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

Specifically, JPHF will include equity long/short, event driven and global macro based strategies.

The equity long/short strategy involves simultaneously taking equities that are attractive based on relevant return factors and selling equities that are unattractive based on relevant return factors. The long/short strategy will try to produce alpha through exploiting pricing inefficiencies between equity securities through long and short positions.

The event driven strategy will try to profit from companies on the basis that a specific event or catalyst will affect future pricing. For example, merger arbitrage strategies try to capitalize on price discrepancies and returns in corporate transactions.

Lastly, the global macro based strategy tries to exploit macro economic imbalances across the globe. The strategy may be implemented through a number of asset classes, including stocks, bonds, currencies and commodities.

Essentially, the managing advisor will try to generate positive total returns over time while including a relatively low correlation to traditional markets.

For more information on new fund products, visit our new ETFs category.