Avantax Loads Up on JPEF With a $128M Stake in Q1

What happened

According to a recent SEC filing, Avantax Planning Partners, Inc. disclosed a new position in JPMorgan Equity Focus ETF (NASDAQ:JPEF), acquiring 1,787,833 shares during the first quarter of 2026. The estimated transaction value was $133.3 million, based on the average closing price during the first quarter. At quarter-end, the new stake was valued at $128.4 million, reflecting both the purchase and price fluctuations during the period.

What else to know

• This was a new position for Avantax Planning Partners, Inc., with JPEF representing 3.52% of its AUM as of March 31, 2026.
• Top five holdings after the filing:
  • NYSE: SCHG: $437.9 million (12.0% of AUM)
  • NYSE: SCHV: $311.6 million (8.6% of AUM)
  • NYSE: SCHF: $181.1 million (5.0% of AUM)
  • NYSE: SCHZ: $179.0 million (4.9% of AUM)
  • NYSE: SCHD: $169.0 million (4.6% of AUM)
• As of May 4, 2026, JPEF shares were trading at $77.88, up about 21% over the past year -- underperforming the S&P 500 by about 5 percentage points, while outperforming its Large Blend category benchmark by about 6 percentage points.

ETF overview

ETF snapshot

JPMorgan Equity Focus ETF is a large-cap equity ETF managed by J.P. Morgan, with approximately $1.7 billion in assets.

The fund’s investment strategy seeks to allocate at least 80% of assets to equity securities, primarily U.S. common stocks and REITs, with up to 20% to foreign equities, including depositary receipts.

What this transaction means for investors

Avantax Planning Partners opening a brand-new $128 million position in JPEF is worth a second look -- not because it signals a dramatic shift in strategy, but because of its size. At 3.5% of Avantax's total reportable AUM, JPEF now ranks as the firm's sixth-largest holding -- a meaningful allocation for a first-time position in any single fund.

So why JPEF? The ETF's focused approach -- leaning into U.S. large-cap stocks and REITs while maintaining some international flexibility -- makes it a reasonable complement to Avantax's existing lineup, which already skews heavily toward broad index funds. JPEF essentially adds another active layer of large-cap equity exposure, but with J.P. Morgan's stock-selection discipline baked in rather than pure passive indexing.

What makes this move particularly notable is that JPEF is the only actively managed fund among Avantax's six largest holdings. The other five -- all Schwab index ETFs -- are straightforward passive trackers. That makes JPEF a deliberate, high-conviction departure from what is otherwise a purely index-driven portfolio, suggesting that Avantax sees genuine value in J.P. Morgan's stock-selection approach. It's worth noting, though, that active management hasn't come without tradeoffs -- JPEF has trailed the S&P 500 by about 5 percentage points over the past year. However, it has also outperformed its Large Blend category benchmark by roughly 6 percentage points over the same period, suggesting J.P. Morgan's stock-picking has added value relative to its peers. For everyday investors, it's a worthwhile reminder that even broadly passive portfolios can carry targeted active bets -- and that a fund's performance is often best judged against its category, not just the S&P 500.

Bottom line: JPEF's 24.1% one-year price return and moderate 0.44% expense ratio make it a competitive option for investors seeking large-cap equity exposure with a bit more focus than a plain vanilla index fund.

Andy Gould has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.