JTEK: A High-Growth Tech ETF With Higher Risks

2025-02-11 03:36:49 ET

Summary

• JPMorgan U.S. Tech Leaders ETF is an actively managed fund with a 0.65% expense ratio, focusing on high-growth technology stocks.
• JTEK's portfolio is heavily tilted towards growth stocks, making it likely to outperform in bull markets but vulnerable during downturns.
• The fund's valuation is significantly higher than its peers and the broader market, posing a higher downside risk in market corrections.
• Investors should consider waiting for a pullback to achieve a better margin of safety before investing in JTEK.

ETF Overview

JPMorgan U.S. Tech Leaders ETF ( JTEK ) owns a portfolio of about 60 technology stocks. The fund has an expense ratio of 0.65%. This is high but understandable as it is an actively managed fund. Other passively managed technology funds such as The Technology Select Sector SPDR ETF ( XLK ) only charges an expense ratio of 0.08%. The fund has a much stronger tilt towards growth than other technology funds. This means the fund should typically outperform in bull markets. However, its valuation is high, making it vulnerable in market corrections. A pullback will provide better margin of safety....

Read the full article on Seeking Alpha

For further details see: