE FUND POSITIONED?
Using the fundamental equity insights generated by analysts, the Fund’s adviser took overweight positions in securities included within the universe of the Benchmark that it considered undervalued, while underweighting or not holding securities in the Benchmark that the adviser considered
overvalued.
| J.P. Morgan Exchange-Traded Funds | |
*
The return shown is based on net asset value and may differ from the return shown in the financial highlights, which reflects adjustments made to the net asset value in accordance with accounting principles generally accepted in the United States of America. The net asset value was $52.83 as of October 31, 2023.
**
Market price return was calculated assuming an initial investment made at the market price at the beginning of the reporting period, reinvestment of all dividends and distributions at the market price during the period, and sale at the market price on the last day of the period. The price used to calculate the market price return was the closing price on the NYSE Arca, Inc. As of October 31, 2023, the closing price was $53.01.
***
The adviser seeks to achieve the Fund’s objective. There can be no guarantee it will be achieved.
TOP TEN HOLDINGS OF THE
PORTFOLIO AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| Novo Nordisk A/S, Class B (Denmark) | |
| | |
| ASML Holding NV (Netherlands) | |
| | |
| LVMH Moet Hennessy Louis Vuitton SE (France) | |
| AstraZeneca plc (United Kingdom) | |
| | |
| | |
| Allianz SE (Registered) (Germany) | |
| | |
PORTFOLIO COMPOSITION BY COUNTRY
AS OF October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Others (each less than 1.0%) | |
| |
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Research Enhanced Equity ETF
FUND COMMENTARYTWELVE MONTHS ENDED October 31, 2023 (Unaudited) (continued)
AVERAGE ANNUAL TOTAL RETURNS AS OF October 31, 2023 (Unaudited)
| | | | |
JPMorgan International Research Enhanced Equity ETF | | | | |
| | | | |
| | | | |
|
| Inception date for Class R6 Shares of the Predecessor Fund (as defined below). |
TEN YEAR FUND PERFORMANCE (10/31/13 TO 10/31/23)
The performance quoted is past performance and is not a guarantee of future results. Exchange-traded funds are subject to certain market risks. Investment returns and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance data shown. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383.
JPMorgan International Research Enhanced Equity ETF (the “Fund”) acquired the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund (“Predecessor Fund”) in a reorganization that occurred as of the close of business on June 10, 2022. Performance and financial history of the Predecessor Fund’s Class R6 Shares have been adopted by the Fund and will be used going forward. As a result, the performance for the Fund prior to close of business on June 10, 2022 is the performance of the Predecessor Fund’s Class R6 Shares. Inception date for the Predecessor Fund’s Class R6 Shares is November 1, 2017. Returns for the Predecessor Fund’s Class R6 Shares prior to their inception date are based on the performance of the Predecessors Fund’s Class I Shares. The actual returns of the Predecessor Fund’s Class R6 Shares would have been different than those shown because the Predecessor Fund’s Class R6 Shares had different expenses than the Predecessor Fund’s Class I Shares. Inception date for the Predecessor Fund’s Class I Shares is October 28, 1992.
Performance for the Fund’s shares has not been adjusted to reflect the Fund’s shares’ lower expenses than those of the Predecessor Fund’s Class R6 Shares and Class I Shares. Had the Predecessor Fund been structured as an exchange-traded fund (“ETF”), its performance may have differed. Performance for the Predecessor Fund is based on the net asset value ("NAV") per share of the Predecessor Fund Shares rather than on market-determined prices. Prior to
the Fund’s listing on June 13, 2022, the NAV performance of the Fund and the Class R6 Shares of the Predecessor Fund are used as proxy market price returns.
The graph illustrates comparative performance for $10,000 invested in shares of the Fund and the MSCI EAFE Index (net total return) from October 31, 2013 to October 31, 2023. The performance of the Fund assumes reinvestment of all dividends and capital gain distributions, if any. The performance of the MSCI EAFE Index (net total return) does not reflect the deduction of expenses associated with an ETF and approximates the minimum possible dividend reinvestment of the securities included in the benchmark, if applicable. The MSCI EAFE (Europe, Australasia, Far East) Index (net total return) is a free float-adjusted market capitalization weighted index that is designed to measure the performance of large- and mid- cap stocks in developed markets, excluding the U.S. and Canada. Net total return figures assume the reinvestment of dividends after deduction of withholding tax, applying the maximum rate to nonresident individual investors who do not benefit from double taxation treaties. Investors cannot invest directly in an index.
Fund performance may reflect the waiver of the Fund’s fees and reimbursement of expenses for certain periods since the applicable inception date. Without these waivers and reimbursements, performance would have been lower. Also, performance shown in this section does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on gains resulting from redemption or sale of Fund shares.
The returns shown are based on NAVs calculated for shareholder transactions and may differ from the returns shown in the financial highlights, which reflect adjustments made to the NAVs in accordance with accounting principles generally accepted in the United States of America.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Research Enhanced Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023
| | |
|
|
| | |
| | |
| | |
| | |
Commonwealth Bank of Australia | | |
| | |
| | |
| | |
| | |
Insurance Australia Group Ltd. | | |
| | |
| | |
| | |
National Australia Bank Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Woodside Energy Group Ltd. | | |
| | |
| | |
|
| | |
|
BOC Hong Kong Holdings Ltd. | | |
| | |
Xinyi Glass Holdings Ltd. | | |
| | |
|
| | |
| | |
Novo Nordisk A/S, Class B | | |
| | |
|
| | |
| | |
| | |
|
| | |
| | |
|
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
LVMH Moet Hennessy Louis Vuitton SE | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
Deutsche Telekom AG (Registered) | | |
Dr Ing hc F Porsche AG (Preference) (a) | | |
| | |
| | |
| | |
Muenchener Rueckversicherungs- Gesellschaft AG (Registered) | | |
| | |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
Hong Kong Exchanges & Clearing Ltd. | | |
| | |
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Research Enhanced Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| | |
Common Stocks — continued |
|
Sun Hung Kai Properties Ltd. | | |
Techtronic Industries Co. Ltd. | | |
| | |
|
| | |
|
| | |
FinecoBank Banca Fineco SpA | | |
| | |
| | |
|
| | |
| | |
Asahi Group Holdings Ltd. | | |
| | |
| | |
Central Japan Railway Co. | | |
| | |
| | |
Daiwa House Industry Co. Ltd. | | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Mitsubishi UFJ Financial Group, Inc. | | |
| | |
Murata Manufacturing Co. Ltd. | | |
| | |
| | |
Nippon Paint Holdings Co. Ltd. | | |
| | |
Nippon Telegraph & Telephone Corp. | | |
Nomura Research Institute Ltd. | | |
| | |
|
|
| | |
| | |
| | |
Recruit Holdings Co. Ltd. | | |
Renesas Electronics Corp. * | | |
Seven & i Holdings Co. Ltd. | | |
| | |
Shin-Etsu Chemical Co. Ltd. | | |
| | |
| | |
| | |
| | |
Sumitomo Electric Industries Ltd. | | |
Sumitomo Metal Mining Co. Ltd. | | |
Sumitomo Mitsui Financial Group, Inc. | | |
| | |
| | |
Takeda Pharmaceutical Co. Ltd. | | |
| | |
Tokio Marine Holdings, Inc. | | |
| | |
| | |
| | |
| | |
|
| | |
|
| | |
| | |
Koninklijke Ahold Delhaize NV | | |
| | |
| | |
| | |
| | |
| | |
|
| | |
Oversea-Chinese Banking Corp. Ltd. | | |
| | |
United Overseas Bank Ltd. | | |
| | |
|
| | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| | |
Common Stocks — continued |
|
Banco Bilbao Vizcaya Argentaria SA | | |
| | |
| | |
Industria de Diseno Textil SA (c) | | |
| | |
|
| | |
| | |
Skandinaviska Enskilda Banken AB, Class A | | |
| | |
| | |
|
Cie Financiere Richemont SA (Registered) | | |
| | |
| | |
| | |
Lonza Group AG (Registered) | | |
| | |
| | |
| | |
| | |
UBS Group AG (Registered) | | |
Zurich Insurance Group AG | | |
| | |
|
| | |
| | |
| | |
Berkeley Group Holdings plc | | |
| | |
British American Tobacco plc | | |
| | |
| | |
| | |
| | |
InterContinental Hotels Group plc | | |
| | |
| | |
London Stock Exchange Group plc | | |
| | |
Reckitt Benckiser Group plc | | |
| | |
| | |
| | |
|
United Kingdom — continued |
| | |
| | |
| | |
| | |
| | |
|
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Total Common Stocks
(Cost $4,597,931,676) | | |
Short-Term Investments — 3.9% |
Investment Companies — 3.6% |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (d) (e)(Cost $182,499,052) | | |
Investment of Cash Collateral from Securities Loaned — 0.3% |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (d) (e) | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (d) (e) | | |
Total Investment of Cash Collateral from Securities Loaned
(Cost $13,828,971) | | |
Total Short-Term Investments
(Cost $196,328,023) | | |
Total Investments — 99.5%
(Cost $4,794,259,699) | | |
Other Assets Less Liabilities — 0.5% | | |
| | |
Percentages indicated are based on net assets. |
| |
| American Depositary Receipt |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
JPMorgan International Research Enhanced Equity ETF
SCHEDULE OF PORTFOLIO INVESTMENTSAS OF October 31, 2023 (continued)
| A special type of equity investment that shares in the earnings of the company, has limited voting rights, and may have a dividend preference. Preference shares may also have liquidation preference. |
| Real Estate Investment Trust |
| Non-income producing security. |
| Securities exempt from registration under Rule 144A or section 4(a)(2), of the Securities Act of 1933, as amended. |
| Security exempt from registration pursuant to Regulation S under the Securities Act of 1933, as amended. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States and as such may have restrictions on resale. |
| The security or a portion of this security is on loan at October 31, 2023. The total value of securities on loan at October 31, 2023 is $12,944,241. |
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
Summary of Investments by Industry, October 31, 2023
The following table represents the portfolio investments of the Fund by industry classifications as a percentage of total investments:
INDUSTRY October 31, 2023 | PERCENT OF
TOTAL
INVESTMENTS |
| |
| |
| |
Oil, Gas & Consumable Fuels | |
Semiconductors & Semiconductor Equipment | |
| |
| |
| |
Textiles, Apparel & Luxury Goods | |
| |
| |
Diversified Telecommunication Services | |
| |
| |
| |
| |
| |
| |
Trading Companies & Distributors | |
| |
| |
| |
| |
Consumer Staples Distribution & Retail | |
Electronic Equipment, Instruments & Components | |
| |
Real Estate Management & Development | |
Construction & Engineering | |
Health Care Equipment & Supplies | |
| |
| |
Others (each less than 1.0%) | |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
Futures contracts outstanding as of October 31, 2023:
| | | | | VALUE AND
UNREALIZED
APPRECIATION
(DEPRECIATION) ($) |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| |
| |
| Europe, Australasia and Far East |
| Morgan Stanley Capital International |
| Australian Securities Exchange |
| |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENT OF ASSETS AND LIABILITIESAS OF October 31, 2023
| JPMorgan
International
Research
Enhanced
Equity ETF |
| |
Investments in non-affiliates, at value | |
Investments in affiliates, at value | |
Investments of cash collateral received from securities loaned, at value (See Note 2.C.) | |
| |
Foreign currency, at value | |
Deposits at broker for futures contracts | |
| |
Dividends from non-affiliates | |
Dividends from affiliates | |
| |
Securities lending income (See Note 2.C.) | |
Variation margin on futures contracts | |
| |
| |
| |
Investment securities purchased | |
Collateral received on securities loaned (See Note 2.C.) | |
| |
| |
| |
Printing and mailing costs | |
Custodian and accounting fees | |
Trustees’ and Chief Compliance Officer’s fees | |
| |
| |
| |
| |
| |
Total distributable earnings (loss) | |
| |
Outstanding number of shares
(unlimited number of shares authorized - par value $0.0001) | |
Net asset value, per share | |
Cost of investments in non-affiliates | |
Cost of investments in affiliates | |
| |
Investment securities on loan, at value (See Note 2.C.) | |
Cost of investment of cash collateral (See Note 2.C.) | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENT OF OPERATIONSFOR THE YEAR ENDED October 31, 2023
| JPMorgan
International
Research
Enhanced
Equity ETF |
| |
Interest income from non-affiliates | |
Interest income from affiliates | |
Dividend income from non-affiliates | |
Dividend income from affiliates | |
Income from securities lending (net) (See Note 2.C.) | |
Foreign taxes withheld (net) | |
| |
| |
| |
| |
Custodian and accounting fees | |
