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

The JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC) was launched on November 16, 2020, and is a passively managed exchange traded fund designed to offer broad exposure to the Small Cap Value segment of the US equity market.The fund is sponsored by J.P. Morgan. It has amassed assets over $616.96 million, making it one of the average sized ETFs attempting to match the Small Cap Value segment of the US equity market.Why Small Cap ValueThere's a lot of potential to investing in small cap companies, but with market capitalization below $2 billion, that high potential comes with even higher risk.Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. When you look at long-term performance, value stocks have outperformed growth stocks in nearly all markets. But in strong bull markets, growth stocks are more likely to be winners. CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.12%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation to the Industrials sector -- about 17.9% of the portfolio. Financials and Information Technology round out the top three.Looking at individual holdings, Bloom Energy Corp Common (BE) accounts for about 1.48% of total assets, followed by Rocket Cos Inc Common (RKT) and Kratos Defense & (KTOS).The top 10 holdings account for about 7.67% of total assets under management.Performance and RiskBBSC seeks to match the performance of the MORNINGSTAR US SML CP TRG MRK EXP EXT ID before fees and expenses. The Morningstar US Small Cap Target Market Exposure Extended Index is a free-float adjusted, market-cap weighted index that targets small cap securities traded in the U.S.The ETF has gained about 14.15% so far this year and is up roughly 6.83% in the last one year (as of 12/11/2025). In the past 52-week period, it has traded between $52.57 and $77.24.The ETF has a beta of 1.14 and standard deviation of 21.97% for the trailing three-year period. With about 741 holdings, it effectively diversifies company-specific risk.AlternativesJPMorgan BetaBuilders U.S. Small Cap Equity ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, BBSC is an excellent option for investors seeking exposure to the Style Box - Small Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well. The iShares Russell 2000 Value ETF (IWN) and the Vanguard Small-Cap Value ETF (VBR) track a similar index. While iShares Russell 2000 Value ETF has $12.35 billion in assets, Vanguard Small-Cap Value ETF has $32.61 billion. IWN has an expense ratio of 0.24% and VBR charges 0.07%.Bottom-LinePassively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks