JPMorgan's latest stock-pick refresh is pointing investors toward a broader trade than the crowded AI names that have dominated 2026, and ETFs offer a way to play the themes without betting on a single stock.
The bank added American Express Co. (AXP), Liberty Energy Inc. (LBRT) and Thermo Fisher Scientific Inc. (TMO) to its October favorites, with all three carrying overweight ratings. The selections span value, energy and health care, suggesting a more diversified approach as the fourth quarter gets underway.
American Express Brings Value Back into Focus
American Express fell 18% year to date, but JPMorgan sees the weakness as an opportunity. Analyst Richard Shane cited the company's strong returns and consistent capital returns, including dividends and annual share repurchases.
Investors looking for ETF exposure can turn to the Vanguard Financials ETF (VFH), where American Express accounted for 1.87% of assets in the latest holdings data, making it a relatively small position while giving investors exposure to banks, insurers, payments companies and other financial firms.
The Financial Select Sector SPDR Fund (XLF) offers a more concentrated financial-sector bet. AXP represents 2.11% of the fund, while JPMorgan Chase & Co (JPM), Visa Inc. (V) and Mastercard Inc. (MA) were among its largest holdings.
The broader value trade is also relevant. JPMorgan's AXP call comes as investors look beyond high-multiple growth stocks toward companies with cash returns and more reasonable valuations.
The AI Trade Is Moving into Power
Liberty Energy may offer the most unusual ETF angle.
The stock has gained 54% over the past year as its power-generation business benefits from surging electricity demand from data centers. JPMorgan expects the behind-the-meter power market to remain structurally tight through 2030, according to BeInCrypto.
The VanEck Oil Services ETF (OIH) provides a more direct ETF route, with Liberty Energy representing 2.41% of the portfolio. That makes OIH an intriguing way to capture part of the energy-services side of the AI infrastructure buildout.
State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) is also relevant. XES is designed to provide targeted exposure to oil-and-gas equipment and services companies and tracks a modified equal-weighted index, giving investors exposure across large-, mid- and small-cap names. The fund held 35 stocks and had about $398 million in assets, with a 0.35% expense ratio in the latest available data.
More importantly for JPMorgan's thesis, Liberty Energy accounts for about 3.5% of XES, a decently significant weightage. XES also holds companies such as Baker Hughes (BKR), Halliburton Co. (HAL), SLB NV (SLB) and Weatherford International plc (WFRD), giving investors a diversified way to play demand for energy equipment and services rather than making a single-stock bet.
Health Care Adds Another Rotation Trade
Thermo Fisher has gained 14.3% year to date and more than 25% over the past three months. JPMorgan sees additional upside from AI adoption and U.S. biopharma reshoring.
The Health Care Select Sector SPDR Fund (XLV), with TMO accounting for roughly 4% of the ETF, provides a broader way to play that theme, combining exposure to pharmaceutical, biotechnology, medical-device and health care-equipment companies.
Together, the three picks suggest JPMorgan is looking beyond the most crowded and obvious AI trades. For ETF investors, the message is broader: value, power infrastructure and health care could offer alternative routes into the next leg of the market rally.