Interest expense to non-affiliates | |
Interest expense to affiliates | |
| |
Trustees’ and Chief Compliance Officer’s fees | |
Printing and mailing costs | |
Registration and filing fees | |
| |
| |
| |
Less expense reimbursements | |
| |
Net investment income (loss) | |
REALIZED/UNREALIZED GAINS (LOSSES): | |
Net realized gain (loss) on transactions from: | |
Investments in non-affiliates | |
Investments in affiliates | |
In-kind redemptions of investments in non-affiliates (See Note 4) | |
| |
Foreign currency transactions | |
| |
Change in net unrealized appreciation/depreciation on: | |
Investments in non-affiliates | |
Investments in affiliates | |
| |
Foreign currency translations | |
Change in net unrealized appreciation/depreciation | |
Net realized/unrealized gains (losses) | |
Change in net assets resulting from operations | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED
| JPMorgan International Research
Enhanced Equity ETF |
| Year Ended
October 31, 2023 | |
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS: | | |
Net investment income (loss) | | |
| | |
Change in net unrealized appreciation/depreciation | | |
Change in net assets resulting from operations | | |
Total distributions to shareholders | | |
| | |
Change in net assets resulting from capital transactions | | |
| | |
| | |
| | |
| | |
(a)
JPMorgan International Research Enhanced Equity ETF acquired all of the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund ("Predecessor Fund") in a reorganization that occurred as of the close of business on June 10, 2022. Performance and financial history of the Predecessor Fund’s Class R6 Shares have been adopted by JPMorgan International Research Enhanced Equity ETF and will be used going forward. As a result, the information prior to close of business on June 10, 2022, reflects that of the Predecessor Fund's Class R6 Shares. The Predecessor Fund ceased operations as of the date of the reorganization. See Note 1.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| JPMorgan International Research
Enhanced Equity ETF |
| Year Ended October 31, 2023 | |
CAPITAL TRANSACTIONS: (b) | | |
Proceeds from shares issued | | |
| | |
| | |
Change in net assets resulting from capital transactions | | |
| | |
Proceeds from shares issued | | |
| | |
| | |
Change in net assets resulting from Class A capital transactions | | |
| | |
Proceeds from shares issued | | |
| | |
| | |
Change in net assets resulting from Class I capital transactions | | |
Total change in net assets resulting from capital transactions | | |
(a)
JPMorgan International Research Enhanced Equity ETF acquired all of the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund ("Predecessor Fund") in a reorganization that occurred as of the close of business on June 10, 2022. Performance and financial history of the Predecessor Fund’s Class R6 Shares have been adopted by JPMorgan International Research Enhanced Equity ETF and will be used going forward. As a result, the information prior to close of business on June 10, 2022, reflects that of the Predecessor Fund's Class R6 Shares. The Predecessor Fund ceased operations as of the date of the reorganization. See Note 1.
(b)
Reflects reorganization from JPMorgan International Research Enhanced Equity Fund on June 10, 2022. See Note 1.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
STATEMENTS OF CHANGES IN NET ASSETSFOR THE PERIODS INDICATED (continued)
| JPMorgan International Research Enhanced Equity ETF |
| Year Ended October 31, 2023 | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
(a)
JPMorgan International Research Enhanced Equity ETF acquired all of the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund ("Predecessor Fund") in a reorganization that occurred as of the close of business on June 10, 2022. Performance and financial history of the Predecessor Fund’s Class R6 Shares have been adopted by JPMorgan International Research Enhanced Equity ETF and will be used going forward. As a result, the information prior to close of business on June 10, 2022, reflects that of the Predecessor Fund's Class R6 Shares. The Predecessor Fund ceased operations as of the date of the reorganization. See Note 1.
(b)
Reflects reorganization from JPMorgan International Research Enhanced Equity Fund on June 10, 2022. See Note 1.
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
THIS PAGE IS INTENTIONALLY LEFT BLANK
FINANCIAL HIGHLIGHTSFOR THE PERIODS INDICATED
| Per share operating performance (a) |
| | | |
| Net
asset
value
beginning of
period | Net
investment
income
(loss)(b) | Net
realized
and unrealized
gains (losses)
on investments | Total
from
investment
operations | |
JPMorgan International Research Enhanced Equity ETF (e) | | | | | |
Year Ended October 31, 2023 | | | | | |
Year Ended October 31, 2022 | | | | | |
Year Ended October 31, 2021 | | | | | |
Year Ended October 31, 2020 | | | | | |
Year Ended October 31, 2019 | | | | | |
|
| Per share amounts reflect the conversion of the Predecessor Fund into the Fund as of the close of business on June 10, 2022. See Note 1. |
| Calculated based upon average shares outstanding. |
| Includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset values for financial reporting purposes and the returns based upon those net asset values may differ from the net asset values and returns for shareholder transactions. |
| JPMorgan International Research Enhanced Equity ETF acquired all of the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund (“Predecessor Fund”) in a reorganization that occurred as of the close of business on June 10, 2022. Market price returns are calculated using the official closing price of the JPMorgan International Research Enhanced Equity ETF on the listing exchange as of the time that the JPMorgan International Research Enhanced Equity ETF's NAV is calculated. Prior to the JPMorgan International Research Enhanced Equity ETF's listing on June 13, 2022, the NAV performance of the Class R6 Shares of the Predecessor Fund are used as proxy market price returns. |
| JPMorgan International Research Enhanced Equity ETF (the “Fund”) acquired all of the assets and liabilities of the JPMorgan International Research Enhanced Equity Fund (“Predecessor Fund”) in a reorganization that occurred as of the close of business on June 10, 2022. Performance and financial history of the Predecessor Fund’s Class R6 Shares have been adopted by the Fund and will be used going forward. As a result, the financial highlight information reflects that of the Predecessor Fund’s Class R6 Shares for the period November 1, 2018 up through the reorganization. |
| Reflects income from foreign withholding tax claims, including related interest income. Had the Fund not received these proceeds, the net investment income (loss) per share would have remained the same and the net investment income (loss) ratio would have been 2.44%. |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
| |
| | | | | Ratios to average net assets |
Net asset
value,
end of
period | | | Market
price
total
return(d) | | | Net
investment
income (loss) | Expenses
without waivers
and
reimbursements | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
SEE NOTES TO FINANCIAL STATEMENTS.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023
1. Organization
J.P. Morgan Exchange-Traded Fund Trust (the “Trust”) was formed on February 25, 2010, and is governed by a Declaration of Trust as amended and restated February 19, 2014, and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. JPMorgan International Research Enhanced Equity ETF (the "Fund") is a separate diversified series of the Trust covered in this report.
As of the close of business on June 10, 2022 (the "Closing Date"), pursuant to an Agreement and Plan of Reorganization and Liquidation previously approved by the Board of Trustees of the Trust, JPMorgan International Research Enhanced Equity Fund (a mutual fund) (the “Acquired Fund” or “International Research Enhanced Equity Fund”), a series of JPMorgan Trust II, was reorganized (the "Reorganization") into the Fund, a newly created exchange-traded fund. Following the Reorganization, the Acquired Fund’s performance (Class R6 Shares) and financial history were adopted by the Fund. In connection with the Reorganization, each shareholder of the Acquired Fund (except as noted below) received shares of the Fund equal in value to the number of shares of the Acquired Fund they owned on the Closing Date, including a cash payment in lieu of fractional shares of the Fund, which cash payment might have been taxable. Shareholders of the Acquired Fund who did not hold their shares through a brokerage account that could accept shares of the Fund on the Closing Date had their Acquired Fund shares liquidated, and such shareholders received cash equal in value to their Acquired Fund shares, which cash payment might have been taxable. Shareholders of the Acquired Fund who held their shares through a fund direct individual retirement account and did not take action prior to the Reorganization had their Acquired Fund shares exchanged for Morgan Shares of JPMorgan U.S. Government Money Market Fund equal in value to their Acquired Fund shares. The Fund has the same investment adviser, investment objective and fundamental investment policies and substantially similar investment strategies as the Acquired Fund. Effective as of the close of business on the Closing Date, the Acquired Fund ceased operations in connection with the consummation of the Reorganization.
Costs incurred by the Fund and the Acquired Fund associated with the Reorganization (including the legal costs associated with the Reorganization) were borne by the Adviser by waiving fees or reimbursing expenses to offset the costs incurred by the Fund and Acquired Fund associated with the Reorganization, including any brokerage fees and expenses incurred by the Fund and Acquired Fund related to the disposition and acquisition of assets as part of a Reorganization. Brokerage fees and expenses related to the disposition and acquisition of assets (including any disposition to raise cash to pay redemption proceeds) that were incurred in the ordinary course of business were borne by the Fund and the Acquired Fund. The management fee of the Fund is the same as the management fee of the Acquired Fund. The total annual fund operating expenses of the Fund are expected to be lower than the net expenses of each share class of the Acquired Fund after taking into consideration the expense limitation agreement the Adviser has entered into with the Fund for a term ending on June 30, 2025. The Reorganization did not result in the material change to the Acquired Fund's portfolio holdings. There are no material differences in accounting policies of the Acquired Fund as compared to those of the Fund.
The Fund did not purchase or sell securities following the Reorganization for purposes of realigning its investment portfolio. Accordingly, the Reorganization of the Acquired Fund did not affect the Fund’s portfolio turnover ratio for the year ended October 31, 2023.
The investment objective of the Fund is to seek to provide long-term capital appreciation.
J.P. Morgan Investment Management Inc. (“JPMIM”), an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. (“JPMorgan”), acts as adviser (the “Adviser”) and administrator (the “Administrator”) to the Fund.
Shares of the Fund are listed and traded at market price on the NYSE Arca, Inc. Market prices for the Fund’s shares may be different from its net asset value (“NAV”). The Fund issues and redeems its shares on a continuous basis, through JPMorgan Distribution Services, Inc. (the “Distributor” or “JPMDS”), an indirect, wholly-owned subsidiary of JPMorgan, at NAV in large blocks of shares, referred to as “Creation Units". Creation Units are issued and redeemed in exchange for a basket of securities and/or cash. Shares are generally traded in the secondary market in amounts less than a Creation Unit at market prices that change throughout the day. Only individuals or institutions that have entered into an authorized participant agreement with the Distributor may do business directly with the Fund (each, an “Authorized Participant”).
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The Fund is an investment company and, accordingly, follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 — Investment Companies, which is part of U.S. generally accepted accounting principles (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) disclosure of contingent assets and liabilities at the date of the financial statements, and (iii) the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
| J.P. Morgan Exchange-Traded Funds | |
A. Valuation of Investments — Investments are valued in accordance with GAAP and the Fund's valuation policies set forth by, and under the supervision and responsibility of, the Board of Trustees of the Trust (the "Board"), which established the following approach to valuation, as described more fully below: (i) investments for which market quotations are readily available shall be valued at their market value and (ii) all other investments for which market quotations are not readily available shall be valued at their fair value as determined in good faith by the Board.
