J.P. Morgan Rolls Out Its First Active ETF Strategy

Exchange traded fund investors can now gain exposure to J.P. Morgan’s extensive management experience through its first active ETF that covers various alternative strategies taken from tested hedge fund plays.

On Wednesday, J.P. Morgan launched the JPMorgan Diversified Alternatives ETF (NYSEArca: JPHF). JPHF has a total expense ratio of 0.85%.

JPHF was designed and is managed by Yazann Romahi, Global Head of Quantitative Beta Solutions at J.P. Morgan Asset Management. The  Diversified Alternatives ETF strategy was created by Romahi along with the support of a team of 17 investment specialists focused on beta philosophy research and development for over a decade.

“Since 2005, we’ve had a team dedicated to researching and developing a leading alternative beta capability and we are thrilled to adapt this strategy for a new investment wrapper,” Romahi said in a press release. “JPHF helps to increase diversification, reduce overall portfolio volatility and deliver higher portfolio risk-adjusted returns.”

The new fund will incorporate institutional quality hedge fund strategies in a cost efficient ETF wrapper.

“In the past, alternative investments have been an exclusive option only accessible by a small portion of investors; however, JPHF now makes these investment vehicles available to a wider array of investors,” Robert Deutsch, Head of ETFs for J.P. Morgan Asset Management, said. “Alternative beta strategies provide investors with true diversification with attractive liquidity, transparency and cost.”