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.
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Max Chen contributed to this article.