J.P. Morgan Asset Management has expanded on its push into liquid alternative ETF strategies with a new option to provide exposure to carry and momentum factors across fixed-income, currency, commodity and equity markets.
On Thursday, J.P. Morgan launched the actively managed JPMorgan Managed Futures ETF (NYSEArca: JPMF), which has a 0.59% expense ratio.
JPMF is led by Dr. Yazann Romahi, CIO of Quantitative Beta Strategies and Portfolio Manager at J.P. Morgan Asset Management, along with Wei (Victor) Li, Joe Staines and Albert Chuang of the J.P. Morgan Investment Management team.
The Managed Futures Strategy ETF will try to generate long-term total return by investing globally to exploit opportunities across a broad range of asset classes including, but not limited to, equities, fixed income, currency and commodities based on the adviser’s assessment of their attractiveness, according to a prospectus sheet. The managers will focus on investment return sources that have a low correlation to each other and to traditional markets.
The managers will focus on various return factors, including momentum or capture the tendency that an asset’s recent performance based on its price will continue in the near future, and carry trades or take a short position in a low yielding instrument while also taking a long position in another instrument that is higher yielding.