Summary Prospectus July
1, 2024
| JPMorgan Sustainable Municipal Income
ETF Ticker: JMSI |
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 current income exempt from federal income taxes.
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
|
0.30% |
| Other Expenses
|
0.22 |
| Total Annual Fund Operating Expenses |
0.52 |
| Fee Waivers and/or Expense Reimbursements 1 |
-0.34 |
| Total Annual Fund Operating Expenses after Fee Waiv- ers and/or Expense Reimbursements 1 |
0.18 |
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 0.18% 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 7/31/26, 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 $10,000 in the Fund for the time periods indicated. The Example also assumes that your
investment has a 5% return each year and that the Fund’s
operating expenses are equal to the total annual fund operating expenses after fee waivers and expense reimbursements shown in the fee table through 7/31/26 and total annual
fund operating expenses thereafter. Your actual costs may be higher or
lower.
| WHETHER OR NOT YOU SELL YOUR SHARES, YOUR COST
WOULD BE: | ||||
| |
1 Year |
3 Years |
5 Years |
10 Years |
| SHARES ($) |
18 |
93 |
218 |
582 |
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 35% of the average value of its portfolio.
What are the Fund’s main investment strategies?
The Fund invests in a portfolio of municipal bonds, including municipal mortgage-backed and asset-backed securities. While current income is the Fund’s primary focus,
it seeks to produce income in a manner consistent with the preservation of
principal.
Under normal
circumstances, the Fund invests at least 80% of its Assets in municipal bonds, the income from which is exempt from federal income tax. This is a fundamental policy. For the 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. The Fund also invests in municipal mortgage-backed and asset-backed securities,
as well as restricted securities. The Fund may invest a significant portion or all of its assets
in municipal mortgage-backed securities at the adviser’s discretion. The securities in which the Fund invests may have fixed rates of return or floating or variable rates.
Municipal bonds are debt securities with maturities of 90 days or more at the time of issuance issued by
states, territories and possessions of the United States, including the District of Columbia, and
their respective authorities, political subdivisions, agencies and instrumentalities, the interest on which is exempt
1
from federal income tax. The securities are
issued to raise funds for various public and private purposes. Municipal bonds include private
activity and industrial development bonds, tax anticipation notes and participations in pools of municipal securities.
“Sustainable” in the Fund’s name refers to the Fund’s strategy to invest in sustainable securities. Under normal circumstances, the Fund invests at least 80% of its Assets in
sustainable municipal securities as determined under the adviser’s investment process (the
Sustainable 80% Policy). For purposes of the Sustainable 80% Policy, sustainable municipal securities are defined by the adviser as municipal bonds (as described above) whose use of proceeds, in the adviser’s
opinion, provide positive social or environmental benefits. This policy may be changed by the
Board of Trustees without shareholder approval. However, the Fund will provide shareholders with written notice at least 60 days prior to a change in its Sustainable 80% Policy.
The adviser uses the use of proceeds process described below to identify investments for the Fund, other than
its investments in derivatives, cash and cash equivalents. The adviser has determined that bonds
that finance affordable housing, healthcare, municipal water and sewer, education, mass transit,
and issuer designated green bonds promote positive social or environmental benefits for purposes
of the Sustainable 80% Policy. In addition to the types of sustainable municipal securities noted
above, the adviser may identify additional types of bonds and uses of bond proceeds that it believes will provide positive social or environmental benefits for purposes of the Sustainable 80% Policy. In order to identify and
invest in other types securities that provide positive social or environmental benefits for
purposes of the Sustainable 80% Policy, the adviser determines and assesses such security’s intended use of proceeds. Compliance with the Fund’s 80% Sustainable Policy is determined based on the security’s
characteristics at the time of purchase. If the use of proceeds of a security changes after the
time of purchase so as to no longer provide positive social and/or environmental benefits, the
Fund may continue to hold the security. Up to 20% of the Fund’s Assets may be invested in
cash and cash equivalents, derivatives, and investments that the adviser has not determined
provide social or environmental benefits.
