Summary Prospectus July
1, 2024
| JPMorgan Ultra-Short Municipal Income
ETF Ticker: JMST |
Before you invest, you may want to review the Fund’s Prospectus, which contains more
information about the Fund and its risks. You can find the Fund’s Prospectus and other information about the Fund, including the Statement of
Additional Information, online at www.jpmorganfunds.com/funddocuments. You can also get this information at no cost by calling 1-844-457-6383 or by sending an e-mail request to jpm.xf@jpmorgan.com or by
asking any financial intermediary that offers shares of the Fund. The Fund’s Prospectus and Statement of Additional Information, both dated July 1,
2024, as may be supplemented from time to time are incorporated by reference into this Summary Prospectus.
What is the goal of
the Fund?
The Fund seeks as high a level of current income exempt from federal income tax as is consistent with relative stability of principal.
Fees and Expenses of the Fund
The following table describes the fees and expenses that you may pay if you buy, hold and sell Shares of the Fund. You may pay other fees, such as brokerage commissions
and other fees to financial intermediaries, which are not reflected in the table and example
below.
| ANNUAL FUND OPERATING EXPENSES1
(Expenses that you pay each year as a percentage of the
value of your investment) |
|
| Management Fees
|
0.18% |
| Total Annual Fund Operating Expenses |
0.18 |
1
The Fund's management agreement provides that the adviser will pay substantially all expenses of the Fund
(including expenses of the Trust relating to the Fund), except for the management fees, payments under the Fund’s 12b-1 plan (if any), interest expenses, dividend and interest expenses related to short sales,
taxes, acquired fund fees and expenses (other than fees for funds advised by the adviser and/or its affiliates), costs of holding shareholder meetings, and litigation and potential litigation and other extraordinary expenses not incurred in
the ordinary course of the Fund’s business. Additionally, the Fund shall be responsible for its non-operating expenses, including brokerage commissions and fees and expenses associated with the Fund’s securities
lending program, if applicable.
Example
This Example
is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. The Example does not take into account brokerage commissions that you pay when purchasing or selling Shares of the
Fund. The Example assumes that you invest $10,000 in the Fund for the time periods indicated. The
Example also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same. Your actual costs may be higher or lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| SHARES ($) |
18 |
58 |
101 |
230 |
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Shares are held in a
taxable account. These costs, which are not reflected in annual fund operating expenses or in the
Example, affect the Fund’s performance. During the Fund’s most recent fiscal year, the
Fund’s portfolio turnover rate was 76% of the average value of its portfolio.
What are the Fund’s main investment strategies?
Under normal circumstances, the Fund invests at least 80% of its Assets in municipal securities, the income from which is exempt from federal income tax. This is a
fundamental policy. For purposes of this policy, “Assets” means net assets, plus the
amount of borrowings for investment purposes. Up to 25% of the Fund’s Assets may be
invested in municipal securities, the interest on which may be subject to the federal alternative
minimum tax for individuals.
Municipal securities are securities issued by or on behalf of states, territories and possessions of the United States, including the District of Columbia, and their
respective authorities, political subdivisions, agencies and instrumentalities and other groups
with the authority to act for the municipalities, the interest on which is exempt from federal income tax. The securities are issued to raise funds for various public and private purposes. Municipal securities include variable rate
demand obligations, variable rate demand preferred securities, short-term municipal notes,
municipal bonds, tax exempt commercial paper, private activity and industrial development bonds, tax anticipation notes, bond anticipation notes, revenue anticipation notes or other short term notes, private
placements and participations in pools of municipal securities. At times, the Fund may invest a
significant amount of its assets in municipal securities that may be subject to the federal alternative minimum tax for individuals.
Municipal
securities also include instruments evidencing direct ownership of interest payments or principal payments, or both, on municipal securities, such as tender option bonds and participation interests in all or part of specific
holdings of municipal obligations, provided that the applicable issuer receives assurances from
legal counsel that the interest payable on the securities is exempt from federal income tax.
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Additionally, municipal securities include
all other instruments that directly or indirectly provide economic exposure to income which is
derived from municipalities.
The Fund invests in a portfolio of municipal securities with an average weighted maturity of two years or less. Average weighted maturity is the average of all the current
maturities (that is, the term of the securities) of the individual securities in the Fund
calculated so as to count most heavily those securities with the highest dollar value. Average weighted maturity is important to investors as an indication of the Fund’s sensitivity to changes in interest rates. Usually,
the longer the average weighted maturity, the more fluctuation in share price you can
expect.
The securities in
which the Fund invests may have fixed rates of return or floating or variable rates.
Up to 100% of the Fund’s assets may be invested in short-term municipal instruments such as variable
rate demand notes, short-term municipal notes and tax-exempt commercial paper. Their yields will
vary as interests rates change.
The Fund may invest more than 25% of its total assets in municipal obligations, the interest upon which is paid from revenues of projects within a single sector, such
as housing or healthcare.
The Fund also invests in municipal mortgage-backed and asset-backed securities, as well as auction rate securities and restricted securities. The Fund may invest a significant
portion or all of its assets in municipal mortgage-backed securities at the adviser’s
discretion.
As part of its investments in municipal securities, the Fund invests primarily in investment grade securities or the unrated equivalent. Investment grade securities carry
a minimum rating of Baa3, BBB–, or BBB– by Moody’s Investors Service Inc.
(Moody’s), Standard & Poor’s Corporation (S&P), or Fitch Ratings (Fitch),
respectively, or the equivalent by another nationally recognized statistical rating organization (NRSRO), or are unrated but deemed by the adviser to be of comparable quality. Up to 10% of the Fund’s total assets may
be invested in securities rated below investment grade (junk bonds). Junk bonds also include
unrated securities that the adviser believes to be of comparable quality to debt securities that are rated below investment grade. Junk bonds are also called “high yield bonds” and “non-investment grade
bonds.” These securities generally are rated in the fifth or lower rating categories (for example, BB+ or lower by S&P and Ba1 or lower by Moody’s). These securities generally offer a higher yield
than investment grade securities, but involve a high degree of risk. The market for municipal
junk bonds is small and relatively less liquid than taxable junk bonds. A security’s quality is determined at the time of purchase and securities that are rated investment grade or the unrated equivalent may be downgraded or decline
in credit quality such that subsequently they would be deemed to be below investment
grade.
The Fund may also invest in zero-coupon securities.
Up to 20% of the Fund may be invested in money market funds, including affiliated money market funds, or cash.
There may be times when there are not enough municipal securities available to meet the Fund’s needs. On these occasions, the Fund may invest in repurchase
agreements or U.S. Treasury securities that may be subject to federal income tax.
The Fund is not a money market fund and is not subject to the special regulatory requirements (including maturity and credit quality constraints) designed to enable money
market funds to maintain a stable share price.
Investment Process: The adviser buys and sells securities and investments for the Fund based on its view of
individual securities and market sectors. The adviser looks for individual fixed income
investments that it believes will perform well over market cycles. The adviser is value oriented and makes decisions to purchase and sell individual securities and instruments after performing a risk/reward analysis that
includes an evaluation of interest rate risk, credit risk, duration, liquidity and the legal and
technical structure of the transaction. As part of its investment process, the adviser seeks to assess the impact of environmental, social and governance (ESG) factors on certain issuers in the universe in which the Fund may
invest. The adviser’s assessment is based on an analysis of key opportunities and risks
across sectors to seek to identify financially material issues with respect to the Fund’s investments in municipal issues and ascertain key issues that merit engagement with municipal issuers. These assessments may not be
conclusive and securities that may be negatively impacted by such factors may be purchased and
retained by the Fund while the Fund may divest or not invest in securities that may be positively impacted by such factors.
The
Fund’s Main Investment Risks
The Fund is subject to management risk and may not achieve its
objective if the adviser’s expectations regarding particular instruments or markets are not
met.
The Fund is subject to the main risks noted
below, any of which may adversely affect the Fund’s net asset value (NAV), market price,
performance and ability to meet its investment objective.
Interest Rate Risk. The Fund’s investments in bonds and other debt securities will change in value based on interest rates.
If rates increase, the value of the Fund’s investments generally declines. Securities with
greater interest rate sensitivity and longer maturities generally are subject to greater fluctuations in value. The Fund may face a heightened level of interest rate risk due to certain changes in monetary policy.
It is difficult to predict the pace at which central banks or monetary authorities may change
interest rates or the timing, frequency, or magnitude of such changes. Any such changes could be sudden and could expose debt markets to significant volatility and reduced liquidity for Fund
investments.
2
Municipal Obligations
Risk. The risk of a municipal obligation generally depends on the financial and credit status of
the issuer. Changes in a municipality’s financial health may make it difficult for the
municipality to make interest and principal payments when due. This could decrease the Fund’s income or hurt the ability to preserve capital and liquidity.
Under some circumstances, municipal obligations might not pay interest unless the state legislature or
municipality authorizes money for that purpose.
Municipal obligations may be more susceptible to downgrades or defaults during recessions or similar periods
of economic stress. In addition, since some municipal obligations may be secured or guaranteed by
banks and other institutions, the risk to the Fund could increase if the banking or financial sector suffers an economic downturn and/or if the credit ratings of the institutions issuing the guarantee are
downgraded or at risk of being downgraded by a national rating organization. Such a downward
revision or risk of being downgraded may have an adverse effect on the market prices of the bonds and thus the value of the Fund’s investments.
In addition to being downgraded, an insolvent municipality may file for bankruptcy. The reorganization of a municipality’s debts may significantly affect the rights of
creditors and the value of the securities issued by the municipality and the value of the
Fund’s investments. Interest on municipal bonds, while generally exempt from federal income
tax, may not be exempt from federal alternative minimum tax.
Mortgage-Related and Other Asset-Backed Securities Risk. Mortgage-related and asset-backed securities, including certain municipal housing authority obligations, are
subject to certain other risks. The value of these securities will be influenced by the factors
affecting the housing market and the assets underlying such securities. As a result, during periods of declining asset values, difficult or frozen credit markets, significant changes in interest rates, or deteriorating economic
conditions, mortgage-related and asset-backed securities may decline in value, face valuation
difficulties, become more volatile and/or become illiquid. Additionally, mortgage-related and asset-backed securities are subject to risks associated with their structure and the nature of the assets underlying the securities
and the servicing of those assets. Certain mortgage-related and asset-backed securities may face
valuation difficulties and may be less liquid than other types of mortgage-related and asset-backed securities, or debt securities.
These securities
are also subject to prepayment and call risk. In either periods of rising or declining interest rates, the Fund may be subject to contraction risk which is the risk that borrowers will increase the rate at which they prepay
the maturity value of mortgages and other obligations. When mortgages and other obligations are
prepaid and when securities are called, the Fund may have to reinvest in securities with a lower yield or fail to recover additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an
unexpected capital loss and/or a decrease in the amount of dividends and yield. In periods of
either rising or declining interest rates, the Fund may be subject to extension risk which is the risk that the expected maturity of an obligation will lengthen in duration due to a decrease in prepayments. As a result, in certain
interest rate environments, the Fund may exhibit additional volatility.
Debt Securities and Other
Callable Securities Risk. As part of its main investment strategy, the Fund invests in debt
securities. The issuers of these securities and other callable securities may be able to repay
principal in advance, especially when interest rates fall. Changes in prepayment rates can affect the return on investment and yield of these securities. When debt obligations are prepaid and when securities are called,
the Fund may have to reinvest in securities with a lower yield. The Fund also may fail to recover
additional amounts (i.e., premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss.
Credit
Risk. The Fund’s investments are subject to the risk that issuers and/or counterparties
will fail to make payments when due or default completely. If an issuer’s or a counterparty’s financial condition worsens, the credit quality of the issuer or counterparty may deteriorate. Credit spreads
may increase, which may reduce the market values of the Fund’s securities. Credit spread
risk is the risk that economic and market conditions or any actual or perceived credit deterioration may lead to an increase in the credit spreads (i.e., the difference in yield between two securities of similar maturity
but different credit quality) and a decline in price of the issuer’s securities.
Alternative Minimum Tax Risk. The Fund may invest its assets in municipal securities, the interest on which may be subject to the federal alternative minimum
tax.
Taxability Risk. The Fund’s investments in municipal securities rely on the opinion of the issuer’s bond counsel
that the interest paid on those securities will not be subject to federal income tax. Tax
opinions are generally provided at the time the municipal security is initially issued. However, after the Fund buys a security, the Internal Revenue Service may determine that a bond issued as tax-exempt should in fact be
taxable and the Fund’s dividends with respect to that bond might be subject to federal
income tax.