Under Section 2(a)(41) of the 1940 Act, the Board is required to determine fair value for securities that do not have readily available market quotations. Under SEC Rule 2a-5 (Good Faith Determinations of Fair Value), the Board may designate the performance of these fair valuation determinations to a valuation designee. The Board has designated the Adviser as the “Valuation Designee” to perform fair valuation determinations for the Fund on behalf of the Board subject to appropriate oversight by the Board. The Adviser, as Valuation Designee, leverages the J.P. Morgan Asset Management Americas Valuation Committee (“AVC”) to help oversee and carry out the policies for the valuation of investments held in the Fund. The Adviser, as Valuation Designee, remains responsible for the valuation determinations.
This oversight by the AVC includes monitoring the appropriateness of fair values based on results of ongoing valuation oversight including, but not limited to, consideration of macro or security specific events, market events, and pricing vendor and broker due diligence. The Administrator is responsible for discussing and assessing the potential impacts to the fair values on an ongoing basis, and, at least on a quarterly basis, with the AVC and the Board.
Equities and other exchange-traded instruments are valued at the last sale price or official market closing price on the primary exchange on which the instrument is traded before the NAV of the Fund is calculated on a valuation date. Certain foreign equity instruments are valued by applying international fair value factors provided by approved Pricing Services. The factors seek to adjust the local closing price for movements of local markets post-closing, but prior to the time the NAV is calculated.
Investments in open-end investment companies (“Underlying Funds”) are valued at each Underlying Fund’s NAV per share as of the report date.
Futures contracts are generally valued on the basis of available market quotations.
Valuations reflected in this report are as of the report date. As a result, changes in valuation due to market events and/or issuer-related events after the report date and prior to issuance of the report are not reflected herein.
The various inputs that are used in determining the valuation of the Fund's investments are summarized into the three broad levels listed below.
•
Level 1 — Unadjusted inputs using quoted prices in active markets for identical investments.
•
Level 2 — Other significant observable inputs including, but not limited to, quoted prices for similar investments, inputs other than quoted prices that are observable for investments (such as interest rates, prepayment speeds, credit risk, etc.) or other market corroborated inputs.
•
Level 3 — Significant inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund's assumptions in determining the fair value of investments).
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input, both individually and in the aggregate, that is significant to the fair value measurement. The inputs or methodology used for valuing instruments are not necessarily an indication of the risk associated with investing in those instruments.
The following table represents each valuation input as presented on the Schedule of Portfolio Investments ("SOI"):
| | |
| | Level 2
Other significant
observable inputs | Level 3
Significant
unobservable inputs | |
Investments in Securities | | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
| | |
| | Level 2 Other significant observable inputs | Level 3 Significant unobservable inputs | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
Investment of Cash Collateral from Securities Loaned | | | | |
Total Short-Term Investments | | | | |
Total Investments in Securities | | | | |
Depreciation in Other Financial Instruments | | | | |
| | | | |
B. Restricted Securities — Certain securities held by the Fund may be subject to legal or contractual restrictions on resale. Restricted securities generally are resold in transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). Disposal of these securities may involve time-consuming negotiations and expense. Prompt sale at the current valuation may be difficult and could adversely affect the NAVs of the Fund.
As of October 31, 2023, the Fund had no investments in restricted securities other than securities sold to the Fund under Rule 144A and/or Regulation S under the Securities Act.
C. Securities Lending — The Fund is authorized to engage in securities lending in order to generate additional income. The Fund is able to lend to approved borrowers. Citibank N.A. (“Citibank”) serves as lending agent for the Fund, pursuant to a Securities Lending Agency Agreement (the “Securities Lending Agency Agreement”). Securities loaned are collateralized by cash equal to at least 100% of the market value plus accrued interest on the securities lent, which is invested in the Class IM Shares of the JPMorgan U.S. Government Money Market Fund and the Agency SL Class Shares of the JPMorgan Securities Lending Money Market Fund. The Fund retains the interest earned on cash collateral investments but is required to pay the borrower a rebate for the use of the cash collateral. In cases where the lent security is of high value to borrowers, there may be a negative rebate (i.e., a net payment from the borrower to the Fund). Upon termination of a loan, the Fund is required to return to the borrower an amount equal to the cash collateral, plus any rebate owed to the borrowers. The remaining maturities of the securities lending transactions are considered overnight and continuous. Loans are subject to termination by the Fund or the borrower at any time.
The net income earned on the securities lending (after payment of rebates and Citibank’s fee) is included on the Statement of Operations as Income from securities lending (net). The Fund also receives payments from the borrower during the period of the loan, equivalent to dividends and interest earned on the securities loaned, which are recorded as Dividend or Interest income, respectively, on the Statement of Operations.
Under the Securities Lending Agency Agreement, Citibank marks to market the loaned securities on a daily basis. In the event the cash received from the borrower is less than 102% of the value of the loaned securities (105% for loans of non-U.S. securities), Citibank requests additional cash from the borrower so as to maintain a collateralization level of at least 102% of the value of the loaned securities plus accrued interest (105% for loans of non-U.S. securities), subject to certain de minimis amounts.
The value of securities out on loan is recorded as an asset on the Statement of Assets and Liabilities. The value of the cash collateral received is recorded as a liability on the Statement of Assets and Liabilities and details of collateral investments are disclosed on the SOI.
The Fund bears the risk of loss associated with the collateral investments and is not entitled to additional collateral from the borrower to cover any such losses. To the extent that the value of the collateral investments declines below the amount owed to a borrower, the Fund may incur losses that exceed the amount it earned on lending the security. Upon termination of a loan, the Fund may use leverage (borrow money) to repay the borrower for cash collateral posted if the Adviser does not believe that it is prudent to sell the collateral investments to fund the payment of this liability. Securities lending activity is subject to master netting arrangements.
| J.P. Morgan Exchange-Traded Funds | |
The following table presents the Fund's value of the securities on loan with Citibank, net of amounts available for offset under the master netting arrangements and any related collateral received or posted by the Fund as of October 31, 2023.
| Investment Securities
on Loan, at value,
Presented on the
Statement of Assets
and Liabilities | Cash Collateral
Posted by Borrower* | Net Amount Due
to Counterparty
(not less than zero) |
| | | |
|
| Collateral posted reflects the value of securities on loan and does not include any additional amounts received from the borrower. |
Securities lending also involves counterparty risks, including the risk that the loaned securities may not be returned in a timely manner or at all. Subject to certain conditions, Citibank has agreed to indemnify the Fund from losses resulting from a borrower’s failure to return a loaned security.
JPMIM voluntarily waived management fees charged to the Fund to reduce the impact of the cash collateral investment in the JPMorgan U.S. Government Money Market Fund from 0.13% to 0.06%. For the year ended October 31, 2023, JPMIM waived fees associated with the Fund's investment in the JPMorgan U.S. Government Money Market Fund as follows:
The above waiver is included in the determination of earnings on cash collateral investment and in the calculation of Citibank’s compensation and is included on the Statement of Operations as Income from securities lending (net).
D. Investment Transactions with Affiliates — The Fund invested in Underlying Funds advised by the Adviser. An issuer which is under common control with the Fund may be considered an affiliate. For the purposes of the financial statements, the Fund assumes the issuers listed in the table below to be affiliated issuers. The Underlying Funds’ distributions may be reinvested into such Underlying Funds. Reinvestment amounts are included in the purchases at cost amounts in the table below.
|
For the year ended October 31, 2023 |
| | | | | Change in
Unrealized
Appreciation/
(Depreciation) | | | | Capital Gain
Distributions |
JPMorgan Prime Money Market Fund Class IM Shares, 5.49% (a) (b) | | | | | | | | | |
JPMorgan Securities Lending Money Market Fund Agency SL Class Shares, 5.53% (a) (b) | | | | | | | | | |
JPMorgan U.S. Government Money Market Fund Class IM Shares, 5.29% (a) (b) | | | | | | | | | |
| | | | | | | | | |
|
| Investment in an affiliated fund, which is registered under the Investment Company Act of 1940, as amended, and is advised by J.P. Morgan Investment Management Inc. |
| The rate shown is the current yield as of October 31, 2023. |
| Amount is included on the Statement of Operations as Income from securities lending (net) (after payments of rebates and Citibank’s fee). |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
E. Foreign Currency Translation — The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the prevailing exchange rates of such currencies against the U.S. dollar. The market value of investment securities and other assets and liabilities are translated at the exchange rate as of the valuation date. Purchases and sales of investment securities, income and expenses are translated at the exchange rate prevailing on the respective dates of such transactions.
The Fund does not isolate the effect of changes in foreign exchange rates from changes in market prices on securities held. Accordingly, such changes are included within Change in net unrealized appreciation/depreciation on investments in non-affiliates on the Statement of Operations.
Reported realized foreign currency gains and losses arise from the disposition of foreign currency, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund books on the transaction date and the U.S. dollar equivalent of the amounts actually received or paid. These reported realized foreign currency gains and losses are included in Net realized gain (loss) on foreign currency transactions on the Statement of Operations. Unrealized foreign currency gains and losses arise from changes (due to changes in exchange rates) in the value of foreign currency and other assets and liabilities denominated in foreign currencies, which are held at year end and are included in Change in net unrealized appreciation/depreciation on foreign currency translations on the Statement of Operations.
F. Futures Contracts —The Fund used index futures contracts to gain or reduce exposure to the stock market, or maintain liquidity or minimize transaction costs. The Fund also purchased futures contracts to invest incoming cash in the market or sold futures in response to cash outflows, thereby simulating an invested position in the underlying index while maintaining a cash balance for liquidity.
Futures contracts provide for the delayed delivery of the underlying instrument at a fixed price or are settled for a cash amount based on the change in the value of the underlying instrument at a specific date in the future. Upon entering into a futures contract, the Fund is required to deposit with the broker, cash or securities in an amount equal to a certain percentage of the contract amount, which is referred to as the initial margin deposit. Subsequent payments, referred to as variation margin, are made or received by the Fund periodically and are based on changes in the market value of open futures contracts. Changes in the market value of open futures contracts are recorded as Change in net unrealized appreciation/depreciation on futures contracts on the Statement of Operations. Realized gains or losses, representing the difference between the value of the contract at the time it was opened and the value at the time it was closed, are reported on the Statement of Operations at the closing or expiration of the futures contract. Securities deposited as initial margin are designated on the SOI, while cash deposited, which is considered restricted, is recorded on the Statement of Assets and Liabilities. A receivable from and/or a payable to brokers for the daily variation margin is also recorded on the Statement of Assets and Liabilities.
The use of futures contracts exposes the Fund to equity price risk. The Fund may be subject to the risk that the change in the value of the futures contract may not correlate perfectly with the underlying instrument. Use of long futures contracts subjects the Fund to risk of loss in excess of the amounts shown on the Statement of Assets and Liabilities, up to the notional amount of the futures contracts. Use of short futures contracts subjects the Fund to unlimited risk of loss. The Fund may enter into futures contracts only on exchanges or boards of trade. The exchange or board of trade acts as the counterparty to each futures transaction; therefore, the Fund's credit risk is limited to failure of the exchange or board of trade. Under some circumstances, futures exchanges may establish daily limits on the amount that the price of a futures contract can vary from the previous day’s settlement price, which could effectively prevent liquidation of positions.
The Fund's futures contracts are not subject to master netting arrangements (the right to close out all transactions traded with a counterparty and net amounts owed or due across transactions).
The table below discloses the volume of the Fund's futures contracts activity during the year ended October 31, 2023:
| |
| |
Average Notional Balance Long | |
Ending Notional Balance Long | |
G. Security Transactions and Investment Income — Investment transactions are accounted for on the trade date (the date the order to buy or sell is executed). Securities gains and losses are calculated on a specifically identified cost basis.
Dividend income, net of foreign taxes withheld, if any, is recorded on the ex-dividend date or when a Fund first learns of the dividend.
To the extent such information is publicly available, the Fund records distributions received in excess of income earned from underlying investments as a reduction of cost of investments and/or realized gain. Such amounts are based on estimates if actual amounts are not available and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Fund adjusts the estimated amounts of the components of distributions (and consequently its net investment income) as necessary, once the issuers provide information about the actual composition of the distributions.
| J.P. Morgan Exchange-Traded Funds | |
H. Allocation of Income and Expenses — Expenses directly attributable to the Fund are charged directly to the Fund, while the expenses attributable to more than one fund of the Trust are allocated among the applicable funds.
I. Federal Income Taxes — The Fund is treated as a separate taxable entity for Federal income tax purposes. The Fund's policy is to comply with the provisions of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute to shareholders all of its distributable net investment income and net realized capital gains on investments. Accordingly, no provision for Federal income tax is necessary. Management has reviewed the Fund's tax positions for all open tax years and has determined that as of October 31, 2023, no liability for Federal income tax is required in the Fund's financial statements for net unrecognized tax benefits. However, management’s conclusions may be subject to future review based on changes in, or the interpretation of, the accounting standards or tax laws and regulations. The Fund's Federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
J. Foreign Taxes —The Fund may be subject to foreign taxes on income, gains on investments or currency purchases/repatriation, a portion of which may be recoverable. The Fund will accrue such taxes and recoveries as applicable, based upon its current interpretation of tax rules and regulations that exist in the markets in which it invests. When a capital gains tax is determined to apply, the Fund records an estimated deferred tax liability in an amount that would be payable if the securities were disposed of on the valuation date.
K. Distributions to Shareholders — Distributions from net investment income, if any, are generally declared and paid at least annually. Net realized capital gains, if any, are distributed at least annually. The amount of distributions from net investment income and net realized capital gains is determined in accordance with Federal income tax regulations, which may differ from GAAP. To the extent these “book/tax” differences are permanent in nature (i.e., that they result from other than timing of recognition — “temporary differences”), such amounts are reclassified within the capital accounts based on their Federal tax basis treatment.
The following amounts were reclassified within the capital accounts:
| | Accumulated
undistributed
(distributions in
excess of)
net investment
income | Accumulated
net realized
gains (losses) |
| | | |
The reclassifications for the Fund relate primarily to redemptions in-kind and tax adjustments on certain investments.
3. Fees and Other Transactions with Affiliates
A. Investment Advisory Fee — Pursuant to an Investment Advisory Agreement, the Adviser manages the investments of the Fund and for such services is paid a fee. The investment advisory fee is accrued daily and paid monthly at an annual rate of 0.20% of the Fund's average daily net assets.
The Adviser waived investment advisory fees and/or reimbursed expenses as outlined in Note 3.E.
B. Administration Fee — Pursuant to an Administration Agreement, the Administrator provides certain administration services to the Fund. In consideration of these services, the Administrator receives a fee accrued daily and paid monthly at an annual rate of 0.075% of the first $10 billion of the Fund's average daily net assets, plus 0.050% of the Fund's average daily net assets between $10 billion and $20 billion, plus 0.025% of the Fund's average daily net assets between $20 billion and $25 billion, plus 0.010% of the Fund's average daily net assets in excess of $25 billion. For the year ended October 31, 2023, the effective rate was 0.075% of the Fund's average daily net assets, notwithstanding any fee waivers and/or expense reimbursements.
The Administrator waived administration fees as outlined in Note 3.E.
JPMorgan Chase Bank, N.A. ("JPMCB"), a wholly-owned subsidiary of JPMorgan, serves as the Fund's sub-administrator (the “Sub-administrator”). For its services as Sub-administrator, JPMCB receives a portion of the fees paid to the Administrator.
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
C. Distribution Fees — The Distributor or its agent distributes Creation Units for the Fund on an agency basis. The Distributor does not maintain a secondary market in shares of the Fund. JPMDS receives no fees for their distribution services under the distribution agreement with the Trust (the “Distribution Agreement”). Although the Trust does not pay any fees under the Distribution Agreement, JPMIM pays JPMDS for certain distribution related services.
D. Custodian, Accounting and Transfer Agent Fees — JPMCB provides portfolio custody, accounting and transfer agency services (effective as of the Closing Date) to the Fund. For performing these services, the Fund pays JPMCB transaction and asset-based fees that vary according to the number of transactions and positions, plus out-of-pocket expenses. The amounts paid directly to JPMCB by the Fund for custody and accounting services are included in Custodian and accounting fees on the Statement of Operations. The amounts paid directly to JPMCB by the Fund for transfer agency services are included in Transfer agency fees on the Statement of Operations.
Additionally, Authorized Participants generally pay transaction fees associated with the creation and redemption of Fund shares. These fees are used to offset certain custodian charges incurred by the Fund for these transactions.
Interest income earned on cash balances at the custodian, if any, is included in Interest income from affiliates on the Statement of Operations.
Interest expense paid to the custodian related to cash overdrafts, if any, is included in Interest expense to affiliates on the Statement of Operations.
E. Waivers and Reimbursements — The Adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse the Fund to the extent that total annual operating expenses (excluding acquired fund fees and expenses other than certain money market fund fees as described below, dividend and interest expenses related to short sales, interest, taxes, expenses related to litigation and potential litigation, costs of shareholder meetings, and extraordinary expenses) exceed 0.24% of the Fund’s average daily net assets.
The expense limitation agreement was in effect for the year ended October 31, 2023 and the contractual expense limitation is in place until at least June 30, 2025.
For the year ended October 31, 2023, the service providers waived fees and/or reimbursed expenses for the Fund as follows. None of these parties expect the Fund to repay any such waived fees and/or reimbursed expenses in future years.
| |
| Contractual
Reimbursements |
| |
Additionally, the Fund may invest in one or more money market funds advised by the Adviser (affiliated money market funds). The Adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and expenses of the affiliated money market funds incurred by the Fund because of the Fund’s investment in such affiliated money market funds. To the extent that the Fund engages in securities lending, affiliated money market fund fees and expenses resulting from the Fund's investment of cash received from securities lending borrowers are not included in Total Annual Fund Operating Expenses and therefore, the above waivers do not apply to such investments. None of these parties expect the Fund to repay any such waived fees and/ or reimbursed expenses in future years.
The amount of these waivers resulting from investments in these money market funds for the year ended October 31, 2023 was $180,035.
JPMIM voluntarily agreed to reimburse the Fund for the Trustee Fees paid to one of the interested Trustees. For the year ended October 31, 2023 the amount of this reimbursement was $2,403.
F. Other — Certain officers of the Trust are affiliated with the Adviser, the Administrator and JPMDS. Such officers, with the exception of the Chief Compliance Officer, receive no compensation from the Fund for serving in their respective roles.
The Board designated and appointed a Chief Compliance Officer to the Fund pursuant to Rule 38a-1 under the 1940 Act. The Fund, along with certain other affiliated funds, makes reimbursement payments, on a pro-rata basis, to the Administrator for a portion of the fees associated with the office of the Chief Compliance Officer. Such fees are included in Trustees’ and Chief Compliance Officer’s fees on the Statement of Operations.
The Trust adopted a Trustee Deferred Compensation Plan (the “Plan”) which allows the independent Trustees to defer the receipt of all or a portion of compensation related to performance of their duties as Trustees. The deferred fees are invested in various J.P. Morgan Funds until distribution in accordance with the Plan.
The Securities and Exchange Commission ("SEC") has granted an exemptive order permitting the Fund to engage in principal transactions with J.P. Morgan Securities LLC, an affiliated broker, involving taxable money market instruments, subject to certain conditions.
| J.P. Morgan Exchange-Traded Funds | |
4. Investment Transactions
During the year ended October 31, 2023, purchases and sales of investments (excluding short-term investments) were as follows:
| Purchases
(excluding
U.S. Government) | Sales
(excluding
U.S. Government) |
| | |
For the year ended October 31, 2023, in-kind transactions associated with creations and redemptions were as follows:
During the year ended October 31, 2023, the Fund delivered portfolio securities for the redemption of Fund shares (in-kind redemptions). Cash and portfolio securities were transferred for redemptions at fair value. For financial reporting purposes, the Fund recorded net realized gains and losses in connection with each in-kind redemption transaction.
5. Federal Income Tax Matters
For Federal income tax purposes, the estimated cost and unrealized appreciation (depreciation) in value of investments held at October 31, 2023 were as follows:
| | Gross
Unrealized
Appreciation | Gross
Unrealized
Depreciation | Net Unrealized
Appreciation
(Depreciation) |
| | | | |
The difference between book and tax basis appreciation (depreciation) on investments is primarily attributed to tax adjustments on certain investments and wash sale loss deferrals.
The tax character of distributions paid during the year ended October 31, 2023 was as follows:
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
The tax character of distributions paid during the year ended October 31, 2022 was as follows:
|
| Short-term gain distributions are treated as ordinary income for income tax purposes. |
As of October 31, 2023, the estimated components of net assets (excluding paid-in-capital) on a tax basis were as follows:
| Current
Distributable
Ordinary
Income | Current
Distributable
Long-Term
Capital Gain
(Tax Basis Capital
Loss Carryover) | Unrealized
Appreciation
(Depreciation) |
| | | |
| J.P. Morgan Exchange-Traded Funds | |
NOTES TO FINANCIAL STATEMENTSAS OF October 31, 2023 (continued)
The cumulative timing differences primarily consist of tax adjustments on certain investments and wash sale loss deferrals.
At October 31, 2023, the Fund had net capital loss carryforwards, which are available to offset future realized gains:
| Capital Loss Carryforward Character |
| | |
| | |
6. Capital Share Transactions
The Trust issues and redeems shares of the Fund only in Creation Units through the Distributor at NAV. Capital shares transactions detail can be found in the Statement of Changes in Net Assets.
Shares of the Fund may only be purchased or redeemed by Authorized Participants. Such Authorized Participants may from time to time hold, of record or beneficially, a substantial percentage of the shares outstanding and act as executing or clearing broker for investment transactions on behalf of the Fund. An Authorized Participant is either (1) a “Participating Party” or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation (“NSCC”); or (2) a DTC Participant; which, in either case, must have executed an agreement with the Distributor.
Creation Units of a Fund may be created in advance of receipt by the Trust of all or a portion of the applicable basket of equity securities and other instruments (“Deposit Instruments”) and cash as described in the Fund's registration statement. In these instances, the initial Deposit Instruments and cash must be deposited in an amount equal to the sum of the cash amount, plus at least 105% for the Fund of the market value of undelivered Deposit Instruments. A transaction fee may be imposed to offset transfer and other transaction costs associated with the purchase or redemption of Creation Units.
7. Borrowings
Effective November 1, 2022, the Fund relies upon an exemptive order granted by the SEC (the “Order”) permitting the establishment and operation of an Interfund Lending Facility (the “Facility”). The Facility allows the Fund to directly lend and borrow money to or from any other fund relying upon the Order at rates beneficial to both the borrowing and lending funds. Advances under the Facility are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to the Fund's borrowing restrictions. The interfund loan rate is determined, as specified in the Order, by averaging the current repurchase agreement rate and the current bank loan rate. The Order was granted to JPMorgan Trust II and may be relied upon by the Fund because the Fund and the series of JPMorgan Trust II are all investment companies in the same “group of investment companies” (as defined in Section 12(d)(1)(G) of the 1940 Act).
