JP Morgan expands smart beta suite with launch of European equity ETF

Jan 4th, 2016 | By | Category: Equities

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JP Morgan Asset Management has announced the launch of the JP Morgan Diversified Return Europe Equity ETF (NYSE: JPEU). The fund, which has been listed on the NYSE Arca, is the latest offering in its growing smart beta “strategic beta ETFs” line-up, which already includes US, global, international and emerging market equity exposures.

JP Morgan expands smart beta suite with launch of European equity ETF

Robert Deutsch, Global Head of ETFs for JP Morgan Asset Management.

Linked to the FTSE Developed Europe Diversified Factor Index, the new fund provides broad coverage of developed market equities trading in Europe and seeks favourable returns by targeting firms with attractive fundamental valuations, quality characteristics and strong price momentum.

The fund also aims to reduce volatility compared to traditional market cap-weighted approaches by employing a top-down risk allocation framework that equally distributes portfolio risk over 10 sectors.

“The European recovery provides a growth opportunity for long-term investors,” said Robert Deutsch, Global Head of ETFs for JP Morgan Asset Management. “JPEU is constructed to allow investors to participate in the upside while also providing less volatility in down markets. We are pleased to combine the investment expertise of JP Morgan with the index design capabilities of FTSE Russell, to create a product that will be attractive to investors looking for exposure to European markets, but are concerned with volatility.”

Ron Bundy, CEO of North America benchmarks for FTSE Russell, added: “We are excited to partner with JP Morgan ETFs and together meet the growing demand among investors for a broader set of international options, by offering the FTSE Developed Europe Diversified Factor Index. We continue to apply FTSE Russell’s expertise in global strategic beta indices to expand on this very important long-term relationship.”

As of 24 December 2015, the fund held 289 holdings, including names such as Vodafone, SAP, Novartis, Iberdrola, Roche, GlaxoSmithKline, Swisscom, Novo Nordisk, Ericsson and National Grid.

The fund has a total expense ratio of 0.43%.

JP Morgan’s strategic beta ETF suite includes:

JP Morgan Diversified Return Global Equity ETF (JPGE)
JP Morgan Diversified Return International Equity ETF (JPIN)
JP Morgan Diversified Return Emerging Markets Equity (JPEM)
JP Morgan Diversified Return US Equity (JPUS)
JP Morgan Diversified Return Europe Equity ETF (NYSE: JPEU)

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