Zero-Coupon and Deferred Payment Securities Risk. The market value of a zero-coupon or deferred payment security is generally more volatile than the market value of, and is more likely to respond to a greater degree in changes in
interest rates than, other fixed income securities with similar maturities and credit quality
that pay interest periodically. In addition, federal income tax law requires that the holder of a zero-coupon security accrue a portion of the discount at which the security was purchased as taxable income each year. The Fund may
consequently have to dispose of portfolio securities under disadvantageous circumstances to
generate cash to satisfy its requirement as a regulated investment company to distribute all of
its net income (including non-cash income attributable to zero coupon securities). These actions may reduce the assets to which the Fund’s expenses could otherwise be allocated and may reduce the Fund’s rate of
return.
Restricted Securities Risk. Restricted securities are securities that cannot be offered for public resale unless registered under the applicable securities laws or that have a contractual restriction that prohibits or limits their resale.
Restricted securities include private placement securities that have not been registered under
the applicable securities laws, such as Rule 144A securities, and securities of U.S. and non-U.S. issuers that are issued pursuant to Regulation S. Private placements are generally subject to strict restrictions on
resale. Restricted securities may not be listed on an exchange and may have no active trading
market. Restricted securities may be illiquid. The
3
Fund may be unable to sell a restricted
security on short notice or may be able to sell them only at a price below current value. It may
be more difficult to determine a market value for a restricted security. Also, a Fund may get only limited information about the issuer of a restricted security, so it may be less able to predict a loss. In addition, if Fund
management receives material non-public information about the issuer, the Fund may as a result be
unable to sell the securities. Certain restricted securities may involve a high degree of business and financial risk and may result in substantial losses.
Government Securities Risk. The Fund invests in securities issued or guaranteed by the U.S. government or its agencies and instrumentalities (such as securities issued by
Ginnie Mae, Fannie Mae, or Freddie Mac). U.S. government securities are subject to market risk,
interest rate risk and credit risk. Securities, such as those issued or guaranteed by Ginnie Mae or the U.S. Treasury, that are backed by the full faith and credit of the United States, are guaranteed only as to
the timely payment of interest and principal when held to maturity and the market prices for such
securities will fluctuate. Notwithstanding that these securities are backed by the full faith and credit of the United States, circumstances could arise that would prevent the payment of interest or principal. This would
result in losses to the Fund. Securities issued or guaranteed by U.S. government-related
organizations, such as Fannie Mae and Freddie Mac, are not backed by the full faith and credit of the U.S. government and no assurance can be given that the U.S. government will provide financial support. Therefore, U.S.
government-related organizations may not have the funds to meet their payment obligations in the
future. U.S. government securities include zero-coupon securities, which tend to be subject to greater market risk than interest-paying securities of similar maturities.
Cash Transactions Risk. Unlike certain ETFs, the Fund may effect creations and redemptions in cash or partially in cash. Therefore, it may be required to sell portfolio
securities and subsequently recognize gains on such sales that the Fund might not have recognized
if it were to distribute portfolio securities in-kind. As such, investments in Shares may be less tax-efficient than an investment in an ETF that distributes portfolio securities entirely in-kind.
General Market Risk.
Economies and financial markets throughout the world are becoming increasingly interconnected,
which increases the likelihood that events or conditions in one country or region will adversely
impact markets or issuers in other countries or regions. Securities in the Fund’s portfolio may underperform in comparison to securities in general financial markets, a particular financial market or other
asset classes due to a number of factors, including inflation (or expectations for inflation),
deflation (or expectations for deflation), interest rates, global demand for particular products or resources, market instability, financial system instability, debt crises and downgrades, embargoes, tariffs, sanctions
and other trade barriers, regulatory events, other governmental trade or market control programs
and related geopolitical events. In addition, the value of the Fund’s investments may be negatively affected by the occurrence of global events such as war, terrorism, environmental disasters, natural disasters or
events, country instability, and infectious disease epidemics or pandemics.
