ETF Spotlight on the JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE), part of an ongoing series.
Assets: $25.2 million
Objective: The JPMorgan Diversified Return Global Equity fund tries to reflect the performance of the FTSE Developed Diversified Factor Index, which screens and ranks them by value, size, momentum and low volatility factors.
Holdings: Top holdings include DBS Group 0.5%, CSL Limited 0.5%, Woolworths 0.5%, Posco 0.5% and Wesfarmers 0.5%.
What You Should Know:
- J.P. Morgan Asset Management sponsors the fund.
- JPGE has a 0.38% expense ratio.
- The ETF has 479 holdings and the top ten components make up 4.8% of the overall portfolio.
- Sector allocations include basic materials 7.8%, consumer goods 11.3%, consumer services 12.0%, financials 9.4%, health care 11.7%, industrials 9.6%, oil & gas 8.4%, technology 9.0%, telecom 9.6% and utilities 10.0%.
- Large country allocations include Australia 9.5%, Hong Kong 3.9%, Korea 7.5%, Singapore 3.2%, France 3.0%, Germany 2.9%, Spain 1.8%, Sweden 2.2%, Switzerland 2.0%, U.K. 3.5%, Japan 23.%, Canada 3.7% and U.S. 25.7%.
- The fund began trading June 16, 2014.
- JPGE is up 0.1% since inception and is up 1.7% over the past month.
- The ETF is designed to provide core global equity exposure.
- Through the fund’s top-down risk allocation methodology, the investment tries to equally distribute portfolio risk across 40 regional sectors.
- Top regional sectors include North America utilities 3.6%, Japan consumer services 3.5%, North America consumer goods 3.5%, North America health care 3.5%, North America telecom 3.4%, Japan health care 3.3%, Asia ex-Japan financials 3.2%, North America consumer services 3.1%, Asia ex-Japan consumer services 3.0% and Europe health care 3.0%.
Next page: The latest news
The Latest News:
- Global stocks are largely lower amid concerns on the U.S. interest rate outlook, weak Chinese growth and Scotland independence vote, Fox Business reports.
- Two San Francisco Fed economists stated that the public believes the Fed will maintain the near-zero rate policy for longer than Fed board members.
- With the Fed Open Market Committee announcement due next week, the markets may be overlooking potential risks that the central bank could hike rates sooner-than-anticipated.
- In China, manufacturing activity declined in August while imports unexpectedly shrank 2.4%, reflecting a slowdown in domestic demand.
- “Global equities have retreated with the wall of worry across major economies sending investors into a cautious mode. There are a number of key issues plaguing sentiment at the moment, including a more hawkish Fed, a struggling China economy, the Scottish referendum and potential hiccups for the ECB’s stimulus plans,” strategist Stan Shamu of IG Markets said in a report.
- Meanwhile, markets were riled on the possibility that Scotland may sever ties with the United Kingdom in an independence vote next week.
JPMorgan Diversified Return Global Equity ETF
For past stories in this series, visit our ETF Spotlight category.
Max Chen contributed to this article.