NEW YORK, Nov. 16, 2016 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of JPMorgan Diversified Return U.S. Small Cap Equity ETF (JPSE). The ETF may serve as a complement or replacement to market-cap weighted approaches.
Similar to other funds in J.P. Morgan's suite of ETFs, JPSE tracks a strategic beta index whose methodology is designed to capture much of the upside while pursuing less volatility in down markets compared to a market cap-weighted index.
JPSE tracks the Russell 2000 Diversified Factor Index. The index aims to deliver higher risk-adjusted returns than a traditional market cap-weighted index. The index uses a multi-factor stock ranking process (value, quality and momentum) and then broadly diversifies risk across sectors and stocks to avoid undue risk concentrations. The outcome of this process has historically driven strong performance.
The index leverages J.P. Morgan's proven investment capabilities and is thoughtfully constructed based on the firm's active insights and risk management expertise. JPSE will be managed by Yazann Romahi, CIO of Quantitative Beta Strategies, as well as Joe Staines, Jonathan Msika and Steven Wu. Romahi and team have been focused on beta philosophy research and development for more than a decade.
"In choppy markets, many investors are seeking a less volatile way to participate in equities" said Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management. "JPSE is a cost-efficient, risk-managed approach to U.S. small cap investing, enabling clients to get invested in the equity markets."
"FTSE Russell market research indicates that investors are looking for index tools and ETFs based on leading benchmarks to help them pursue a wide range of their objectives, including lower volatility, return enhancement and diversification" said Ron Bundy, CEO North America Benchmarks at FTSE Russell. "Our Russell 2000 Diversified Factor Index is designed to deliver these benefits in a rules based and transparent manner."
With the launch of JPSE, J.P. Morgan Asset Management's Diversified Return ETF suite features eleven product offerings. J.P. Morgan Asset Management is in # 8 in strategic beta ETF flows this year with over $ 600 million, according to Bloomberg (as of October 31, 2016). J.P. Morgan was also named one of the "Most Trusted" ETF providers according to Cogent Reports' 2016 Advisor Brandscape report and was awarded "Most innovative equity ETF – performance" award by Fund Action for its JPMorgan Diversified Return Global Equity (JPGE) product.
About J.P. Morgan Funds
J.P. Morgan Funds is the mutual fund arm of J.P. Morgan Asset Management. It is the 7th largest long-term manager in the U.S., with over $263 billion in long-term assets under management across a broad range of investment strategies in fixed income, equity, multi-asset, alternatives and absolute return.
J.P. Morgan Asset Management, with assets under management of $1.8 trillion (as of September 30, 2016), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high-net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (NYSE: JPM), the parent company of J.P. Morgan Asset Management, is a leading global financial services firm with assets of approximately $2.5 trillion (as of September 30, 2016) and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Investors should carefully consider the investment objectives and risks as well as charges and expenses of the fund before investing. The summary and full prospectuses contain this and other information about the fund. Read the prospectus carefully before investing. Call 1-844-4JPM-ETF or visit jpmorganetfs.com to obtain a prospectus.
Investing involves risk, including possible loss of principal.
Investments in smaller companies typically exhibit higher volatility. The fund uses derivatives, which may be riskier than other types of investments and may increase the volatility of the fund. The fund may not track the return of its underlying index for a number of reasons, such operating expenses incurred by the fund that are not applicable to the index, and the time difference between calculating the value of the index and the net asset value of the fund. There is no guarantee the funds will meet their investment objective. Diversification may not protect against market loss.
Past performance does not guarantee future results.
There is no guarantee the funds will meet their investment objective.
Diversification may not protect against market loss.
J.P. Morgan Exchange-Traded Funds are distributed by SEI Investments Distribution Co, One Freedom Valley Dr., Oaks, PA 19456, which is not affiliated with JPMorgan Chase & Co. or any of its affiliates.
J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co. Those businesses include, but are not limited to, JPMorgan Chase Bank N.A., J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated, J.P. Morgan Alternative Asset Management, Inc., and J.P. Morgan Asset Management (Canada), Inc.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
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SOURCE J.P. Morgan Asset Management