ETF Trends
ETF Trends

Financials giant J.P. Morgan Asset Management plans to expand its exchange traded fund line up, filing with the Securities and Exchange Committee to launch a “smart-beta” index strategy.

According to the SEC filing, the JPMorgan Global Equity ETF will try to track an index comprised of equity securities from developed global markets based on a “multi-factor” investment selection process.

The factors include a combination of attractive relative valuation, positive price momentum, low volatility and specific market capitalization.

In comparison, the majority of traditional beta-index equity ETFs follow a market-capitalization methodology, holding a larger weight to the biggest companies in the respective market or sector.

The company has not disclosed the underlying index, a ticker symbol or an expense ratio at this time.

The smart-beta, “fundamental” or “enhanced” indexing segment of the ETF industry has become has quickly expanded in recent years. There are now about 373 enhanced index-based ETFs with $157.6 billion in assets under management, according to XTF data.

For more information on new fund products, visit our new ETFs category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.