The Fund had no borrowings outstanding from another fund, or loans outstanding to another fund, during the year ended October 31, 2023.
The Trust and JPMCB have entered into a financing arrangement. Under this arrangement, JPMCB provides an unsecured, uncommitted credit facility in the aggregate amount of $100 million to certain of the J.P. Morgan Funds, including the Fund. Advances under the arrangement are taken primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities, and are subject to the Fund's borrowing restrictions. Interest on borrowings is payable at a rate determined by JPMCB at the time of borrowing. This agreement has been extended until October 29, 2024.
The Fund had no borrowings outstanding from the unsecured, uncommitted credit facility during the year ended October 31, 2023.
Effective August 8, 2023, the Trust, along with certain other trusts for J.P. Morgan Funds (“Borrowers”), has entered into an existing joint syndicated senior unsecured revolving credit facility totaling $1.5 billion (“Credit Facility”) with various lenders and The Bank of New York Mellon, as administrative agent for the lenders. Although the Trust is effectively part of the Credit Facility as of August 8, 2023, it is not eligible to draw on the Credit Facility, and will not incur costs associated with being a part of the Credit Facility, until on or about May 28, 2024.
This Credit Facility provides a source of funds to the Borrowers for temporary and emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Under the terms of the Credit Facility, a borrowing fund must have a minimum of $25 million in adjusted net asset value and not exceed certain adjusted net asset coverage ratios prior to and during the time in which any borrowings are outstanding. If a fund does not comply with the aforementioned requirements, the fund must remediate within three business days with respect to the $25 million minimum adjusted net asset value or within one business day with respect to certain asset coverage ratios or the administrative agent at the request of, or with the consent of, the lenders may terminate the Credit Facility and declare any outstanding borrowings to be due and payable immediately.
Interest associated with any borrowing under the Credit Facility is charged to the borrowing fund at a rate of interest equal to 1.00% (the "Applicable Margin"), plus the greater of the federal funds effective rate or the one-month Adjusted Secured Overnight Financing Rate ("SOFR"). Effective August 8, 2023, the Credit Facility has been amended and restated for a term of 364 days, unless extended.
| J.P. Morgan Exchange-Traded Funds | |
The Fund did not utilize the Credit Facility during the year ended October 31, 2023.
8. Risks, Concentrations and Indemnifications
In the normal course of business, the Fund enters into contracts that contain a variety of representations which provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown. The amount of exposure would depend on future claims that may be brought against the Fund. However, based on experience, the Fund expects the risk of loss to be remote.
As of October 31, 2023, J.P. Morgan Investor Funds and JPMorgan SmartRetirement Funds, which are affiliated funds of funds, each owned in the aggregate, shares representing more than 10% of the net assets of the Fund as follows:
| | JPMorgan
SmartRetirement
Funds |
| | |
Significant shareholder transactions by the Adviser may impact the Fund's performance and liquidity.
The Fund may have elements of risk not typically associated with investments in the United States of America due to concentrated investments in a limited number of foreign countries or regions, which may vary throughout the year. Such concentrations may subject the Fund to additional risks resulting from political or economic conditions in such countries or regions and the possible imposition of adverse governmental laws or currency exchange restrictions could cause the securities and their markets to be less liquid and their prices to be more volatile than those of comparable U.S. securities.
As of October 31, 2023, the Fund had non-U.S. country allocations representing greater than 10% of total investments (excluding investment
of cash collateral from securities loaned) as follows:
Disruptions to creations and redemptions, the existence of significant market volatility or potential lack of an active trading market for the shares (including through a trading halt), as well as other factors, may result in shares trading significantly above (at a premium) or below (at a discount) to the NAV or to the intraday value of the Fund's holdings. During such periods, investors may incur significant losses if shares are sold.
The Fund is subject to infectious disease epidemics/pandemics risk. For example, the outbreak of COVID-19 negatively affected economies, markets and individual companies throughout the world, including those in which the Fund invests. The effects of any future pandemic or other global event to business and market conditions may have a significant negative impact on the performance of the Fund's investments, increase the Fund's volatility, exacerbate other pre-existing political, social and economic risks to the Fund and negatively impact broad segments of businesses and populations. In addition, governments, their regulatory agencies, or self-regulatory organizations have taken or may take actions in response to a pandemic or other global event that affect the instruments in which the Fund invests, or the issuers of such instruments, in ways that could have a significant negative impact on the Fund's investment performance. The ultimate impact of any pandemic or other global event and the extent to which the associated conditions and governmental responses impact the Fund will also depend on future developments, which are highly uncertain, difficult to accurately predict and subject to frequent changes.
| J.P. Morgan Exchange-Traded Funds | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of J.P. Morgan Exchange-Traded Fund Trust and Shareholders of JPMorgan International Research Enhanced Equity ETF
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of portfolio investments, of JPMorgan International Research Enhanced Equity ETF (one of the funds constituting J.P. Morgan Exchange-Traded Fund Trust, referred to hereafter as the “Fund”) as of October 31, 2023, the related statement of operations for the year ended October 31, 2023, the statement of changes in net assets for each of the two years in the period ended October 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended October 31, 2023 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of October 31, 2023, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended October 31, 2023 and the financial highlights for each of the five years in the period ended October 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of October 31, 2023 by correspondence with the custodian, transfer agent and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
December 21, 2023
We have served as the auditor of one or more investment companies in the JPMorgan Funds complex since 1993.
| J.P. Morgan Exchange-Traded Funds | |
The Fund's Statement of Additional Information includes additional information about the Fund's Trustees and is available, without charge, upon request by calling 1-844-457-6383 or on the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Name (Year of Birth);
Positions With
the Funds (1) | Principal Occupation
During Past 5 Years | Number of
Funds in Fund
Complex Overseen
by Trustee (2) | Other Directorships Held
During the Past 5 Years |
| |
John F. Finn (1947); Chair
since 2020; Trustee since 1998. | Chairman, Gardner, Inc. (supply chain management company serving industrial and consumer markets) (serving in various roles 1974-present). | | Director, Greif, Inc. (GEF) (industrial package products and services) (2007-present); Trustee, Columbus Association for the Performing Arts (1988-present). |
Stephen P. Fisher (1959);
Trustee since 2018. | Retired; Chairman and Chief Executive Officer, NYLIFE Distributors LLC (registered broker-dealer) (serving in various roles 2008-2013); Chairman, NYLIM Service Company LLC (transfer agent) (2008-2017); New York Life Investment Management LLC (registered investment adviser) (serving in various roles 2005-2017); Chairman, IndexIQ Advisors LLC (registered investment adviser for ETFs) (2014-2017); President, MainStay VP Funds Trust (2007-2017), MainStay DefinedTerm Municipal Opportunities Fund (2011-2017) and MainStay Funds Trust (2007-2017) (registered investment companies). | | Honors Program Advisory Board Member, The Zicklin School of Business, Baruch College, The City University of New York (2017-present). |
Gary L. French (1951);
Trustee since 2014. | Real Estate Investor (2011-2020); Investment management industry Consultant and Expert Witness (2011-present); Senior Consultant for The Regulatory Fundamentals Group LLC (2011-2017). | | Independent Trustee, The China Fund, Inc. (2013-2019); Exchange Traded Concepts Trust II (2012-2014); Exchange Traded Concepts Trust I (2011-2014). |
Kathleen M. Gallagher (1958);
Trustee since 2018. | Retired; Chief Investment Officer — Benefit Plans, Ford Motor Company (serving in various roles 1985-2016). | | Non- Executive Director, Legal & General Investment Management (Holdings) (2018-present); Non-Executive Director, Legal & General Investment Management America (U.S. Holdings) (financial services and insurance) (2017-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017-present); Member, Client Advisory Council, Financial Engines, LLC (registered investment adviser) (2011-2016); Director, Ford Pension Funds Investment Management Ltd. (2007-2016). |
Robert J. Grassi (1957);
Trustee since 2014. | Sole Proprietor, Academy Hills Advisors LLC (2012-present); Pension Director, Corning Incorporated (2002-2012). | | |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Frankie D. Hughes (1952);
Trustee since 2008. | President, Ashland Hughes Properties (property management) (2014-present); President and Chief Investment Officer, Hughes Capital Management, Inc. (fixed income asset management) (1993-2014). | | |
Raymond Kanner (1953);
Trustee since 2017. | Retired; Managing Director and Chief Investment Officer, IBM Retirement Funds (2007-2016). | | Advisory Board Member, Penso Advisors, LLC (2020-present); Advisory Board Member, Los Angeles Capital (2018-present); Advisory Board Member, State Street Global Advisors Total Portfolio Solutions (2017- present); Acting Executive Director, Committee on Investment of Employee Benefit Assets (CIEBA) (2016-2017); Advisory Board Member, Betterment for Business (robo advisor) (2016- 2017); Advisory Board Member, BlueStar Indexes (index creator) (2013-2017); Director, Emerging Markets Growth Fund (registered investment company) (1997-2016); Member, Russell Index Client Advisory Board (2001-2015). |
Thomas P. Lemke (1954);
Trustee since 2014. | | | (1) Independent Trustee of Advisors’ Inner Circle III fund platform, consisting of the following: (i) the Advisors’ Inner Circle Fund III, (ii) the Gallery Trust, (iii) the Schroder Series Trust, (iv) the Delaware Wilshire Private Markets Fund (since 2020), (v) Chiron Capital Allocation Fund Ltd., and (vi) formerly the Winton Diversified Opportunities Fund (2014-2018); and (2) Independent Trustee of the Symmetry Panoramic Trust (since 2018). |
Lawrence R. Maffia (1950);
Trustee since 2014. | Retired; Director and President, ICI Mutual Insurance Company (2006-2013). | | Director, ICI Mutual Insurance Company (1999-2013). |
Mary E. Martinez (1960); Vice
Chair since 2021; Trustee since 2013. | Associate, Special Properties, a Christie’s International Real Estate Affiliate (2010-present); Managing Director, Bank of America (asset management) (2007-2008); Chief Operating Officer, U.S. Trust Asset Management, U.S. Trust Company (asset management) (2003-2007); President, Excelsior Funds (registered investment companies) (2004-2005). | | |
Marilyn McCoy (1948);
Trustee since 1999. | Retired; Vice President of Administration and Planning, Northwestern University (1985-2023). | | |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth); Positions With the Funds (1) | Principal Occupation During Past 5 Years | Number of Funds in Fund Complex Overseen by Trustee (2) | Other Directorships Held During the Past 5 Years |
Independent Trustees (continued) | |
Dr. Robert A. Oden, Jr. (1946); Trustee
since 1997. | Retired; President, Carleton College (2002-2010); President, Kenyon College (1995-2002). | | Trustee, The Coldwater Conservation Fund (2017-present); Trustee, American Museum of Fly Fishing (2013-present); Trustee and Vice Chair, Trout Unlimited (2017-2021); Trustee, Dartmouth- Hitchcock Medical Center (2011-2020). |
Marian U. Pardo* (1946);
Trustee since 2013. | Managing Director and Founder, Virtual Capital Management LLC (investment consulting) (2007-present); Managing Director, Credit Suisse Asset Management (portfolio manager) (2003-2006). | | Board Chair and Member, Board of Governors, Columbus Citizens Foundation (not-for-profit supporting philanthropic and cultural programs) (2006-present). |
Emily A. Youssouf (1951);
