J.P. Morgan Asset Management launched the JPMorgan International Dynamic ETF (JIDE) Wednesday, adding an actively managed international equity strategy to a product lineup that has grown to see the firm become the world’s largest active ETF issuer.
JIDE targets the $2 trillion foreign large blend category, investing in large- and midcap stocks across developed markets outside North America including Japan, the United Kingdom and Western Europe, according to a press release. The launch reflects growing investor interest in international diversification and JPMorgan’s continued expansion of active ETF strategies beyond its flagship covered call products.
“JIDE is designed to give investors a dynamic edge in the Foreign Large Blend category, which is a vital building block for many U.S. investors now increasing global diversification,” Travis Spence, global head of ETFs at J.P. Morgan Asset Management, said in the release.
The fund holds 118 positions with sector allocations weighted toward financials at 24% of assets, industrials at 15.7% and consumer discretionary at 11.4%, according to J.P. Morgan. European, Middle Eastern and African markets represent 66.6% of holdings, while Japan accounts for 23.6%. Asia excluding Japan makes up 9.9%.
JIDE’s portfolio mirrors the MSCI EAFE Index universe in terms of market capitalization but employs active management to select securities, according to the release. The fund is not constrained by any particular style or sector.
The international equity portfolio management team led by Jon Ingram manages the fund alongside portfolio managers with more than 60 years of combined investing experience, according to the release.
JPMorgan’s Active ETF Business
The launch expands JPMorgan’s active ETF offerings beyond covered call strategies into traditional active equity management. The JPMorgan Equity Premium Income Fund (JEPI), which sells call options on equity holdings to generate income, has grown to $43.03 billion in assets under management, according to ETF Database.
JPMorgan also offers the JPMorgan International Research Enhanced Equity ETF (JIRE), an international developed markets strategy, with $9.95 billion in assets, according to ETF Database. The JPMorgan Active Growth ETF (JGRO), a growth-focused strategy investing primarily in U.S. large- and midcap companies, holds $8.56 billion.
JIDE trades on NYSE Arca and charges a 55 basis point net expense ratio, according to the release. J.P. Morgan Asset Management oversees $4.2 trillion in assets as of December 31.
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