Summary Prospectus July
1, 2024
| JPMorgan Realty Income ETF Ticker: JPRE |
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 to provide high total investment return through a combination of capital appreciation and current income.
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 EXPENSES
(Expenses that you pay each year as a percentage of the
value of your investment) |
|
| Management Fees
|
0.60% |
| Other Expenses
|
0.12 |
| Total Annual Fund Operating Expenses |
0.72 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.22 |
| Total Annual Fund Operating Expenses after Fee Waiv- ers and/or Expense Reimbursements 1 |
0.50 |
1
The Fund’s adviser and/or its affiliates have contractually agreed to waive fees and/or reimburse expenses
to the extent Total Annual Fund Operating Expenses (excluding acquired fund fees and expenses other than certain money market fund fees as described below, dividend and interest expenses related to short sales, interest,
taxes, expenses related to litigation and potential litigation, costs of shareholder meetings, and extraordinary expenses) exceed 0.50% of the average daily net assets of the Fund. The Fund may invest in one or more money
market funds advised by the adviser or its affiliates (affiliated money market funds). The Fund’s adviser has contractually agreed to waive fees and/or reimburse expenses in an amount sufficient to offset the fees and
expenses of the affiliated money market funds incurred by the Fund because of the Fund’s investment in such money market funds. These waivers are in effect through 6/30/25, at which time it will be determined whether such waivers will be renewed or revised. To the extent that the Fund engages in securities lending, affiliated money market fund fees and expenses resulting
from the Fund’s investment of cash received from securities lending borrowers are not included in Total Annual Fund Operating Expenses and therefore, the above waivers do not apply to such investments.
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 $10,000 in the Fund for the time periods indicated. The Example also assumes that your
investment has a 5% return each year and that the Fund’s
operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table through 6/30/25 and total annual
fund operating expenses thereafter. Your actual costs may be higher or lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| SHARES ($) |
51 |
208 |
379 |
874 |
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 96% of the average value of its portfolio.
What are the Fund’s main investment strategies?
The Fund seeks to achieve its objective by investing substantially all of its assets, and in any event under normal circumstances at least 80% of its net assets
(plus the amount of any borrowings for investment purposes), in equity securities of real estate
investment trusts (REITs), including REITs with relatively small market capitalizations. The Fund may invest in both equity REITs and mortgage REITs. Equity REITs take ownership interests in real estate. Mortgage REITs
invest in mortgages (loans secured by interests in real estate). The Fund may also invest up to
15% of net assets in illiquid holdings.
As investment adviser to the Fund, J.P. Morgan Investment
Management Inc. (JPMIM) manages the portfolio utilizing a disciplined investment process that
focuses on stock selection rather than focusing on particular sectors or themes. JPMIM’s
portfolio management team continuously screens the target universe of investments, selecting
companies that exhibit superior financial strength, operating returns and attractive growth
prospects.
The REIT research team takes an in-depth look at each company’s ability to generate earnings over a long-term business cycle, rather than focusing solely on
near-term expectations. These research efforts allow the team to determine each
1
company’s normalized earnings (i.e.,
projected earnings adjusted to reflect what the company should earn at the midpoint of an
economic cycle) and growth potential, from which they evaluate whether each company’s current price fully reflects its long-term value. As part of its investment process, the adviser seeks to assess the impact of
environmental, social and governance (ESG) factors on the companies in which the Fund invests.
The adviser’s assessment is based on a proprietary analysis of key opportunities and risks across industries to seek to identify financially material issues with respect to the Fund’s investments in
securities and ascertain key issues that merit engagement with company management. These
assessments may not be conclusive and securities of companies may be purchased and retained by the Fund for reasons other than material ESG factors.
The Fund is non-diversified.
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.
Real Estate Securities
Risk. The Fund’s investments in real estate securities, including REITs, are subject to the
same risks as direct investments in real estate and mortgages, and their value will depend on the
value of the underlying real estate interests. These risks include default, prepayments, changes in value resulting from changes in interest rates and demand for real and rental property, decreases in real estate
values, overbuilding, increased competition and other risks related to local or general economic
conditions, increases in operating costs and property taxes, changes in zoning laws, casualty or condemnation losses, possible environmental liabilities, regulatory limitations on rent, possible lack of availability of
mortgage financing, market saturation, fluctuations in rental income and the value of underlying
properties and extended vacancies of properties, and the management skill and creditworthiness of REIT issuers. The Fund will indirectly bear its proportionate share of expenses, including management fees, paid by each
REIT in which it invests in addition to the expenses of the Fund.
Equity Market Risk. The price of equity securities may rise or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly
or unpredictably. These price movements may result from factors affecting individual companies,
sectors or industries selected for the Fund’s portfolio or the securities market as a whole, such as changes in economic or political conditions. When the value of the Fund’s portfolio securities goes
down, your investment in the Fund decreases in value.
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.
Smaller Company Risk. Investments in securities of smaller companies (mid cap and small cap companies) may be riskier, less liquid, more volatile and more vulnerable to
economic, market and industry changes than securities of larger, more established companies. The
securities of smaller companies may trade less frequently and in smaller volumes than securities
of larger companies. As a result, changes in the price of securities issued by such companies may
be more sudden or erratic than the prices of securities of large capitalization companies,
especially over the short term. These risks are higher for small cap companies.
Non-Diversified Fund Risk. Since the Fund is non-diversified, it may invest a greater percentage of its assets in a particular issuer or group of issuers than a diversified fund would. This increased investment in fewer issuers may
result in the Fund’s Shares being more sensitive to economic results of those issuing the
securities. The value of the Fund’s Shares may also be more volatile than the value of a fund which invests in more securities.
