Financials giant J.P. Morgan Asset Management plans to expand its exchange traded fund line up, filing with the Securities and Exchange Committee to launch a “smart-beta” index strategy.
According to the SEC filing, the JPMorgan Global Equity ETF will try to track an index comprised of equity securities from developed global markets based on a “multi-factor” investment selection process.
The factors include a combination of attractive relative valuation, positive price momentum, low volatility and specific market capitalization.
In comparison, the majority of traditional beta-index equity ETFs follow a market-capitalization methodology, holding a larger weight to the biggest companies in the respective market or sector.