J.P. Morgan Asset Management added to its BetaBuilders suite on Tuesday with the launch of the JPMorgan BetaBuilders U.S. Small Cap Equity ETF (BBSC).
BBSC is designed to provide exposure to the small cap U.S. equity market using an indexed approach. The fund seeks investment results closely corresponding to the Morningstar US Small Cap Target Market Exposure Extended Index. The Index is a free-float adjusted, market-cap weighted index that targets small cap securities traded in the U.S. Using a “passive” investment approach, the fund attempts to replicate the Index as closely as possible.
As seen over the past year, the BetaBuilders suite features market-cap weighted ETFs for J.P. Morgan that are low-cost portfolio building blocks focused on core and tactical holdings across key sectors worldwide.
So what does that say about this new fund? ETF Trends spoke with Bryon Lake, Head of Americas Client ETF, J.P. Morgan Asset Management, about the launch of BBSC. He explains how the new fund is coming along within a good position to find success and the other funds in the suite.
“One of the advantages we have is that we’ve been building up our ETF capabilities now for over six years,” Lake states, “And where I think J.P. Morgan is uniquely positioned is in BetaBuilders, which has the ETF wrapper. So, it’s just another way of showing our breadth of capabilities on our platform where we can go the full spectrum.”
Lake adds, “The way that we construct these in a thoughtful, high-quality way, but then position them well in the marketplace is really why that BetaBuilders suite has been so thoughtful. We do have an advantage in knowing how others are positioned and price, so we’re able to be intentional about our product launches and position ourselves in that way.”
Building up the BetaBuilders
On the fund, Lake states that “BBSC is really just the continuation of the buildout of our BetaBuilder capabilities.”
In terms of what the fund can add at this point, Lake notes how they are working with investors that are building portfolios, so anytime they can deploy the efficient exposure of BBSC to pick up their small cap exposure at an attractive price point, it is going to help them build a better portfolio for their clients.
Considering the mega tech names with incredible runs, areas like small cap could still play an important role. As Lake states, “When using an ETF in that space, you get diversified exposure, and broader participation in that space in one ticker, which can be particularly helpful.
Head to J.P. Morgan’s website for more information.
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