Concentration Risk.
The Fund is concentrated in securities issued by REITs. This concentration increases the risk of loss to the Fund by increasing its exposure to economic, business, political or regulatory developments that may be
adverse to REITs.
Tax Risk. REITs in which the Fund will invest are subject to complicated Internal Revenue Code rules. The tax laws
that apply to these investment vehicles have the potential to create negative tax consequences
for the Fund, or for certain shareholders of the Fund, including, in particular, charitable
remainder trusts and non-U.S. taxpayers. The Fund is subject to the risk that the issuer of the
securities will fail to comply with certain requirements of the Internal Revenue Code, which could
cause adverse tax consequences.
The Fund may distribute amounts to shareholders in excess of its earnings, resulting in a return of capital.
Such distributions are not currently taxable to shareholders; instead, any such distributions
would reduce a shareholder’s tax basis in its Shares, resulting in an increased gain, or decreased loss, on a later redemption or other taxable disposition of such Shares. Should any such distributions exceed a
shareholder’s tax basis in its Shares, such excess would be treated as gain and taxable to
the shareholder in the same manner as gain from a sale of Fund Shares.
2
ETF Shares
Trading Risk. Shares are listed for trading on the NYSE Arca, 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.
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.
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 Fund commenced operations after the assets of another investment company advised by the adviser,
JPMorgan Realty Income Fund (the predecessor fund), were transferred to the Fund in a tax-free
reorganization as of the close of business on May 20, 2022. The Fund has the same investment objective and substantially similar investment strategies as those of the predecessor fund.
The bar chart shows how the performance of the Fund’s Shares (represented by the performance of the predecessor fund’s Class R6 Shares) has varied from year to year
for the past ten calendar years. The table shows the Fund’s average annual total returns
(represented by the average annual total returns of the predecessor fund’s Class R6 Shares) for the past one year, five years and ten years. The table compares the Fund’s performance (represented by the performance of the predecessor fund’s Class R6 Shares) to the
performance of the FTSE NAREIT All Equity REITs Index. Performance shown for the predecessor
fund’s Class R6 Shares prior to their inception are based on the performance of the predecessor fund’s Class R5 Shares. The actual returns of the predecessor fund’s Class R6 Shares would have been different than
those shown because the predecessor fund’s Class R6 Shares had different expenses than the
predecessor fund’s Class R5 Shares. Performance for the Fund’s Shares has not been adjusted to reflect the Fund’s Shares’ lower expenses than those of the predecessor fund’s Class R6 Shares and Class R5 Shares.
Had the predecessor fund
been structured as an exchange-traded fund (ETF), its
performance may have differed. Performance for the predecessor fund is based on the NAV per share
of the predecessor fund shares rather than on market-determined prices. 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).
The JPMorgan Realty
Income ETF (the “JPMorgan Realty Income ETF”) has been developed solely by JPMorgan Chase Bank N.A. The JPMorgan Realty Income ETF is not in any way connected to or sponsored, endorsed, sold or promoted by FTSE
International Limited (“FTSE”) or the London Stock Exchange Group plc and its group
undertakings (collectively, the “LSE Group”) or Nareit. All rights in the FTSE NAREIT All Equity REITs Index (the “Index”) vest in FTSE and Nareit. “FTSE®” is a trade mark of the LSE Group and is used by FTSE
International Limited (“FTSE”) under licence. “NAREIT®” is a trade mark of the Nareit. The Index is calculated by FTSE. Neither FTSE, nor the LSE Group, nor Nareit accept any liability whatsoever to any person
arising out of (a) the use of, reliance on or any error in the Index or (b) investment in or
operation of the JPMorgan Realty Income ETF. FTSE, the LSE Group, and Nareit make no claim, prediction, warranty or representation either as to the results to be obtained from the JPMorgan Realty Income ETF or the
suitability of the Index for the purpose to which it is being put by JPMorgan Chase Bank
N.A.
| YEAR-BY-YEAR RETURNS |
| Best Quarter |
1st quarter, 2019 |
17.24% |
| Worst Quarter |
1st quarter, 2020 |
-23.50% |
| The Fund’s year-to-date total return |
through |
3/31/24 |
was |
-2.16% |
. |
3
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| SHARES |
|
|
|
| Return Before Taxes |
13.28 % |
8.48 % |
7.48 % |
| Return After Taxes on Distributions |
11.91 |
5.50 |
5.13 |
| Return After Taxes on Distributions and Sale of Fund Shares |
8.01 |
5.99 |
5.26 |
| |
|
|
|
| FTSE NAREIT ALL EQUITY REITS INDEX (Reflects No Deduction for Fees, Expenses, or Taxes) |
11.36 |
7.59 |
7.95 |
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. In some cases,
the “Return After Taxes on Distributions and Sale of Fund Shares” may exceed the “Return Before Taxes” due to an assumed benefit from any losses on a sale of Shares at the end of the measurement period.
Management
J.P. Morgan Investment Management Inc. (the adviser)
| Portfolio Manager |
Managed the Fund Since |
Primary Title with
Investment Adviser |
| Scott Blasdell |
2022 |
Managing Director |
| Jason Ko, CFA |
2022 |
Executive Director |
| Nicholas Turchetta |
2023 |
Vice President |
Mr. Blasdell and Mr. Ko also were the predecessor fund's portfolio managers since 2017 and 2009,
respectively.
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
To the
extent the Fund makes distributions, those distributions will be taxed as ordinary income or capital gains, except when your investment is in an IRA, 401(k) plan or other tax-advantaged investment plan, in which case you may be
subject to federal income tax 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-RINC-ETF-724