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Any thoughts on BBUS / BBUD

Index tracking funds and ETFs
sanityclaws
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Any thoughts on BBUS / BBUD

#236951

Postby sanityclaws » July 16th, 2019, 9:23 am

Does anybody have any thoughts about, or experience with, these (JP Morgan ICAV Betabuilder US Equities)? I am looking to increase my investment in US trackers & already have quite a bit of VUSA (and other regional Vanguard ETFs) & CSP1 (Ishares S& P Ucits ETF).

Main attractions of BBUS (the acc version) or BBUD is the low OCR - 0.04 & (very small) diversification away from S & P 500 - they appear to track Morningstar US Target Market Exposure Index (not an index I know much about - but seems to be have on Tech, Financial Services & Healthcare). They are, however very new (April 2019 I believe) - so currently small & no back history.

hiriskpaul
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Re: Any thoughts on BBUS / BBUD

#237021

Postby hiriskpaul » July 16th, 2019, 3:34 pm

Product page for BBUS:

https://am.jpmorgan.com/gb/en/asset-man ... 00bjk9h753

Just had a quick look and it seems ok. Has reporting status, so ok outside tax shelters, seems to be physically replicated (628 holdings) and domiciled in Ireland. BBUS is the USD denominated share class, but a GBP version is available (BBSU). Small bid/ask thread as well.

No clue yet about the index, but should not necessarily be a problem that it does not follow the S&P. I hold Vanguard's US listed ETF VTI, which follows a much broader index, but the performance has been very close to the S&P5OO. At the time I initially invested VTI had lower fees than any S&P 500 ETF and holds more holdings (more medium to small caps). JPM perhaps can offer at a lower fee because the index provider has a lower fee.

hiriskpaul
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Re: Any thoughts on BBUS / BBUD

#237024

Postby hiriskpaul » July 16th, 2019, 3:58 pm

Checked platform support and can find at iWeb (Halifax), DEGIRO and Youinvest. Not yet available at HL or IG. Most likely they will add when someone requests.

hiriskpaul
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Re: Any thoughts on BBUS / BBUD

#237102

Postby hiriskpaul » July 16th, 2019, 8:38 pm

On the other hand, the huge and more established iShares core S&P 500 ETFS have an OCF of 7bps and generate 1bps through stock lending, so a difference of only 2bps. That's £20 on each £100k of investment. Good to see competition, but I will not be rushing to swap out of my iShares ETFS for such a small fee saving.

sanityclaws
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Re: Any thoughts on BBUS / BBUD

#237185

Postby sanityclaws » July 17th, 2019, 8:52 am

Thanks hiriskpaul,
I am beginning to think that an investment in SPDR SPY4 might be a better way of increasing investment in the US markets whilst diversifying my existing holdings of VUSA & CSP1 - albeit at higher OCR


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