J.P. Morgan Aims For Equity Upside, Less Volatility With New ETF | ETF Trends

J.P. Morgan Asset Management jumped into the exchange traded fund industry with smart-beta global offerings, and now, the money manager is starting to fill out its domestic exposure with a new broad U.S. equity ETF.

According to a press release, the JPMorgan Diversified Return US Equity ETF (NYSEArca: JPUS) began trading Wednesday. The new ETF has a net expense ratio of 0.29%.

JPUS tries to reflect the performance of the Russell 1000 Diversified Factor Index, which is comprised of U.S. stocks taken from the Russell 1000 index and selects components based on a diversified set of factor characteristics, such as relative valuation, price momentum and quality. Additionally, securities are diversified across industries. The underlying index may also utilize up to 20% of its assets in exchange traded futures to better track the underlying index.

Through its multi-factor indexing methodology, JPUS could provide better risk-adjusted returns than the broader large-cap benchmark. Specifically, its its enhanced indexing process would allow the ETF to exclude expensive, low quality companies with poor momentum.