Market Overview

JPMorgan Adds 2 ETFs To BetaBuilders Lineup

JPMorgan Adds 2 ETFs To BetaBuilders Lineup

J.P. Morgan Asset Management, the asset management and exchange traded funds arm of JPMorgan Chase & Co. (NYSE: JPM), added to its lineup of plain vanilla ETFs Wednesday with the debut of two products.

The JPMorgan BetaBuilders Developed Asia-ex Japan ETF (CBOE: BBAX) and the JPMorgan BetaBuilders Canada ETF (CBOE: BBCA) are the new additions to firm's ETF stable.

What Happened

Some of JPAM's BetaBuilders have rapidly gained traction with investors. For example, the JPMorgan BetaBuilders Japan ETF (NYSE: BBJP) is not even two months old, and the fund already has $1.79 billion in assets under management.

The JPMorgan BetaBuilders Europe ETF (NYSE: BBEU) debuted on the same day in June as the BBJP and now has $402.41 million in assets under management.

Why It's Important

The JPMorgan BetaBuilders Developed Asia-ex Japan ETF tracks the Morningstar Developed Asia Pacific ex-Japan Target Market Exposure Index. As its name implies, that index excludes Japan, but includes other major developed Asia-Pacific economies such as Australia, Hong Kong, New Zealand and Singapore.

BBAX holds 164 stocks and its roster is dominated by financial services names. The sector accounts for 37.3 percent of the new ETF's weight. Real estate and materials stocks combine for 24 percent, according to issuer data.

The JPMorgan BetaBuilders Canada ETF follows the Morningstar Canada Target Market Exposure Index, which holds mid- and large-cap stocks listed on the Toronto Stock Exchange. The new ETF is home to 94 stocks.

BBCA is also heavy on financial stocks, allocating 39.7 percent to that sector. Energy is the new ETF's second-largest sector weight at 21 percent. All of BBCA's top 10 holdings, a group representing approximately 45 percent of the fund's weight, are either financial services or energy names.

What's Next

The success of some funds in an issuer's product suite never guarantees the success of new additions, but it's hard to ignore the asset-gathering proficiency of BBJP and BBEU. With BBAX and BBCA, the funds are, at the very least, competitive on fees.

Both new JPMorgan ETFs charge 0.19 percent per year, or $19 on a $10,000 investment. This makes the Canada ETF 30 basis points cheaper than the largest U.S.-listed Canada ETF.

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