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JPMorgan Rolls Out Factor-Based Mid-Cap ETF

by
May 12, 2016 8:23 am
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JPMorgan Chase & Co.'s (NYSE: JPM) J.P. Morgan Asset Management is adding to its growing lineup of factor-based exchange traded funds today with the debut of the JPMorgan Diversified Return U.S. Mid Cap Equity ETF (NYSE: JPME).

 

The JPMorgan Diversified Return U.S. Mid Cap Equity ETF, the eighth ETF from New York-based Jmorgan's asset management unit, follows the Russell Midcap Diversified Factor Index.

 

The Russell Midcap Diversified Factor Index is comprised of Russell Midcap stocks and uses a rules-based risk allocation and multi-factor selection process developed in partnership with J.P.Morgan Asset Management. The Index utilizes investment characteristics including attractive relative valuation, positive price momentum and strong quality characteristics. The Index seeks to diversify risk across sectors and stocks,” according to FTSE Russell, one of the largest providers of index for use by ETF sponsors. 

 

Home to over 600 stocks, the Russell Midcap Diversified Factor Index positions JPME as a conservative play on the mid-cap space via a 15.5 percent weight to consumer staples stocks and a 14.1 percent allocation to utilities names.

 

The new JPME is a multi-factor ETF, providing investors exposure to investment factors such as low volatility, momentum and quality. JPME also allocates nearly a quarter of its combined weight to financial services and technology stocks.

 

Last month, JPMorgan Asset Management introduced the JPMorgan Diversified Return Europe Currency Hedged Equity ETF (NYSE: JPEH) and the JPMorgan Diversified Return International Currency Hedged Equity ETF (NYSE: JPIH). The company also announced a passive stake in ETF provider Global X, which was also revealed in April.

 

J.P. Morgan Funds is the mutual fund arm of J.P. Morgan Asset Management.  It is the 7th largest long-term manager in the U.S., with over $263 billion in long-term assets under management across a broad range of investment strategies in fixed income, equity, multi-asset, alternatives and absolute return,” according to a statement. https://am.jpmorgan.com/us/en/asset-management/gim/adv/home


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