JPMorgan Adds To Suite Of Diversified Return ETFs

By | December 30, 2015

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JPMorgan’s Diversified Return ETFs are strategic beta funds that seek to improve the risk-adjusted returns of diversified portfolios. Each is based on a FTSE Diversified Factor index designed to exclude expensive and low-quality stocks with weak momentum characteristics. JPMorgan’s first Diversified Factor ETFs began trading in June 2014. By December 2015, the suite had grown to include the following funds: Diversified Return Global Equity (NYSEARCA: JPGE ) Diversified Return International Equity (NYSEARCA: JPIN ) Diversified Return Emerging Markets Equity (NYSEARCA: JPEM ) Diversified Return US Equity (NYSEARCA: JPUS ) Core European Exposure The fifth member of the lineup, the JPMorgan Diversified Return Europe Equity ETF (NYSEARCA: JPEU ), began trading on December 21. The ETF is designed to serve a foundational role in a developed Europe stock portfolio by combining portfolio construction with stock selection in attempting to produce higher returns with lower volatility than traditional market cap-weighted indices. “The European recovery provides a growth opportunity for long-term investors,” said Robert Deutsch, J.P. Morgan Asset Management’s Global Head of ETFs, in a recent statement. “JPEU is constructed to allow investors to participate in the upside while also providing less volatility in down markets” Like all JPMorgan Diversified Return ETFs, JPEU tracks a FTSE Diversified Factor Index – in this case, the FTSE Developed Europe Diversified Factor Index. The index was “thoughtfully constructed” based on JPMorgan’s “active insights and risk management expertise,” according to the statement, and is rebalanced quarterly. “We are excited to partner with J.P. Morgan ETFs and together meet the growing demand among investors for a broader set of international options, by offering the FTSE Developed Europe Diversified Factor Index,” said Ron Bundy, CEO of North America benchmarks for FTSE Russell. “We continue to apply FTSE Russell’s expertise in global strategic beta indices to expand on this very important long-term relationship.” European Equity Experience JPMorgan’s James Ford and Richard Morillot, both vice-presidents, are the co-managers of the fund. JPMorgan has been investing in European markets since 1964 and manages $37 billion in European equities. “We are pleased to combine the investment expertise of J.P. Morgan with the index design capabilities of FTSE Russell, to create a product that will be attractive to investors looking for exposure to European markets, but are concerned with volatility,” said Mr. Deutsch. Scalper1 News

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