economy
This JPMorgan income ETF was named one of the best by Morningstar. Where its manager is investing now
JPMorgan's Sam Witherow explains why the JPMorgan Dividend Leaders ETF is outperforming and where he sees opportunities for income.
TL;DR
- The JPMorgan Dividend Leaders ETF (JDIV) has outperformed the S&P 500 with a year-to-date return of -1.43% compared to the S&P 500's -4.33%.
- JDIV has approximately 51% of its assets in U.S. stocks, with the remainder spread globally.
- The ETF is designed to provide market-like returns with a slight value tilt and aims to deliver a material premium in dividend income.
- It avoids direct bets on Artificial Intelligence, focusing instead on companies insulated from AI-related volatility.
- The fund's strategy involves investing in three groups: fastest-growing dividends, sustainable high yield stocks, and 'compounder-type stocks'.
- The portfolio manager sees current opportunities in international banks (Singapore, Japan, U.K., Sweden) and industrials, particularly aerospace.
- International large-cap media and internet companies are also noted for strong dividend growth.