The Fund may invest up to 20% of its total assets in securities rated below investment grade. Such securities are known as “junk bonds,” “high yield
bonds” and “non-investment grade 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. 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. 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, following the time of purchase, they would be
deemed to be below investment grade. If the quality of an investment grade security is downgraded
subsequent to purchase to below investment grade, the Fund may continue to hold the security.
As a matter of fundamental policy, the Fund will not invest more than 25% of its total assets: (i) in
securities within a single industry; or (ii) in securities of governmental units or issuers in
the same state, territory or possession.
However, from time to time, the Fund will invest more than 25% of its total assets in municipal
housing authority obligations.
The Fund’s average weighted maturity will range from three to
15 years, although the Fund may shorten its average weighted maturity to as little as two years
if appropriate for temporary defensive purposes. Average weighted maturity is the average of all
the current maturities (that is, the term of the securities) of the individual bonds in a 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 a 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 Fund may also invest in zero-coupon securities.
Investment Process: The adviser buys and sells securities and investments for the Fund based on its view of individual securities and market sectors. Taking a long-term
approach, the adviser looks for individual fixed income investments that it believes will perform
well over market cycles. The adviser is value oriented and makes investment decisions after performing a risk/reward analysis that includes an evaluation of interest rate risk, credit risk, duration, liquidity,
any security pledge, and a review of the security’s attributes such as the coupon, maturity
and any redemption and tender provisions. The adviser’s risk/reward analysis along with its use of proceeds process allows the adviser to collectively evaluate those criteria when selecting securities for
purchase.
The adviser utilizes a proprietary framework to monitor the portfolio’s overall investment in bonds that have been designated as providing positive social or
environmental benefits. Through the framework, the adviser assesses characteristics of bond
issuances and their proceeds using third party data and/or internal research. The proprietary framework, as well as the adviser’s views on municipal bond use of proceeds, are periodically reviewed
internally.
Generally, the adviser determines whether or not to sell a security by looking at a number of factors such as the security’s attributes (e.g., coupon, maturity and
redemption/tender provisions), liquidity, relative value and the credit quality of the security.
The adviser also factors in the overall investment strategy of the Fund, including its positioning relative to the benchmark, its duration and its credit strategy, as well as the adviser’s interest rate
outlook.
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.
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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 mainly invests in bonds and other debt securities. These securities will increase or decrease in
value based on changes in 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.
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.
Social or Environmental Investing Risk. The Fund’s investment in securities whose use of proceeds, in the adviser’s opinion, provide positive social or environmental benefits could cause it to perform differently compared to funds that
do not have such a policy. Investing in securities whose use of proceeds, in the adviser’s
opinion, provide positive social or environmental benefits may result in the Fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities when it might be
otherwise disadvantageous for it to do so. In addition, there is a risk that the municipal bonds
identified by the adviser’s use of proceeds determination do not operate as expected when addressing positive social or environmental benefits. The adviser’s assessment of the positive social or
environmental impact of a municipal bond’s proceeds is made at the time of purchase and the
actual use of proceeds by the issuer could vary over time, which could cause the Fund to be invested in bonds that do not comply with the Fund’s approach towards considering social or
environmental characteristics. The factors that the adviser considers in evaluating whether a security has positive social or environmental benefits may change over time.
There are significant differences in interpretations of what it means to promote positive social
or environmental benefits. While the adviser believes its definitions are reasonable, the portfolio
decisions it makes may differ with other’s views. In making investment decisions, the
adviser relies on information and third-party data that could be incomplete or erroneous, which
could cause the adviser to incorrectly assess a municipal bond’s positive social or
environmental impact.
Municipal Housing Authority Obligations Risk. The Fund may invest more than 25% of its total assets in municipal housing authority obligations. As a result, the Fund could be more susceptible to developments which affect those
obligations.
