New Listing

JP Morgan AM launches US small cap ETF

Tracks the Morningstar US Small Cap Target Market Exposure index

Theo Andrew

a man wearing a suit

JP Morgan Asset Management (JPMAM) has expanded its passive BetaBuilders range with the launch of a US small cap equity ETF.

The JPM BetaBuilders US Small Cap Equity UCITS ETF (BBSC) is listed on the London Stock Exchange, Deutsche Boerse and the Borsa Italiana with a total expense ratio (TER) of 0.14%.

BBSC tracks the Morningstar US Small Cap Target Market Exposure index which offers investors access to around 1,500 small-cap companies in the US.

The index consists of companies that fall between the 85th and 95th percentiles in market capitalisation of the free-float adjusted investable universe, which ranges from companies with a market cap of $73m to $5.6bn

According to Morningstar, the index can also include mid-cap companies in a bid to limit “excessive turnover”.

JPMAM has also launched a US distribution share class of the ETF under the ticker BBSD.

The ETFs will be managed by Nicholas D’Eramo, Michael Loeffler, Oliver Furby and Alex Hamilton.

Olivier Paquier (pictured), head of ETF distribution EMEA at JPMAM, said: “Our ETF suite has been designed to adapt to investors’ evolving needs across a range of different asset classes and investment strategies, with our BetaBuilders ETFs specifically focused on offering clients simple and cost-efficient building blocks for their portfolios.

“We are happy to expand on this with the launch of BBSC as we seek to meet the ongoing demand for US equities.”

Investors tracking US small caps with an ETF will have outperformed the S&P 500 which is 11.1% down so far this year.

The Invesco S&P SmallCap 600 UCITS ETF (ISP6) has returned -7% while the SPDR MSCI USA Small Cap Value Weighted UCITS ETF (USSC) has fallen just 1.6% so far this year.

The asset manager 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 China, Asia Pacific ex-Japan, Japan and eurozone equities.

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