Industry and Sector Focus Risk. At times, the Fund may increase the relative emphasis of its investments in a particular industry or sector. The prices of securities of
issuers in a particular
industry or sector may be more susceptible to fluctuations due to changes in economic or business conditions, government regulations, availability of basic resources or
supplies, contagion risk within a particular industry or sector or to other industries or
sectors, or other events that affect that industry or sector more than securities of issuers in other industries and sectors. To the extent that the Fund increases the relative emphasis of its investments in a particular industry or
sector, the value of the Fund’s Shares may fluctuate in response to events affecting that
industry or sector.
ETF Shares Trading Risk. Shares are listed for trading on the Cboe BZX Exchange, Inc. (the Exchange) and are bought and sold in the secondary market at market prices. The market prices of Shares are expected to fluctuate, in some
cases materially, in response to changes in the Fund’s NAV, the intraday value of the
Fund’s holdings and supply and demand for Shares. The adviser cannot predict whether Shares will trade above, below or at their NAV. Disruptions to creations and redemptions, the existence of significant market
volatility or potential lack of an active trading market for the Shares (including through a
trading halt), as well as other factors, may result in the Shares trading significantly above (at a premium) or below (at a discount) to NAV or to the intraday value of the Fund’s holdings. During such periods, you
may incur significant losses if you sell your Shares.
The securities held by the Fund may be traded in markets that close at a different time than the Exchange.
Liquidity in those securities may be reduced after the applicable closing times. Accordingly,
during the time when the Exchange is open but after the applicable market closing, fixing or settlement times, bid-ask spreads on the Exchange and the corresponding premium or discount to the Shares’ NAV may
widen.
Authorized Participant Concentration Risk. Only an authorized participant may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of intermediaries that act as authorized participants
and none of these authorized participants is or will be obligated to engage in creation or
redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/or redemption orders with respect to the Fund and no other authorized participant
creates or redeems, Shares may trade at a discount to NAV and possibly face trading halts and/or
delisting.
Floating and Variable Rate Securities Risk. Floating and variable rate securities provide for a periodic adjustment in the interest rate paid on the securities. The rate
adjustment intervals may be regular and range from daily up to annually, or may be based on an
event, such as a change in the prime rate. Floating and variable rate securities may be subject to greater liquidity risk than other debt securities, meaning that there may be limitations on the Fund’s ability to sell the
securities at any given time. Such securities also may lose value.
Concentration Risk. The Fund may invest more than 25% of its Assets in municipal securities, the interest upon which is paid from revenues of projects within a single
sector, such as housing and healthcare. As a result, the Fund could be more susceptible to
developments which affect those sectors.
Net Asset Value Risk. The Fund is not a money market fund. Therefore, the Fund does not attempt to maintain a stable NAV and is not subject to the rules that govern the diversity, quality, maturity, liquidity and other features of
securities that money
4
market funds may purchase. Under normal
conditions, the Fund’s investment may be more susceptible than a money market fund to
interest rate risk, valuation risk, credit risk and other risks relevant to the Fund’s investments. Unlike certain money market funds, the Fund’s NAV per share will fluctuate. Because the Fund is not a money market
fund, it does not qualify for the special money market fund tax treatment or tax accounting
methods under Treasury regulations.
High Yield Securities Risk. The Fund may invest in securities that are issued by municipalities that are highly leveraged, less creditworthy or financial distressed. These investments (known as junk bonds) are considered to be speculative
and are subject to greater risk of loss, greater sensitivity to economic changes, valuation
difficulties and potential illiquidity.
In recent years, there has been a broad trend of weaker or less
restrictive covenant protections in the high yield market. Among other things, under such weaker
or less restrictive covenants, borrowers might be able to exercise more flexibility with respect
to certain activities than borrowers who are subject to stronger or more protective covenants.
For example, borrowers might be able to incur more debt, including secured debt, return more
capital to shareholders, remove or reduce assets that are designated as collateral securing high
yield securities, increase the claims against assets that are permitted against collateral
securing high yield securities or otherwise manage their business in ways that could impact
creditors negatively. In addition, certain privately held borrowers might be permitted to file less
frequent, less detailed or less timely financial reporting or other information, which could
negatively impact the value of the high yield securities issued by such borrowers. Each of these factors might negatively impact the high yield instruments held by the Fund.
