Smart Beta ETFs Allow Money Managers to Bring Established Strategies to Market

As more money managers look to capitalize on the growing ETF space, many have reconsidered their in-house investment strategies and adapted them into a smart beta or multi-factor ETFs.

“If you look at the products that we have in market today, whether it be our multi-factor equity, our fixed income or ultra short duration alternatives, they are all products that come off of existing verticals within the firm, so you can actually access the investment capabilities of J.P. Morgan inside the ETF wrapper,” Jillian DelSignore, Head of ETF Distribution for J.P. Morgan, said at the recent Morningstar ETF Conference.

J.P. Morgan offers a suite of Diversified Return Equity ETFs, including the JPMorgan Diversified Return Emerging Markets Equity ETF (NYSEArca: JPEM), JPMorgan Diversified Return Global Equity ETF (NYSEArca: JPGE), JPMorgan Diversified Return US Equity ETF (NYSEArca: JPUS), JPMorgan Diversified Return Europe Equity ETF (NYSEArca: JPEU), JPMorgan Diversified Return Europe Currency Hedged Equity ETF (NYSEArca: JPEH), JPMorgan Diversified Return International Equity ETF (NYSEArca: JPIN) and JPMorgan Diversified Return International Currency Hedged Equity (NYSEArca: JPIH).

These multi-factor ETFs provide advisors and investors direct access to hedge fund exposure inside an ETF vehicle. The underlying indices diversify risks that are less likely to be rewarded while overweighting areas that are more likely to produce positive results.