As the current bull market charges on, more investors are implementing a range of factor-based investment strategies to build a stronger, diversified portfolio.
On the upcoming webcast, 4th Quarter Factor Views: Understanding Today’s Market, Samantha Azzarello, Vice President, Global Market Strategist for J.P. Morgan Asset Management; Joe Staines, Research Analyst and Portfolio Manager at J.P. Morgan Asset Management; and Anthony Caruso, Beta Specialist Associate for J.P. Morgan Asset Management, will look at various factor strategies that can help target specific exposures and investment outcomes to prepare for possible changes in market conditions ahead.
When considering factor-based investments or smart beta ETF strategies, investors may take broad strokes that cover multiple investment factors for a diversified approach or pick and choose individual factor exposures.
For example, J.P. Morgan has come out with a line of U.S. smart beta ETFs, including broad strategies like the JPMorgan Diversified Return US Equity ETF (NYSEArca: JPUS), along with single-factor strategies, including the J.P. Morgan U.S. Value Factor ETF (NYSEArca: JVAL), J.P. Morgan U.S. Quality Factor ETF (NYSEArca: JQUA), J.P. Morgan U.S. Momentum Factor ETF (NYSEArca: JMOM), J.P. Morgan U.S. Minimum Volatility ETF (NYSEArca: JMIN) and J.P. Morgan U.S. Dividend ETF (NYSEArca: JDIV).
The U.S. Value Factor ETF is designed to provide exposure to attractively priced stocks. JVAL tries to reflect the performance of the J.P. Morgan U.S. Value Factor Index, which is comprised of U.S. securities included in the Russell 1000 Index and selects constituents based on diversified measures of their valuation.
The U.S. Quality Factor ETF is designed to provide exposure to high quality companies. JQUA tries to reflect the performance of the J.P. Morgan U.S. Quality Index, which is comprised of U.S. securities included in the Russell 1000 Index and selects constituents based on their quality as measured by profitability, solvency and earnings quality.
The U.S. Momentum Factor ETF is designed to provide exposure to trending stocks. JMOM tries to reflect the performance of the J.P. Morgan U.S. Momentum Factor Index, which is comprised of U.S. securities included in the Russell 1000 Index and selects constituents based on risk-adjusted return momentum.
The U.S. Minimum Volatility ETF is designed to provide equity exposure with reduced volatility. JMIN tries to reflect the performance of the J.P. Morgan U.S. Minimum Volatility Index, which is comprised of U.S. securities included in the Russell 1000 Index and uses a rules-based risk allocation and stock selection process to deliver lower volatility while maintaining diversification across sectors and securities.
Lastly, the U.S. Dividend ETF is designed to provide equity exposure with emphasis on dividend income. JDIV tries to reflect the performance of the J.P. Morgan U.S. Dividend Index, which is comprised of U.S. securities included in the Russell 1000 Index and uses a rules-based risk allocation and stock selection process to deliver high dividend yield while maintaining diversification risk across sectors and securities.
Financial advisors who are interested in learning more about factor investment can register for the Tuesday, October 8 webcast here.