JP Morgan Asset Management (JPMAM) has made a foray into the multi-factor ETF space with the launch of two products while also expanding its fixed income ETF range.
The JPMorgan Global Equity Multi-Factor UCITS ETF (JPGL) and the JPMorgan US Equity Multi-Factor UCITS ETF (JPUS) are listed on the London Stock Exchange, Deutsche Börse Xetra and the Borsa Italiana with total expense ratios (TERs) of 0.19%.
JPGL will track the JP Morgan Diversified Factor Global Developed (Region Aware) Equity index while JPUS will look to match the performance of the JP Morgan Diversified Factor US Equity index.
JPMAM says traditional indices can be highly concentrated in certain sectors so the strategies use the firm’s quantitative beta strategies team to adjust sector weightings based on a proprietary methodology.
The team then look to diversify factor risk by screening stocks based on the value, quality and momentum factors.
The two ETFs will mirror strategies in the US.
Bryon Lake (pictured), head of international ETFs at JPMAM, who was named in ETF Stream's 30 Index, commented: “Our multi-factor equity ETFs have been designed to help keep investors fully invested across market cycles.
“We have received a lot of client interest in these types of strategies. Multi-factor ETFs are a fast-growing area of the fund universe and we’re delighted to be able to offer clients a new and attractively priced solution to help support their overall asset allocation needs.”
The firm has also launched the JPM BetaBuilders US Treasury Bond 0-1 yr UCITS ETF (BBIL) on the same exchanges with a TER of 0.10%.
Tracking the ICE 0-1 Year US Treasury Securities index, BBIL offers investors exposure to short-dated dollar-denominated government debt.
Earlier this year, the firm joined Lyxor in launching the cheapest ETF available on the European market, with the listing of the JPM BetaBuilders US Equity UCITS ETF (BBUS) for just 0.04%, ETF Stream revealed.
JPMAM entered the European ETF space in November 2017 with two actively managed liquid alternative strategies.