As more advisors look for new ways to improve market exposure, many have turned to innovative strategic beta indexing methodologies that incorporate actively managed investment styles in a cheap, efficient exchange traded fund wrapper.
On the upcoming webcast, Smart ETF Strategies for Building Stronger Portfolios, Yasmin Dahya, Executive Director of J.P. Morgan Asset Management, Taylor Ranney, Client Portfolio Manager at J.P. Morgan Asset Management, Samantha Azzarello, Vice President and Global Market Strategist at J.P. Morgan Asset Management, and Jack Hannah, Managing Director of Geowealth, will delve into factor-based investment strategies and consider ways to help advisors incorporate new investment opportunities to potentially enhance a diversified portfolio.
For example, J.P. Morgan offers a suite of Diversified Return Equity ETFs, including the JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEArca: JPEM), JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE), JPMorgan Diversified Return US Equity ETF (NYSEArca: JPUS), JPMorgan Diversified Return Europe Equity ETF (NYSEArca: JPEU), JPMorgan Diversified Return Europe Currency Hedged Equity ETF (NYSEArca: JPEH), JPMorgan Diversified Return International Equity ETF (NYSEArca: JPIN) and JPMorgan Diversified Return International Currency Hedged Equity (NYSEArca: JPIH).
These multi-factor ETFs provide advisors and investors direct access to hedge fund exposure inside an ETF vehicle. The underlying indices diversify risks that are less likely to be rewarded while overweighting areas that are more likely to produce positive results.
The underlying customized FTSE Russell index selects components based on a diversified set of factor characteristics, such as relative valuation, price momentum and quality. The enhanced indexing process would allow the ETFs to exclude expensive, low quality companies with poor momentum, which could help the ETFs diminish drawdowns without sacrificing too much from any potential upside of a market recovery.
Investors can take a look at the evolving ETF industry where factor-based investments could help better manage the risk premium. The strategic beta solutions could neutralize some risks, better diversify a portfolio and potentially generate improved risk-adjusted returns over the long haul.
Financial advisors who are interested in learning more about factor-based, smart beta strategies can register for the Tuesday, April 18 webcast here.