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HEAD-TO-HEAD: JP Morgan versus T Rowe Price
FSA compares two technology equity products: the JP Morgan US Technology Fund and the T Rowe Price Global Technology Equity Fund.
Investment approach
Both the JP Morgan and T Rowe funds provide investors with exposure technology-focused equities and therefore investors should expect the funds to be growth-oriented, according to McDermott.
However, there are several differences between the two products.
One of the biggest differences is market exposure, McDermott said. The JP Morgan fund has nearly all of its assets invested in the US market, while the T Rowe Price has a more global remit.
|
Market exposure |
||
| Country |
JP Morgan |
T Rowe Price |
| North America |
93.59% |
74.1% |
| China |
– |
13.5% |
| Netherlands |
– |
5.9% |
| South Korea |
– |
3.7% |
| Taiwan |
– |
1.4% |
| Argentina |
– |
1.2% |
| Canada |
– |
0.2% |
| Europe developed |
1.67% |
– |
| Africa/Middle East |
0.63% |
– |
| Asia emerging |
2.66% |
– |
| Latin America |
1.45% |
– |
Source: JP Morgan data from Morningstar Direct (as of 30 Sept 2019), T Rowe data from fund factsheet (as of 31 Oct 2019).
Although 75% of the T Rowe fund’s assets are invested in the US, three of the product’s top 10 holdings are non-US: Alibaba and Tencent in China and ASML Holding in the Netherlands.
Top 10 holdings
|
JP Morgan |
T Rowe Price |
||
| Synopsys |
4% |
Alibaba Group |
9.8 |
| Microsoft |
3.5% |
9.2% |
|
| Analog Devices |
3.1% |
Salesforce.com |
8.4% |
| PayPal |
2.7% |
Intuit |
5.6% |
| Marvell Technology |
2.6% |
Netflix |
4.7% |
| Salesforce.com |
2.6% |
Amazon.com |
4.5% |
| Service Now |
2.6% |
Service Now |
4.4% |
| Match Group |
2.5% |
Workday |
4.3% |
| Booz Allen Hamilton |
2.4% |
ASML Holding |
3.9% |
| Advanced Micro Devices |
2.3% |
Tencent Holdings |
3.7% |
| Top 10 total |
24.3% |
Top 10 total |
48.7% |
Source: Fund factsheets (as of 31 Oct 2019)
Portfolio concentration is also different between the two products, according to McDermott.
The JP Morgan fund is more diversified with around 63 holdings, while the T Rowe product is more concentrated with 39 stocks. He also noted that the T Rowe fund’s top 10 holdings account for nearly 50% of the portfolio, which compares to just 24.3% of JP Morgan’s top 10.
The diversification has also resulted in differences in market cap exposure, with the JP Morgan fund having more assets invested in medium-sized companies.
| Market cap |
JP Morgan |
T Rowe Price |
| Giant |
24.65% |
59.01% |
| Large |
38.45% |
22.53% |
| Mid |
31.27% |
13.09% |
| Small |
2.47% |
1.03% |
| Micro |
– |
– |
Source: Morningstar Direct
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