JVAL - JVAL: Small Growth Exposure Underperformance As A Consequence
2024-06-25 15:26:21 ET
Summary
- JVAL offers exposure to inexpensive U.S. equities, mostly from mega- and large-cap echelons, while maintaining sector proportions similar to those of the Russell 1000.
- JVAL is sporting a healthy earnings yield despite IT being its key sector. Quality is healthy, but growth characteristics are lackluster.
- JVAL's past performance is marred by its inability to keep pace with IVV and IWB as it captured too much downside.
- My Hold rating on JVAL is maintained.
Today's note is supposed to offer a reassessment of the JPMorgan U.S. Value Factor ETF ( JVAL ), a passively managed investment vehicle targeting inexpensive U.S. equities. My previous note on the ETF was presented in January of this year and had a mostly neutral tone. While expressing appreciation for the quality and value characteristics of JVAL's portfolio, I explained that its growth-light approach translates into a risk of the fund lagging growthier plays in 2024 as investors started to prepare for the streak of interest rate cuts. And since the article was published, the ETF has significantly underperformed the S&P 500, which, as it is worth reminding, has a substantial tilt toward generously priced long-duration equities that have been shining this year....
JVAL: Small Growth Exposure, Underperformance As A Consequence