Trustee since 2014. | Adjunct Professor (2011-present) and Clinical Professor (2009-2011), NYU Schack Institute of Real Estate; Board Member and Member of the Audit Committee (2013–present), Chair of Finance Committee (2019-present), Member of Related Parties Committee (2013-2018) and Member of the Enterprise Risk Committee (2015-2018), PennyMac Financial Services, Inc.; Board Member (2005-2018), Chair of Capital Committee (2006-2016), Chair of Audit Committee (2005-2018), Member of Finance Committee (2005-2018) and Chair of IT Committee (2016-2018), NYC Health and Hospitals Corporation. | | Trustee, NYC School Construction Authority (2009-present); Board Member, NYS Job Development Authority (2008-present); Trustee and Chair of the Audit Committee of the Transit Center Foundation (2015-2019). |
| |
Robert F. Deutsch** (1957);
Trustee since 2014. | Retired; Head of ETF Business for JPMorgan Asset Management (2013-2017); Head of Global Liquidity Business for JPMorgan Asset Management (2003-2013). | | Treasurer and Director of the JUST Capital Foundation (2017-present). |
Nina O. Shenker** (1957);
Trustee since 2022. | Vice Chair (2017-2021), General Counsel and Managing Director (2008-2016), Associate General Counsel and Managing Director (2004-2008), J.P. Morgan Asset & Wealth Management. | | Director and Member of Legal and Human Resources Subcommittees, American Jewish Joint Distribution Committee (2018-present). |
|
| The year shown is the first year in which a Trustee became a member of any of the following: the JPMorgan Mutual Fund Board, the JPMorgan ETF Board, the heritage J.P. Morgan Funds or the heritage One Group Mutual Funds. Trustees serve an indefinite term, until resignation, retirement, removal or death. The Board's current retirement policy sets retirement at the end of the calendar year in which the Trustee attains the age of 75, provided that any Board member who was a member of the JPMorgan Mutual Fund Board prior to January 1, 2022 and was born prior to January 1, 1950 shall retire from the Board at the end of the calendar year in which the Trustee attains the age of 78. |
| A Fund Complex means two or more registered investment companies that hold themselves out to investors as related companies for purposes of investment and investor services or have a common investment adviser or have an investment adviser that is an affiliated person of the investment adviser of any of the other registered investment companies. The J.P. Morgan Funds Complex for which the Board of Trustees serves currently includes nine registered investment companies (170 J.P. Morgan Funds). |
| In connection with prior employment with JPMorgan Chase, Ms. Pardo was the recipient of non-qualified pension plan payments from JPMorgan Chase in the amount of approximately $2,055 per month, which she irrevocably waived effective January 1, 2013, and deferred compensation payments from JPMorgan Chase in the amount of approximately $7,294 per year, which ended in January 2013. In addition, Ms. Pardo receives payments from a fully-funded qualified plan, which is not an obligation of JPMorgan Chase. |
| J.P. Morgan Exchange-Traded Funds | |
TRUSTEES(Unaudited) (continued)
| Designation as an “Interested Trustee” is based on prior employment by the Adviser or an affiliate of the Adviser or interests in a control person of the Adviser. |
| The contact address for each of the Trustees is 277 Park Avenue, New York, NY 10172. |
| J.P. Morgan Exchange-Traded Funds | |
Name (Year of Birth),
Positions Held with
the Trust (Since) | Principal Occupations During Past 5 Years |
Brian S. Shlissel (1964),
President and Principal Executive
Officer (2021) | Managing Director and Chief Administrative Officer for J.P. Morgan pooled vehicles, J.P. Morgan Investment Management Inc. since 2014. |
Timothy J. Clemens (1975),
Treasurer and Principal Financial
Officer (2020) | Managing Director, J.P. Morgan Investment Management Inc. Mr. Clemens has been with J.P. Morgan Investment Management Inc. since 2013. |
Gregory S. Samuels (1980),
Secretary (2022) (formerly Assistant
Secretary 2014-2022) | Managing Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Samuels has been with JPMorgan Chase & Co. since 2010. |
Stephen M. Ungerman (1953),
Chief Compliance Officer (2014) | Managing Director, JPMorgan Chase & Co. Mr. Ungerman has been with JPMorgan Chase & Co. since 2000. |
Kiesha Astwood-Smith (1973),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Senior Director and Counsel, Equitable Financial Life Insurance Company (formerly, AXA Equitable Life Insurance Company) from September 2015 through June 2021. |
Matthew Beck (1988),
Assistant Secretary (2021)* | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since May 2021; Senior Legal Counsel, Ultimus Fund Solutions from May 2018 through May 2021; General Counsel, The Nottingham Company from April 2014 through May 2018. |
Elizabeth A. Davin (1964),
Assistant Secretary (2022)
(formerly Secretary 2018-2022)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Davin has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 2004. |
Jessica K. Ditullio (1962),
Assistant Secretary (2014)* | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Ms. Ditullio has been with JPMorgan Chase & Co. (formerly Bank One Corporation) since 1990. |
Anthony Geron (1971),
Assistant Secretary (2019) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since September 2018; Lead Director and Counsel, AXA Equitable Life Insurance Company from 2015 to 2018 and Senior Director and Counsel, AXA Equitable Life Insurance Company from 2014 to 2015. |
Carmine Lekstutis (1980),
Assistant Secretary (2014) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Lekstutis has been with JPMorgan Chase & Co. since 2011. |
Max Vogel (1990),
Assistant Secretary (2021) | Vice President and Assistant General Counsel, JPMorgan Chase & Co. since June 2021; Associate, Proskauer Rose LLP (law firm) from March 2017 to June 2021. |
Zachary E. Vonnegut-Gabovitch
(1986),
Assistant Secretary (2017) | Executive Director and Assistant General Counsel, JPMorgan Chase & Co. Mr. Vonnegut-Gabovitch has been with JPMorgan Chase & Co. since September 2016. |
Frederick J. Cavaliere (1978),
Assistant Treasurer (2015)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Cavaliere has been with JPMorgan Chase & Co. since May 2006. |
Michael M. D’Ambrosio (1969),
Assistant Treasurer (2014) | Managing Director, J.P. Morgan Investment Management Inc. Mr. D’Ambrosio has been with J.P. Morgan Investment Management Inc. since 2012. |
Aleksandr Fleytekh (1972),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Mr. Fleytekh has been with J.P. Morgan Investment Management Inc. since February 2012. |
Shannon Gaines (1977),
Assistant Treasurer (2019)* | Executive Director, J.P. Morgan Investment Management Inc. Mr. Gaines has been with J.P. Morgan Investment Management Inc. since January 2014. |
Jeffrey D. House (1972),
Assistant Treasurer (2023)* | Vice President, J.P. Morgan Investment Management Inc. Mr. House has been with J.P. Morgan Investment Management Inc. since July 2006. |
Michael Mannarino (1985),
Assistant Treasurer (2023) | Vice President, J.P. Morgan Investment Management Inc. Mr. Mannarino has been with J.P. Morgan Investment Management Inc. since 2014. |
| J.P. Morgan Exchange-Traded Funds | |
OFFICERS(Unaudited) (continued)
Nektarios E. Manolakakis (1972),
Assistant Treasurer (2020) | Executive Director, J.P. Morgan Investment Management Inc. since February 2021, formerly Vice President, J.P. Morgan Investment Management Inc. since 2014; Vice President, J.P. Morgan Corporate & Investment Bank 2010-2014. |
Todd McEwen (1981),
Assistant Treasurer (2020)* | Vice President, J.P. Morgan Investment Management Inc. Mr. McEwen has been with J.P. Morgan Investment Management Inc. since 2010. |
Joseph Parascondola (1963),
Assistant Treasurer (2023)** | Executive Director, J.P. Morgan Investment Management Inc. Mr. Parascondola has been with J.P. Morgan Investment Management Inc. since 2006. |
Gillian I. Sands (1969),
Assistant Treasurer (2023) | Executive Director, J.P. Morgan Investment Management Inc. Ms. Sands has been with J.P. Morgan Investment Management Inc. since September 2012. |
|
The contact address for each of the officers, unless otherwise noted, is 277 Park Avenue, New York, NY 10172. |
| The contact address for the officer is 1111 Polaris Parkway, Columbus, OH 43240. |
| The contact address for the officer is 575 Washington Boulevard, Jersey City, NJ 07310. |
| J.P. Morgan Exchange-Traded Funds | |
SCHEDULE OF SHAREHOLDER EXPENSES(Unaudited)
Hypothetical $1,000 Investment
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions on your purchase and sales of Fund shares and (2) ongoing costs, primarily management fees. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these ongoing costs with the ongoing costs of investing in other funds. The examples assume that you had a $1,000 investment at the beginning of the reporting period, May 1, 2023, and continued to hold your shares at the end of the reporting period, October 31, 2023.
Actual Expenses
For the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of the Fund under the heading titled “Expenses Paid During the
Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the Fund in the table below provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The examples also assume all dividends and distributions have been reinvested. The examples do not take into account brokerage commissions that you pay when purchasing or selling shares of the Fund.
| Beginning Account Value May 1, 2023 | Ending Account Value October 31, 2023 | | |
JPMorgan International Research Enhanced Equity ETF | | | | |
| | | | |
| | | | |
|
| Expenses are equal to Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
| J.P. Morgan Exchange-Traded Funds | |
LIQUIDITY RISK MANAGEMENT PROGRAM(Unaudited)
The JPMorgan International Research Enhanced Equity ETF (the “Fund”) has adopted the J.P. Morgan Funds and J.P. Morgan Exchange-Traded Funds Amended and Restated Liquidity Risk Management Program (the “Program”) under Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”). The Program seeks to assess, manage and review each of the applicable J.P. Morgan Exchange-Traded Funds (each a “Fund”; and collectively, the “Funds”) Liquidity Risk. “Liquidity Risk” is defined as the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund. Pursuant to an exemptive order (the “Exemptive Order”) from the Securities and Exchange Commission, the Program permits the Funds to use liquidity definitions and classification methodologies that differ from the requirements under the Liquidity Rule in some respects. Among other things, the Liquidity Rule requires that a written report be provided to the Board of Trustees (the “Board”) on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including the operation of any Highly Liquid Investment Minimum (“HLIM”), where applicable, and any material changes to the Program.
The Board has appointed J.P. Morgan Asset Management’s Liquidity Risk Forum to be the program administrator for the Program (the “Program Administrator”). In addition to regular reporting at each of its quarterly meetings, on February 7, 2023, the Board reviewed the Program Administrator’s annual written report (the “Report”) concerning the operation of the Program for the period from January 1, 2022 through December 31, 2022 (the “Program Reporting Period”). The Report addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including, where applicable, the operation of the Fund’s HLIM. There were no material changes to the Program during the Program Reporting Period.
The Report summarized the operation of the Program and the information and factors considered by the Program Administrator in assessing whether the Program has been adequately and effectively implemented with respect to the Fund. Such information and factors included, among other things: (1) the effectiveness of the Program with respect to the identification of the Fund that qualifies as an “In-Kind ETF” (as defined in the Liquidity Rule); (2) the liquidity risk framework used to assess, manage, and periodically review the Fund’s Liquidity Risk and the results of this assessment; (3) the methodology and inputs for classifying the investments of the Fund (other than an In-Kind ETF) into one of the required liquidity categories that reflect an estimate of the liquidity of those investments under current market conditions (and, for In-Kind ETFs, the methodology and inputs for determining whether any investments should be classified as “Illiquid Investments” (as defined or modified under the Program)); (4) whether the Fund (other than an In-Kind ETF) invested primarily in “Highly Liquid Investments” (as defined or modified under the Program), as well as whether an HLIM should be established for the Fund (other than an In-Kind ETF) and the procedures for monitoring any HLIM; (5) whether the Fund invested more than 15% of its assets in “Illiquid Investments” and the procedures for monitoring for this limit; and (6) specific liquidity events arising during the Program Reporting Period. The Report further summarized the conditions of the Exemptive Order and whether all applicable Funds were in compliance with the terms of the Exemptive Order.
