Both ETFs follow a rules-based, multi-factor indexing methodology that picks out stocks based on characteristics like relative valuation, price momentum, low volatility, and specific market capitalization. In contrast, traditional beta-index ETFs weight component holdings based on market-capitalization where the largest stocks by assets have the biggest weight in the index. [JPMorgan Eyes ‘Smart-Beta’ Developed Global ETF]
Most investors may also know JPMorgan for its exchange traded note offering. The JPMorgan Alerian MLP Index ETN (NYSEArca: AMJ) is the largest ETN on the market with $6.4 billion in assets under management. However, ETNs are not ETFs since the notes are a type of debt security that is exposed to the credit worthiness of the underwriting bank. [ETNs Target Sophisticated Investors]
For more information on new fund products, visit our new ETFs category.
Max Chen contributed to this article.