ETF Trends
ETF Trends

Money managers are now look to smart beta ETFs as a way for a wider audience of investors to access their successful research and proven capabilities in an easy-to-use and efficient investment vehicle.

“We are moving on to a new chapter in the ETF book, if you will, and J.P. Morgan is at the core of that next chapter,” Jillian Delsignore, Head of ETF Distribution for J.P. Morgan Asset Management, said at the Charles Schwab Impact Conference. “We want to help you write that next chapter, and so we’re really creating strategies, leveraging our research and capabilities to create factor based strategies that help build that stronger core.”

For instance, J.P. Morgan recently expanded on its line with the launch of cheap 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 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.

J.P. Morgan launched “five new single factor ETFs to continue to provide the marketplace with choice, leveraging an already successful quantitative beta strategies team… leveraging what we’ve been able to do within multi-factor equity and moving that into single factor,” Delsignore said.

The single-factor ETF options join J.P. Morgan’s Diversified Return Equity suite, which include 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).

For more ETF-related commentary from Tom Lydon and other industry experts, visit our video category.