The JPMorgan US Stock ETF outperforms the iShares Core S&P 500 and Vanguard S&P 500 ETF - What is the secret to success?

The JPMorgan US Stock ETF outperforms the iShares Core S&P 500 and Vanguard S&P 500 ETF - What is the secret to success?

According to a report by www.boerse-online.de,

A U.S. equity ETF from JPMorgan has outperformed the iShares Core S&P 500 ETF and the Vanguard S&P 500 ETF over the past five years. The JPMorgan US Research Enhanced Index Equity (ESG) ETF has built a lead of around four percentage points over a passive S&P 500 ETF since its launch in October 2018.

In terms of impact on the market and investors, this means that active ETFs based on a research-enhanced index approach offer a way to beat the market without incurring the costs of an actively managed fund. The fact that the JPMorgan ETF is only slightly more expensive in terms of running costs than classic ETFs could further increase the attractiveness of this approach for investors.

The JPMorgan ETF team's strategy of lightly weighting individual stocks relative to the S&P 500 Index based on research experts' assessments has proven successful. This could lead other asset managers to consider similar approaches to provide value to investors.

The fact that the JPMorgan Global REI Equity ESG ETF also performed well shows that this approach is not just limited to the US market, but can also be successful in other regions and markets.

Overall, the success of the JPMorgan ETF could lead to investors increasingly looking for active ETFs with a research-enhanced index approach and asset managers potentially launching similar products to capitalize on this trend.