J.P. Morgan Asset Management may be tardy to the single-factor, smart beta ETFd category, but the money manager’s new selection are some of the cheapest on the block.
On Thursday, J.P. Morgan launched 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), which each come with a 0.12% expense ratio.
The new single-factor, smart beta ETFs will track a customized indices based off the Russell 1000 Index and hold 200 to 400 components rebalanced on a quarerly basis.
“The introduction of single factor ETFs underscores our commitment to providing choice for our clients and bringing the best and most innovative products to market,” Joanna Gallegos, U.S. Head of ETFs for J.P. Morgan Asset Management, said in a note. “While we offer a breadth of solutions, single-factor funds allow clients to be more granular in their approach and customize their portfolios to meet distinct outcomes.”
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.