JP Morgan Asset Management has introduced a new actively managed ETF on Nasdaq, providing investors with access to an innovation-focused strategy that the firm has managed for over 25 years.
JP Morgan has rolled out a new actively managed ETF providing exposure to a seasoned disruptive technology strategy.
The JP Morgan US Tech Leaders ETF (JTEK US), which comes with an expense ratio of 0.65%, introduces a new investment avenue for those interested in the dynamic world of technology-driven disruption.
Managed by a team of seasoned professionals, including portfolio managers Joseph Wilson and Eric Ghernati who have 18 and 23 years of investment industry experience, respectively, JTEK has a clear objective: delivering capital appreciation over the long term through investments in technology and technology-enabled companies.
Leveraging the insights of JP Morgan’s broader equity research platform, the portfolio managers seek to identify companies that are established leaders or rising stars in existing technology and technology-enabled industries, are utilizing new technologies to reimagine products, or are establishing new markets using cutting-edge technologies. Eligible firms may be sourced from across the US market capitalization spectrum
Security selection then involves evaluating multiple attributes such as disruptive business models, sustainable competitive advantages, large addressable markets, and proven management teams. Generally, the fund will invest in companies where the magnitude and/or duration of growth are perceived to be underappreciated by the market.
JP Morgan’s US Tech Leaders strategy, which debuted in 1997, has consistently delivered outperformance over various time periods. As of the end of June, the strategy’s 5-year return (net of fees) was 14.99% per annum versus 12.70% for the Russell 1000 Equal Weight Technology Index. Outperformance over the past year has been even more impressive with a return of 35.40% compared to 25.85% for the benchmark.
As of the end of June, JP Morgan’s US Tech Leaders strategy portfolio consisted of 59 holdings with significant positions in industry leaders such as Meta Platforms (5.4%), Nvidia (4.7%), Tesla (4.4%), Oracle (3.5%), Synopsys (3.4%), Netflix (3.1%), Alphabet (3.1%), and Advanced Micro Devices (3.0%).
The majority of the portfolio’s exposure was allocated across three industry groups: software (39.6%), semiconductors (24.7%), and the internet (21.5%).