Moreover, JPGE takes on a more equal-weighted sector position. The J.P. Morgan ETF’s top sectors include consumer goods, consumer services and health care at about 12% each. In contrast, ACWI overweights financials at 21.3% of its portfolio. The
The smart-beta indexing methdology also pushes down JPGE’s market-capitalization exposure to include slightly more nimble mid-sized companies. Specifically, JPGE has a 39.6% weight toward medium-cap stocks and 19.3% in mega-caps, whereas the benchmark MSCI ACWI index includes 52.6% in mega-caps and 12.8% in mid-caps.
For those who have enough U.S. exposure, the recently launched JPMorgan Diversified Return International Equity ETF (NYSEArca: JPIN) tracks the similar methodology a JPGE, except JPIN reflects the performance of the FTSE Developed ex-North America Diversified Factor Index, which excludes U.S. and Canadian stocks. JPIN began trading Friday, November 7.
Financial advisors who are interested in learning more about strategic-beta or smart-beta ETFs can register for the Tuesday, November 11 webcast here.