Based on this review, the Report concluded that: (1) the Program continues to be reasonably designed to effectively assess and manage the Fund’s Liquidity Risk; and (2) the Program has been adequately and effectively implemented with respect to the Fund during the Program Reporting Period.
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT(Unaudited)
The Board of Trustees (the “Board” or the “Trustees”) has established various standing committees composed of Trustees with diverse backgrounds, to which the Board has assigned specific subject matter responsibilities to further enhance the effectiveness of the Board’s oversight and decision making. The Board and its investment committees (Money Market and Alternative Products Committee, Equity Committee, and Fixed Income Committee) met regularly throughout the year and, at each meeting, considered factors that are relevant to their annual consideration of the continuation of the investment advisory agreements. The Board also met for the specific purpose of considering investment advisory agreement annual renewals. The Board held meetings June 20-21, 2023 and August 8-10, 2023, at which the Trustees considered the continuation of the investment advisory agreement for the Fund whose annual report is contained herein (the “Advisory Agreement”). At the June meeting, the Board’s investment committees met to review and consider performance, expense and related information for the J.P. Morgan Funds. Each investment committee reported to the full Board, which then considered each investment committee’s preliminary findings. At the August meeting, the Trustees continued their review and consideration. The Trustees, including a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940) of any party to the Advisory Agreement or any of their affiliates, approved the continuation of the Advisory Agreement on August 10, 2023.
As part of their review of the Advisory Agreement, the Trustees considered and reviewed performance and other information about the Fund received from J.P. Morgan Investment Management Inc. (the “Adviser”). This information included the Fund’s performance as compared to the performance of its peers and benchmark, and analyses by the Adviser of the Fund’s performance. In addition, at each of their regular meetings throughout the year, the Trustees considered reports on the performance of certain J.P. Morgan Funds provided by an independent investment consulting firm (the “independent consultant”). In addition, in preparation for the June and August meetings, the Trustees requested, received and evaluated extensive materials from the Adviser, including performance and expense information compiled by Broadridge, using data from Lipper Inc. and/or Morningstar Inc., independent providers of investment company data (together, “Broadridge”). The Trustees’ independent consultant also provided additional quantitative and statistical analyses of certain Funds, including risk and performance return assessments as compared to the Fund’s objectives, benchmarks, and peers. Before voting on the Advisory Agreement, the Trustees reviewed the Advisory Agreement with representatives of the Adviser, counsel to the Fund, and independent legal counsel to the Trustees, and received a memorandum from independent legal counsel to the Trustees discussing the legal standards for
their consideration of the Advisory Agreement. The Trustees also discussed the Advisory Agreement with independent legal counsel in executive sessions at which no representatives of the Adviser were present.
A summary of the material factors evaluated by the Trustees in determining whether to approve the Advisory Agreement is provided below. Each Trustee attributed different weights to the various factors and no factor alone was considered determinative. The Trustees considered information provided with respect to the Fund throughout the year, as well as materials furnished specifically in connection with the annual review process. From year to year, the Trustees consider and place emphasis on relevant information in light of changing circumstances in market and economic conditions.
After considering and weighing the factors and information they had received, the Trustees found that the compensation to be received by the Adviser from the Fund under the Advisory Agreement was fair and reasonable under the circumstances, and determined that the continuance of the Advisory Agreement was in the best interests of the Fund and its shareholders.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent and quality of services provided to the Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as the materials furnished specifically in connection with this annual review process. Among other things, the Trustees considered:
• The background and experience of the Adviser’s senior management and investment personnel, including personnel changes, if any;
• The qualifications, backgrounds and responsibilities of the portfolio management team primarily responsible for the day-to-day management of the Fund, including personnel changes, if any;
• The investment strategy for the Fund, and the infrastructure supporting the portfolio management teams;
• Information about the structure and distribution strategy for the Fund and how it fits within the Adviser’s other fund offerings within the J.P. Morgan Funds complex;
• The administration services provided by the Adviser in its role as Administrator;
• Their knowledge of the nature and quality of the services provided by the Adviser and its affiliates gained from their experience as Trustees of the Fund and in the financial industry generally;
| J.P. Morgan Exchange-Traded Funds | |
BOARD APPROVAL OF INVESTMENT ADVISORY AGREEMENT(Unaudited) (continued)
• The overall reputation and capabilities of the Adviser and its affiliates;
• The commitment of the Adviser to provide high quality service to the Fund;
• Their overall confidence in the Adviser’s integrity; and
• The Adviser’s responsiveness to requests for additional information, questions or concerns raised by them, including the Adviser’s willingness to consider and implement organizational and operational changes designed to improve investment results and the services provided to the Fund.
Based upon these considerations and other factors, the Trustees concluded that they were satisfied with the nature, extent and quality of the services provided to the Fund by the Adviser.
Costs of Services Provided and Profitability to the Adviser and its Affiliates
The Trustees received and considered information regarding the profitability to the Adviser and its affiliates from providing services to the Fund. The Trustees reviewed and discussed this information. The Trustees recognized that this information is not audited and represents the Adviser’s determination of its and its affiliates’ revenues from the contractual services provided to the Fund, less expenses of providing such services. Expenses include direct and indirect costs and are calculated using an allocation methodology developed by the Adviser and reviewed with the Board. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the fact that publicly-traded fund managers’ operating profits and net income are net of distribution and marketing expenses. Based upon their review, and taking into consideration the factors noted above, the Trustees concluded that the profitability to the Adviser under the Advisory Agreement was not unreasonable in light of the services and benefits provided to the Fund.
The Trustees also considered that the Adviser earns fees from the Fund for providing administration services. These fees were shown separately in the profitability analysis presented to the Trustees. The Trustees also considered the fees earned by JPMorgan Chase Bank, N.A. (“JPMCB”), an affiliate of the Adviser, for custody, fund accounting and other related services for the Fund, and the profitability of the arrangements to JPMCB.
Fall-Out Benefits
The Trustees reviewed information regarding potential “fall-out” or ancillary benefits received by the Adviser and its affiliates as a result of their relationship with the Fund. The Trustees considered that the J.P. Morgan Funds' operating accounts are held at JPMCB, which, as a result, will receive float benefits for certain J.P. Morgan Funds, as applicable. The Trustees also noted that the Adviser supports a diverse set of products and services, which benefits the Adviser by allowing it to leverage its infrastructure to serve additional clients, including benefits that may be received by the Adviser and its affiliates in connection with the Fund’s potential investments in other funds advised by the Adviser. The Trustees also reviewed the Adviser’s allocation of fund brokerage for the J.P. Morgan Funds complex, including allocations to brokers who provide research to the Adviser, as well as the Adviser’s use of affiliates to provide other services and the benefits to such affiliates of doing so. The Trustees also considered the benefit to the Adviser and its affiliates from allocating client assets to the Fund.
Economies of Scale
The Trustees considered the extent to which the Fund may benefit from potential economies of scale. The Trustees considered that there may not be a direct relationship between economies of scale realized by the Fund and those realized by the Adviser as assets increase. The Trustees considered the extent to which the Fund was priced to scale and whether it would be appropriate to add advisory fee breakpoints, but noted that the Fund has implemented a contractual expense limitation and fee waiver (“Fee Cap”) which allow the Fund’s shareholders to share potential economies of scale from the Fund’s inception, and that the fees remain fair and reasonable relative to peer funds. The Trustees considered the benefits to the Fund of the use of an affiliated distributor and custodian, including the ability to rely on existing infrastructure supporting distribution, custodial and transfer agent services and the ability to negotiate competitive fees for the Fund. The Trustees further considered the Adviser's and JPMDS's ongoing investments in their business in support of the Fund, including the Adviser's and/or JPMDS's investments in trading systems, technology (including improvements to the J.P. Morgan Funds’ website, and cybersecurity improvements), retention of key talent, and regulatory support enhancements. The Trustees concluded that the current fee structure for the Fund, including the Fee Cap that the Adviser has in place that serves to limit the overall net expense ratio of the Fund at a competitive level, was reasonable. The Trustees concluded that the Fund’s shareholders received the benefits of potential economies of scale through the Fee Cap and from the Adviser’s reinvestment in its operations to serve the Fund and its shareholders. The
| J.P. Morgan Exchange-Traded Funds | |
Trustees noted that the Adviser’s reinvestment ensures sufficient resources in terms of personnel and infrastructure to support the Fund.
Fees Relative to Adviser’s Other Clients
The Trustees received and considered information about the nature and extent of investment advisory services and fee rates offered to other clients of the Adviser, including, to the extent applicable, institutional separate accounts, collective investment trusts, other registered investment companies and/or private funds sub-advised by the Adviser, for investment management styles substantially similar to that of the Fund. The Trustees considered the complexity of investment management for registered investment companies relative to the Adviser’s other clients and noted differences, as applicable, in the fee structure and the regulatory, legal and other risks and responsibilities of providing services to the different clients. The Trustees considered that serving as an adviser to a registered investment company involves greater responsibilities and risks than acting as a sub-adviser and observed that sub-advisory fees may be lower than those charged by the Adviser to the Fund. The Trustees also noted that the adviser, not the applicable registered investment company, typically bears the sub-advisory fee and that many responsibilities related to the advisory function are typically retained by the primary adviser. The Trustees concluded that the fee rates charged to the Fund in comparison to those charged to the Adviser’s other clients were reasonable.
Investment Performance
The Trustees receive and consider information about the Fund’s performance throughout the year. In addition, the Trustees received and considered absolute and/or relative performance information for the Fund in a report prepared by Broadridge. The Trustees considered the total return performance information, which included the ranking of the Fund within a performance universe comprised of funds with the same Broadridge investment classification and objective (the “Universe”), by total return for the applicable one-, three- and five-year periods. The Trustees reviewed a description of Broadridge’s methodology for selecting exchange-traded funds in the Fund’s Universe, and noted that Universe quintile rankings were not calculated if the number of funds in the Universe did not meet a predetermined minimum. As part of this review, the Trustees also reviewed the Fund’s performance against its benchmark and considered the performance information provided for the Fund at regular Board meetings by the Adviser and the Trustees’ independent consultant and also considered the special analysis prepared for certain Funds by the Trustees’
independent consultant. The Trustees also engaged with the Adviser to consider what steps might be taken to improve performance, as applicable. The Broadridge performance data noted by the Trustees as part of their review and the determinations made by the Trustees with respect to the Fund’s performance are summarized below:
The Trustees noted that the Fund’s performance was in the second, third and third quintiles of the Universe for the one-, three- and five-year periods ended December 31, 2022, respectively. The Trustees discussed the performance and investment strategy of the Fund with the Adviser and reviewed the performance analysis and evaluation prepared by the independent consultant. Based upon these discussions and various other factors, the Trustees concluded that the Fund’s performance was satisfactory.
Advisory Fee and Expense Ratio
The Trustees considered the contractual advisory fee rate and administration fee rate paid by the Fund to the Adviser and compared the combined rate to the information prepared by Broadridge concerning management fee rates paid by other funds in the Universe, as well as a subset of funds within the Universe (the “Peer Group”). The Trustees recognized that Broadridge reported the Fund’s management fee rate as the combined contractual advisory fee and administration fee rates. The Trustees also reviewed information about other expenses and the expense ratio for the Fund, and noted that Universe and Peer Group quintile rankings were not calculated if the number of funds in the Universe and/or Peer Group did not meet a predetermined minimum. The Trustees considered the Fee Cap currently in place for the Fund, the net advisory fee rate and net expense ratio, taking into account any waivers and/or reimbursements, and, where deemed appropriate by the Trustees, additional waivers and/or reimbursements. The Trustees recognized that it can be difficult to make comparisons of advisory fees because there are variations in the services that are included in the fees paid by other funds. The Trustees’ determinations as a result of the review of the Fund’s advisory fee and expense ratio are summarized below:
The Trustees noted that the Fund’s net advisory fee was in the first and second quintiles of the Peer Group and Universe, respectively, and that the actual total expenses were in the second quintile of both the Peer Group and Universe. After considering the factors identified above, in light of this information, the Trustees concluded that the advisory fee was fair and reasonable in light of the services provided to the Fund.
| J.P. Morgan Exchange-Traded Funds | |
Certain tax information for the J.P. Morgan Funds is required to be provided to shareholders based upon the Funds’ income and distributions for the taxable year ended October 31, 2023. The information and distributions reported in this letter may differ from the information and taxable distributions reported to the shareholders for the calendar year ending December 31, 2023. The information necessary to complete your income tax returns for the calendar year ending December 31, 2023 will be provided under separate cover.
