Today, J.P. Morgan announced in a press release the expansion of their Active Equity Suite with the addition of the JPMorgan Active Value ETF (JAVA), a transparent and actively managed fund that falls within the J.P. Morgan Global Equities platform.
The fund invests primarily in large-cap equities using a bottom-up approach to select stocks that have an attractive value base and the potential for capital appreciation. J.P. Morgan employs quantitative and proprietary screenings that analyze the fundamentals of the companies.
“JAVA supports the commitment to our growing active ETF suite by offering clients another tool that goes beyond the index to help investors avoid unprofitable and overvalued companies in the current environment,” said Bryon Lake, global head of ETF solutions at J.P. Morgan Asset Management. “We are excited to be combining complementary Large Cap Value platform managers with a strong track record and deep experience to deliver the best of active and the best of value investing at an attractive price point.”
The fund has four comanagers, including Clare Hart, who has been previously named one of Barron’s “100 Most Influential Women in U.S. Finance,” and the portfolio management team consists of over 20 U.S. equity career analysts.
JAVA invests in companies whose market caps are similar to those contained within the Russell 1000 Value Index, ranging from $742 million to $1.95 trillion. It invests in equities that the advisor believes to be undervalued given the growth potential over a longer time period, and it also invests in real estate investment trusts (REITs) and derivatives.
The managers of the portfolio leverage the advisor’s large-cap value strategy along with their U.S. value strategy to create the portfolio. Part of the investment process also includes evaluating ESG factors such as tax policies, shareholder rights, and more for security and the impacts they may have on cash flow.
As of launch, the top sector allocations were financials at 25.1%, healthcare at 15.0%, and industrials at 14.2%.
The fund has an expense ratio of 0.44%.
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