Auction Rate Securities Risk. The auction rate municipal securities the Fund will purchase will typically have a long-term nominal maturity for which the interest rate is regularly reset through a “Dutch” auction. The
interest rate set by the auction is the lowest interest rate that covers all securities offered for
sale. While this process is designed to permit auction rate securities to be traded at par value,
there is a risk that an auction will fail due to insufficient demand for the securities, which
may adversely affect the liquidity and price of auction rate securities. Moreover, between
auctions, there may be no secondary market for these securities, and sales conducted on a
secondary market may not be on terms favorable to the seller. Thus, with respect to liquidity and
price stability, auction rate securities may differ substantially from cash equivalents,
notwithstanding the frequency of auctions and the credit quality of the security.
You could lose money investing in the Fund.
The Fund’s Past Performance
This section provides some indication of the risks of investing in the Fund. The bar chart shows the performance of the Fund’s Shares over the past five calendar years. The table shows the average annual total returns for the past one
year, five years
and
life of the Fund. It compares that performance to the Bloomberg 1 Year Municipal Bond Index.
Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. Updated performance information is available by visiting www.jpmorganfunds.com or by calling 1-844-457-6383 (844-4JPM ETF).
Source: Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates
(collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorse this material, or guarantee the
accuracy or completeness of any information herein, or make any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, shall
have any liability or responsibility for injury or damages arising in connection therewith.
| YEAR-BY-YEAR RETURNS |
| Best Quarter |
4th quarter, 2023 |
1.57% |
| Worst Quarter |
1st quarter, 2022 |
-0.75% |
| The Fund’s year-to-date total return |
through |
3/31/24 |
was |
0.62% |
. |
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past |
Past |
Life of Fund
since |
| |
1 Year |
5 Years |
10/16/2018 |
| SHARES |
|
|
|
| Return Before Taxes |
3.53 % |
1.61 % |
1.68 % |
| Return After Taxes on Distributions |
3.53 |
1.61 |
1.68 |
| Return After Taxes on Distributions and Sale of Fund Shares |
3.37 |
1.56 |
1.62 |
| BLOOMBERG 1 YEAR MUNICIPAL BOND INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
3.39 |
1.34 |
1.44 |
After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investor’s tax situation and may differ from those shown, and the after-tax returns shown are not relevant to investors who hold their Shares through
tax-deferred arrangements such as 401(k) plans or individual retirement
accounts.
5
Management
J.P. Morgan Investment Management Inc. (the adviser)
| Portfolio Manager |
Managed the
Fund Since |
Primary Title with Investment Adviser |
| Curtis White |
2018 |
Executive Director |
| Josh Brunner |
2018 |
Executive Director |
Purchase and Sale of Shares
Individual Shares of the Fund may only be purchased and sold in secondary market transactions through brokers
or financial intermediaries. Shares of the Fund are listed for trading on the Exchange, and
because Shares trade at market prices rather than NAV, Shares of the Fund may trade at a price greater than NAV (premium) or less than NAV (discount). Certain affiliates of the Fund and the adviser may purchase and
resell Shares pursuant to this prospectus.
An investor may incur costs attributable to the difference between the highest price a buyer is willing to pay
to purchase Shares of the Fund (bid) and the lowest price a seller is willing to accept for
Shares (ask) when buying or selling Shares in the secondary market (the bid-ask spread).
Recent information, including information about the Fund’s NAV, market price, premiums and discounts,
and bid-ask spreads, is included on the Fund’s website at
jpmorganfunds.com.
Tax Information
The Fund’s distributions of interest on municipal bonds generally are not subject to federal income tax;
however the Fund may distribute taxable dividends, including distributions of short-term capital
gains, and long-term capital gains. In addition, interest on certain bonds may be subject to the federal alternative minimum tax. To the extent that the Fund’s distributions are derived from interest on bonds
that are not exempt from applicable state and local taxes, such distributions will be subject to
such state and local taxes. When your investment is in an IRA, 401(k) plan or other tax-advantaged investment plan, you may be subject to federal income tax on ordinary income or capital gains upon withdrawal from the
tax-advantaged investment plan.
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase Shares of the Fund through a broker-dealer or other financial intermediary (such as a bank), the adviser and its related companies may pay the financial
intermediary for the sale of Shares and related services. These payments may create a conflict of
interest by influencing the broker-dealer or financial intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary’s website for
more information.
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SPRO-USMI-ETF-724