Qualified Dividend Income (QDI)
The Fund had $136,929,214, of ordinary income distributions and foreign tax credits (if applicable) treated as qualified dividends for the fiscal year ended October 31, 2023.
Foreign Source Income and Foreign Tax Credit Pass Through
For the fiscal year ended October 31, 2023, the Fund intends to elect to pass through to shareholders taxes paid to foreign countries. The Fund had $170,985,451 and $10,759,195 in gross income and foreign tax expenses or amounts as finally determined.
| J.P. Morgan Exchange-Traded Funds | |
J.P. Morgan Exchange-Traded Funds are distributed by JPMorgan Distribution Services, Inc., an indirect, wholly-owned subsidiary of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the Funds.
Contact J.P. Morgan Exchange-Traded Funds at 1-844-457-6383 (844-4JPM ETF) for a fund prospectus. You can also visit us at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The prospectus contains this and other information about the fund. Read the prospectus carefully before investing.
Investors may obtain information about the Securities Investor Protection Corporation (SIPC), including the SIPC brochure, by visiting www.sipc.org or by calling SIPC at 202-371-8300.
The Fund files a complete schedule of its fund holdings for the first and third quarters of its fiscal year with the SEC as an exhibit to its report on Form N-PORT. The Fund's Form N-PORT reports are available on the SEC’s website at http://www.sec.gov. The Fund's quarterly holdings can be found by visiting the J.P. Morgan Funds’ website at www.jpmorganfunds.com.
Effective January 24, 2023, the SEC adopted rule and form amendments that will result in changes to the design and delivery of shareholder reports of mutual funds and ETFs, requiring them to transmit concise and visually engaging streamlined annual and semi-annual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semi-annual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024.
A description of the Fund's policies and procedures with respect to the disclosure of the Fund's holdings is available in the prospectus and Statement of Additional Information.
A copy of proxy policies and procedures is available without charge upon request by calling 1-844-457-6383 and on the Fund's website at www.jpmorganfunds.com. A description of such policies and procedures is on the SEC’s website at www.sec.gov. The Trustees have delegated the authority to vote proxies for securities owned by the Fund to the Adviser. A copy of the Fund's voting record for the most recent 12-month period ended June 30 is available on the SEC’s website at www.sec.gov or at the Fund's website at www.jpmorganfunds.com no later than August 31 of each year. The Fund's proxy voting record will include, among other things, a brief description of the matter voted on for each fund security, and will state how each vote was cast, for example, for or against the proposal.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.
© JPMorgan Chase & Co., 2023. All rights reserved. October 2023.
AN-CONV-ETF-1023
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so.
The registrant must briefly describe the nature of any amendment, during the period covered by the report, to a provision of its code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item. The registrant must file a copy of any such amendment as an exhibit pursuant to Item 13(a)(1), unless the registrant has elected to satisfy paragraph (f) of this Item by positing its code of ethics on its website pursuant to paragraph (f)(2) of this Item, or by undertaking to provide its code of ethics to any person without charge, upon request, pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a waiver, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or third party, that relates to one or more items set forth in paragraph (b) of this Item, the registrant must briefly describe the nature of the waiver, the name of the person to whom the waiver was granted, and the date of the waiver.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer and principal financial officer. There were no amendments to the code of ethics or waivers granted with respect to the code of ethics in the period covered by the report.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
| | (a) | (1) Disclose that the registrant’s board of directors has determined that the registrant either: |
| | (i) | Has at least one audit committee financial expert serving on its audit committee; or |
| | (ii) | Does not have an audit committee financial expert serving on its audit committee. |
The Registrant’s Board of Trustees has determined that the Registrant has at least one audit committee financial expert serving on its audit committee. The Securities and Exchange Commission has stated that the designation or identification of a person as an audit committee financial expert pursuant to this Item 3 of Form N-CSR does not impose on such person any duties, obligations or liabilities that are greater than the duties, obligations and liabilities imposed on such person as a member of the Audit Committee and the Board of Trustees in the absence of such designation or identification.
(2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is “independent.” In order to be considered “independent” for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee:
| | (i) | Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or |
| | (ii) | Be an “interested person” of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-2(a)(19)). |
The Audit committee financial experts are Gary L. French, Kathleen M. Gallagher, Raymond Kanner and Lawrence R. Maffia, each of whom is not an “interested person” of the Registrant and is also “independent” as defined by the U.S. Securities and Exchange Commission for the purposes of the audit committee financial expert determination.
(3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years.
AUDIT FEES
2023 – $863,957
2022 – $641,349
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
AUDIT-RELATED FEES
2023 – $220,032
2022 – $175,911
Audit-related fees consist of security count procedures performed as required under Rule 17f-2 of the Investment Company Act of 1940 during the Registrant’s fiscal year.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
TAX FEES
2023 – $331,063
2022 – $276,692
The tax fees consist of fees billed in connection with preparing the federal regulated investment company income tax returns for the Registrant for the tax years ended October 31, 2023 and 2022, respectively.
For the last fiscal year, no tax fees were required to be approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category.
ALL OTHER FEES
2023 – $0
2022 – $0
(e)(1) Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Pursuant to the Registrant’s Audit Committee Charter and written policies and procedures for the pre-approval of audit and non-audit services (the “Pre-approval Policy”), the Audit Committee pre-approves all audit and non-audit services performed by the Registrant’s independent public registered accounting firm for the Registrant. In addition, the Audit Committee pre-approves the auditor’s engagement for non-audit services with the Registrant’s investment adviser (not including a sub-adviser whose role is primarily portfolio management and is sub-contracted or overseen by another investment adviser) and any Service Affiliate in accordance with paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, if the engagement relates directly to the operations and financial reporting of the Registrant. Proposed services may be pre-approved either 1) without consideration of specific case-by-case services or 2) require the specific pre-approval of the Audit Committee. Therefore, initially the Pre-approval Policy listed a number of audit and non-audit services that have been approved by the Audit Committee, or which were not subject to pre-approval under the transition provisions of Sarbanes-Oxley Act of 2002 (the “Pre-approval List”). The Audit Committee annually reviews and pre-approves the services included on the Pre-approval List that may be provided by the independent public registered accounting firm without obtaining additional specific pre-approval of individual services from the Audit Committee. The Audit Committee adds to, or subtracts from, the list of general pre-approved services from time to time, based on subsequent determinations. All other audit and non-audit services not on the Pre-approval List must be specifically pre-approved by the Audit Committee.
One or more members of the Audit Committee may be appointed as the Committee’s delegate for the purposes of considering whether to approve such services. Any pre-approvals granted by the delegate will be reported, for informational purposes only, to the Audit Committee at its next scheduled meeting. The Audit Committee’s responsibilities to pre-approve services performed by the independent public registered accounting firm are not delegated to management.
(2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
2023 – 0.0%
2022 – 0.0%
(f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
Not applicable.
(g) Disclose the aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant.
The aggregate non-audit fees billed by the independent registered public accounting firm for services rendered to the Registrant, and rendered to Service Affiliates, for the last two calendar year ends were:
2022 – $32.2 million
2021 – $30.5 million
(h) Disclose whether the registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
The Registrant’s Audit Committee has considered whether the provision of the non-audit services that were rendered to Service Affiliates that were not pre-approved (not requiring pre-approval) is compatible with maintaining the independent public registered accounting firm’s independence. All services provided by the independent public registered accounting firm to the Registrant or to Service Affiliates that were required to be pre-approved were pre-approved as required.
(i) A registrant identified by the Commission pursuant to Section 104(i)(2)(A) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214(i)(2)(A)), as having retained, for the preparation of the audit report on its financial statements included in the Form NCSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board has determined it is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction must electronically submit to the Commission on a supplemental basis documentation that establishes that the registrant is not owned or controlled by a governmental entity in the foreign jurisdiction. The registrant must submit this documentation on or before the due date for this form. A registrant that is owned or controlled by a foreign governmental entity is not required to submit such documentation.
Not applicable.
(j) A registrant that is a foreign issuer, as defined in 17 CFR 240.3b-4, identified by the Commission pursuant to Section 104(i)(2)(A) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214(i)(2)(A)), as having retained, for the preparation of the audit report on its financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board has determined it is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction, for each year in which the registrant is so identified, must provide the below disclosures. Also, any such identified foreign issuer that uses a variable-interest entity or any similar structure that results in additional foreign entities being consolidated in the financial statements of the registrant is required to provide the below disclosures for itself and its consolidated foreign operating entity or entities. A registrant must disclose:
| | (1) | That, for the immediately preceding annual financial statement period, a registered public accounting firm that the PCAOB was unable to inspect or investigate completely, because of a position taken by an authority in the foreign jurisdiction, issued an audit report for the registrant; |
| | (2) | The percentage of shares of the registrant owned by governmental entities in the foreign jurisdiction in which the registrant is incorporated or otherwise organized; |
| | (3) | Whether governmental entities in the applicable foreign jurisdiction with respect to that registered public accounting firm have a controlling financial interest with respect to the registrant; |
| | (4) | The name of each official of the Chinese Communist Party who is a member of the board of directors of the registrant or the operating entity with respect to the registrant; and |
| | (5) | Whether the articles of incorporation of the registrant (or equivalent organizing document) contains any charter of the Chinese Communist Party, including the text of any such charter. |
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant’s audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15
U.S.C. 78c(a)(58)(B)), so state.
The registrant has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act. The members of the Audit Committee are Gary L. French, Kathleen M. Gallagher, Raymond Kanner and Lawrence R. Maffia.
(b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I – Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in Section 210.12-12 of Regulation S-X, unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Included in Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company’s investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
(a) If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item.
No material changes to report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).
The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
There were no changes in the Registrant’s internal control over financial reporting that occurred during the reporting period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
| | (a) | File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. |
(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit.
Code of Ethics applicable to its Principal Executive and Principal Financial Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto.
(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2), exactly as set forth below:
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto.
(1) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons.
Not applicable.
(2) Change in the registrant’s independent public accountant. Provide the information called for by Item 4 of Form 8-K under the Exchange Act (17 CFR 249.308). Unless otherwise specified by Item 4, or related to and necessary for a complete understanding of information not previously disclosed, the information should relate to events occurring during the reporting period.
Not applicable.
(b) A separate or combined certification for each principal executive officer and principal officer of the registrant as required by Rule 30a-2(b) under the Act of 1940.
Certifications pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
J.P. Morgan Exchange-Traded Fund Trust
| | |
| By: | | /s/ Brian S. Shlissel |
| | Brian S. Shlissel |
| | President and Principal Executive Officer. |
| | December 28, 2023 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By: | | /s/ Brian S. Shlissel |
| | Brian S. Shlissel |
| | President and Principal Executive Officer |
| | December 28, 2023 |
| |
| By: | | /s/ Timothy J. Clemens |
| | Timothy J. Clemens |
| | Treasurer and Principal Financial Officer |
| | December 28, 2023 |
