J.P. Morgan Chase (NYSE: JPM), the venerable Wall Street bank, and Global X, the exchange traded funds issuer known for its lineup of unique income and international funds, are partnering on two new tactical ETFs due out Thursday.
The Global X/JPMorgan U.S. Sector Rotator Index ETF and the Global X/JPMorgan Efficient Index ETF are expected to list on the New York Stock Exchange with objective of competing with the rapidly growing managed ETF portfolios industry.
A managed ETF portfolio is one that invests at least half of the assets in ETFs. The overall popularity of ETF managed portfolios is attributed to the growth in the ETF business, but investors are increasingly interested in an alternative strategy that has a traditional core. [The Rise of ETF Managed Portfolios]
“The Global X/JPMorgan US Sector Rotator Index ETF itself will hold other sector stock ETFs. Monthly buy and sell signals are determined by an index devised by J.P. Morgan,” reports Chris Dieterich for the Wall Street Journal.
The other ETF the firms are partnering on, the Global X/JPMorgan Efficient Index ETF, will track a J.P. Morgan index “that regularly shifts ETF holdings based on market momentum and volatility signals. It can allocate between holdings across assets including global stocks, bonds, commodities and real estate,” according to the Journal.