JP Morgan Asset Management (JPMAM) has launched two actively-managed ETFs tracking China and Asia ex-Japan.
The JPM China A Research Enhanced Index Equity ESG UCITS ETF (JREC) and the JPM AC Asia Pacific ex-Japan Research Enhanced Index equity ESG UCITS ETF (JREA) are listed on the London Stock Exchange, Deutsche Boerse and SIX with total expense ratios (TER) of 0.40% and 0.30%, respectively.
It takes the full range of research enhanced index equity ETFs, designed to serve as building blocks for core allocations, to six.
Actively managed, JPMAM’s research team will offer stock-specific insights to the portfolio managers, who will then take small overweight or underweight positions on certain companies.
It added this will help with getting exposure to the long-term trends driving China’s onshore market while mitigating the impact of the market’s high turnover and will be benchmarked against the MSCI China A index.
Both ETFs are classified as Article 8 under the Sustainable Financial Disclosure Regulation (SFDR), with ESG integrated factors built in via value and norms-based screening process.
Olivier Paquier, head of ETF distribution for EMEA at JPMAM, said: “The average international investor’s total China exposure is currently 4.6% of total assets, and a large part of this is likely to be in offshore Chinese equities through emerging markets equity strategies.
“JREC can help investors find a balance in the representation of Chinese equities in their portfolios. They will now be able to capture China A-Shares opportunities, in a simple, easy-to-trade and attractively-priced active ETF.”