Industry Updates

JP Morgan AM closes US active equity multi-factor ETF

JPUS shutting due to low demand

Theo Andrew

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JP Morgan Asset Management has liquidated its US equity multi-factor ETF after failing to attract sufficient assets.

The JP Morgan ETFs US Equity Multi-Factor UCITS ETF (JPUS) launched in July 2019 – alongside the $74.7m JP Morgan Global Equity Multi-Factor UCITS ETF (JPGL) – and will close with $13.6m assets under management (AUM).

Actively managed, JPUS is benchmarked against the JP Morgan Diversified Factor US Equity index, returning -18.5% year to date as at 30 September, compared to -25.3% of the S&P 500.

JPUS had a total expense ratio (TER) of 0.20%.

In a shareholder notice, JP Morgan AM said: “The sub-fund has not attracted sufficient assets and has limited prospects for growth. Therefore, the board has decided that it would be in the best interest of the shareholders to liquidate the sub-fund.”

The fund will liquidate on 23 November and investors will have until 16 November to sell or redeem their investment.

Failing this, investors will receive their liquidation proceeds automatically.

It follows a tricky period for factor ETFs, which recorded the largest outflows in Q3 2022.

In August, Invesco halved the TER on its actively managed Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF (IQSA) to 0.30%.

JP Morgan AM has continued to expand its ETF range throughout 2022. In June, the US giant launched Europe’s first active UK equity ETF, the JP Morgan UK Equity Core UCITS ETF (JUKE), alongside the JP Morgan Climate Change Solutions UCITS ETF (T3MP).

The firm has also launched five more active equity ETFs this year including ChinaAsia Pacific ex-JapanJapan and eurozone equities.

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