JP Morgan’s BBUS ETF: At 2 bps, the Lowest Fee ETF in the US

December 3, 2019 | News

JPMorgan BetaBuilders U.S. Equity ETF charges just 0.02%. The ETF offers exposure to large- and midcap stocks.

When it launched in March 2019, the JPMorgan BetaBuilders U.S. Equity ETF (BBUS) under-cut the then cheapest ETFs from BlackRock’s iShares and Charles Schwab, which had been the lowest-fee offerings for broad US equity exposure, at 0.03 percent each. JP Morgan’s BBUS was, therefore, cheaper by a third.

JP Morgan asterisks the fee with a remark “ordinary brokerage commissions apply.” Brokerage commissions are history, of course.

It would be interesting to watch what else is consumed by the kamikaze dive of financial services fees. SoFi is offering zero-fee ETFs and Salt Financial a negative fee on its Salt Low truBeta US Market Fund (cboe:LSLT). However, these ETFs are yet to capture investors’ fancy.

At the time of its launch, the low fees on JP Morgan BBUS immediately sparked speculation on when, if at all, the fund house would launch a zero-fee ETF. That has not happened, and BBUS remains at the top of the low-fee ETF sweepstakes.

About JP Morgan BBUS

  • Fund house JP Morgan
  • tracks a market-cap-weighted index of US large- and midcap stocks (Morningstar US Target Market Exposure Index)
  • charges a very low fee for a comprehensive, market-neutral portfolio of large- and midcap stocks
  • open-ended fund launched on March, 12, 2019
  • expense ratio 0.02%
  • AUM $62.28 million
  • 1 month return 4.71%
  • 3-month return 10.58%
  • currently trading at $56.60
  • top sectors are technology 27.23%, financials 16.11%, healthcare 13.68%

[Related Story: Liquid Alternatives: SEC Proposes New ETF Derivatives Rules   ]

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