BBAX | JPMorgan BetaBuilders Developed Asia Pacific-ex Japan ETF

BBAX ISSUER

JPMorgan Funds, issuer of the BBAX, seeks to mirror the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM, investing primarily in securities within this index. With Morningstar, Inc. as the index provider, the fund targets large- and mid-cap companies from developed Asia-Pacific regions excluding Japan, including Australia, Hong Kong, New Zealand, and Singapore. With a focus on replicating the constituent securities of the Underlying Index, the fund utilizes a passive indexing strategy, aiming to match the index's performance closely. However, in cases where full replication is impractical, a representative sampling strategy may be employed. Despite potential variations, the fund commits to investing at least 80% of its assets in securities from the Underlying Index. Moreover, the fund may use exchange-traded futures and forward foreign currency contracts to align with the index's performance. Classified as diversified under the Investment Company Act of 1940, the fund may operate as non-diversified based on the composition of the Underlying Index. This classification allows flexibility in investment concentration, potentially aligning with industry concentrations within the index.

BBAX DIVIDEND

The BBAX dividend is determined by the performance of the JPMorgan Funds' BBAX, which seeks to closely replicate the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM. As such, the dividend distribution of BBAX is influenced by the dividends received from the underlying securities within the index. The fund primarily invests in large- and mid-cap companies from developed Asia-Pacific regions, excluding Japan, and aims to provide investors with passive exposure and returns corresponding to a market cap weighted benchmark. While dividend payouts can fluctuate based on the dividends received from the underlying securities, investors can potentially benefit from regular income distributions reflective of the performance of the underlying index constituents.

BBAX TRACKING

The tracking of BBAX, an offering by JPMorgan Funds, is designed to closely mirror the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM. By investing primarily in securities included in this index, the fund aims to replicate its performance before fees and expenses. Employing a passive indexing investment approach, BBAX seeks to match the movements and returns of the underlying index as accurately as possible. While the fund may not hold all constituent securities in their exact proportions due to practical constraints, it aims to achieve a high level of correlation with the index. To accomplish this, BBAX employs strategies such as replication, where it invests in a substantial portion of the index's securities, or representative sampling, when necessary. Through regular rebalancing and potential use of exchange-traded futures and forward foreign currency contracts, the fund endeavors to maintain alignment with the performance of the underlying index, providing investors with passive exposure to the developed Asia-Pacific ex-Japan equity markets.

BBAX CORRELATION

The correlation of BBAX, a product of JPMorgan Funds, with the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM, is a critical aspect of its investment strategy. BBAX aims to closely track the performance of this index by investing at least 80% of its assets in securities included within it. Through this approach, the fund seeks to achieve a high level of correlation with the underlying index, meaning that as the index moves, BBAX endeavors to move in a similar direction. The fund employs passive indexing techniques such as replication and representative sampling to achieve this correlation, adjusting its portfolio composition to mirror changes in the index. Regular rebalancing and potential use of derivative contracts further contribute to maintaining alignment with the index's performance. Thus, investors in BBAX can expect its returns to exhibit a strong correlation with movements in the underlying index, providing them with exposure to the developed Asia-Pacific ex-Japan equity markets in a manner consistent with their investment objectives.

BBAX SECTOR

BBAX, offered by JPMorgan Funds, provides investors with exposure to a diverse range of sectors within the developed Asia-Pacific ex-Japan equity markets. The fund aims to replicate the performance of the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM, which includes various sectors such as financials, consumer goods, technology, healthcare, and more. While the composition of the index may change over time, BBAX endeavors to maintain alignment with its sector allocations. Through its passive indexing approach, the fund invests in securities from these sectors in proportions that closely resemble those of the underlying index. Consequently, investors in BBAX can gain broad exposure to the sectoral diversity present in the developed Asia-Pacific ex-Japan markets, allowing for a well-rounded investment strategy reflective of the region's economic landscape.

BBAX EXPOSURE

BBAX, managed by JPMorgan Funds, offers investors exposure to the developed Asia-Pacific ex-Japan equity markets through its passive investment strategy. The fund seeks to closely replicate the performance of the Morningstar® Developed Asia Pacific ex-Japan Target Market Exposure IndexSM by investing at least 80% of its assets in securities included in this index. With holdings primarily comprising large- and mid-cap companies from countries like Australia, Hong Kong, New Zealand, and Singapore, BBAX provides investors with a comprehensive view of the region's equity markets. Through regular rebalancing and potential use of derivative contracts, the fund aims to maintain alignment with the index's performance, offering investors a convenient way to gain broad exposure to the developed Asia-Pacific ex-Japan equity markets in line with their investment objectives.