JP Morgan Asset Management has launched a new actively managed ETF in the US that seeks to capture alpha across emerging market equities.

Paul Quinsee, CIO and Global Head of Equities at JP Morgan Asset Management.

The JPMorgan Active Developing Markets Equity ETF (JADE US) has been listed on NYSE Arca with an expense ratio of 0.65%.

Paul Quinsee, CIO and Global Head of Equities at JP Morgan Asset Management, commented: “We believe emerging market valuations are attractive after years of underperformance. Many investors are structurally under-weight in emerging markets and risk the potential of missing a recovery.

“JADE is an actively managed core strategy that seeks to provide the diversified exposure investors are looking for.”

The fund is led by Leon Eidelman and Omar Negyal, experienced portfolio managers with over 50 years of combined investment experience. Both Eidelman and Negyal are managing directors within the Emerging Markets and Asia Pacific (EMAP) equities team at JP Morgan Asset Management.

The portfolio managers utilize a fundamental, bottom-up approach to security selection, leveraging the local expertise of JP Morgan’s extensive network of research analysts. The strategy identifies opportunities across investment styles: for growth stocks, the ETF targets companies with sustainable long-term earnings growth, while for value stocks, it selects firms that are attractively priced and have strong dividend streams.

Although the ETF aims to manage risk through adequate diversification, it may deviate from the benchmark MSCI Emerging Markets Index by investing in small-cap stocks and occasionally increasing its relative emphasis on specific geographic regions and sectors.