(BBRE) JPMorgan BetaBuilders MSCI - Overview

The JPMorgan BetaBuilders MSCI US REIT (BBRE) is an ETF that must allocate at least 80 % of its net assets to the constituents of its benchmark-a free-float-adjusted, market-cap weighted index that tracks U.S. equity REITs. The remaining 20 % of the portfolio may be placed in exchange-traded futures to replicate index performance, giving the fund modest flexibility while preserving a core exposure to the REIT sector.

Key up-to-date metrics (as of 30 Nov 2024):
• Expense ratio = 0.08 % (well below the industry average of ~0.35 % for U.S. REIT ETFs).
• Distribution yield ≈ 4.2 % annualized, reflecting the high-yield nature of REITs but also sensitivity to interest-rate moves.
• Assets under management ≈ $1.2 bn, indicating growing investor interest despite a modest size relative to larger peers (e.g., VNQ).
• Recent 12-month total return ≈ +9.5 % (incl. distributions), outperforming the MSCI US REIT Index’s +7.8 % over the same period, suggesting effective futures-based tracking.

Sector drivers to watch: the REIT market is currently pressured by the Federal Reserve’s policy stance-higher short-term rates have pushed up cap rates, compressing property valuations, while a gradual slowdown in office-space demand and mixed signals in the residential rental market create valuation dispersion across sub-sectors. Conversely, data-center and industrial REITs have benefited from sustained e-commerce and cloud-computing demand, offering relative resilience.

For a deeper, data-driven view of BBRE’s risk-adjusted performance and how its exposure aligns with macro trends, a quick look at ValueRay’s analytics can help you surface any hidden sensitivities before you commit capital.