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. These
securities are also subject to prepayment and call risk. In periods of 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. Additionally,
asset-backed, mortgage-related and mortgage-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
asset-backed, mortgage-related and mortgage-backed securities may face valuation difficulties and
may be less liquid than other types of asset-backed, mortgage-related and mortgage-backed securities, or debt securities.
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.
3
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 in 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.
High Yield Securities Risk. The Fund may invest in securities and instruments of municipal issuers that are highly leveraged, less creditworthy or financially distressed. These investments (also 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.
No active trading
market may exist for some instruments and certain investments may be subject to restrictions on resale. The inability to dispose of the Fund’s securities and other investments in a timely fashion could result
in losses to the Fund. Because some instruments may have a more limited secondary market,
liquidity and valuation risk may be more pronounced for the Fund. When instruments are prepaid, the Fund may have to reinvest in instruments with a lower yield or fail to recover additional amounts (i.e., premiums) paid for
these instruments, resulting in an unexpected capital loss and/ or a decrease in the amount of
dividends and yield.
Zero-Coupon Bond Risk. The market value of a zero-coupon bond is generally more volatile than the market value of other fixed income securities with similar maturities that pay interest
periodically. In addition, federal income tax law requires that the holder of a zero-coupon bond accrue a portion of the discount at which the bond 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 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, the 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.
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
4
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.
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.
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 Sustainable Municipal Income Fund (the predecessor fund), were transferred to the Fund
in a tax-free reorganization as of the close of business on July 14, 2023. The Fund has the same
investment objective and substantially similar investment strategies as those of the predecessor
fund. Updated performance information is available by
visiting www.jpmorganfunds.com or by calling 1-844-457-6383 (844-4JPM ETF).
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 Bloomberg US Municipal Index and Bloomberg U.S. 1-15 Year Blend (1-17)
Municipal Bond Index. The performance of the Class R6 Shares of the predecessor fund prior to their inception are based on Class I Shares. The actual returns of the predecessor fund’s Class R6 Shares would be
substantially similar to the performance of Class I Shares because the predecessor fund is
invested in the same group of securities and the annual returns would differ only to the extent
that the classes do not have the same expenses. 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. 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.
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 |
6.35% |
| Worst Quarter |
1st quarter, 2022 |
-5.74% |
| The Fund’s year-to-date total return |
through |
3/31/24 |
was |
0.18% |
. |
5
| AVERAGE ANNUAL TOTAL RETURNS
(For periods ended December 31, 2023) |
|||
| |
Past
1 Year |
Past
5 Years |
Past
10 Years |
| SHARES |
|
|
|
| Return Before Taxes |
5.45 % |
1.74 % |
2.27 % |
| Return After Taxes on Distributions |
4.76 |
1.60 |
2.11 |
| Return After Taxes on Distributions and Sale of Fund Shares |
3.95 |
1.80 |
2.29 |
| BLOOMBERG U.S. 1-15 YEAR BLEND (1-17) MUNICIPAL BOND INDEX1 (Reflects No Deduction for Fees, Expenses, or Taxes) |
5.26 |
2.17 |
2.58 |
| BLOOMBERG US MUNICIPAL INDEX1 (Reflects No Deduction for Fees, Expenses, or Taxes) |
6.40 |
2.25 |
3.03 |
1
Effective 7/1/24 the Fund’s Benchmark changed from Bloomberg U.S.1-15 Year Blend (1-17) Municipal Bond Index to Bloomberg US Municipal Index because the adviser believes that the
Bloomberg US Municipal Index is a more appropriate comparison of the Fund’s investment strategies.
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.
Management
J.P.
Morgan Investment Management Inc. (the adviser)
| Portfolio Manager |
Managed the Fund Since |
Primary Title with
Investment Adviser |
| Michelle Hallam |
2024 |
Managing Director |
| Rachel Betton |
2023 |
Managing Director |
| Curtis White |
2024 |
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.
6
SPRO-SMI-ETF-724