JP Morgan launches Europe and Japan ‘BetaBuilders’ ETFs on Cboe

Jun 20th, 2018 | By | Category: Equities

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JP Morgan has launched two new ETFs on Cboe BZX that are part of the firm’s ‘BetaBuilders’ range of funds – low cost, passively managed ETFs marketed as portfolio ‘building blocks’.

JP Morgan launches Europe and Japan BetaBuilders ETFs on Cboe

JP Morgan has added Europe and Japan equity ETFs to its BetaBuilders range of ETFs.

The new additions provide broad exposure to the equity markets of developed Europe and Japan.

The JPMorgan BetaBuilders Europe ETF (BBEU US) tracks the Morningstar Developed Europe Target Market Exposure Index, a free-float adjusted market-cap weighted index consisting of stocks traded on exchanges in developed countries across Europe.

The UK is the largest country exposure in this index at 26%, followed by France and Germany at 15% each. Switzerland is the fourth largest country exposure with a weight of 13%.

The largest sector exposure is financials at 19%, with consumer staples, industrials, and health care accounting for approximately a 13% weight each. There are over 500 holdings in the portfolio which is well diversified; the largest constituent is Nestle with a weight of 2.6%.

The fund comes with a net expense ratio of 0.09% due to a contractual fee waiver in place until at least June 2021. Its gross expense ratio is 0.44%.

The JPMorgan BetaBuilders Japan ETF (BBJP US) tracks the Morningstar Japan Target Market Exposure Index which is also weighted by free-float market cap and consists of stocks traded primarily on the Tokyo and Nagoya Stock Exchanges.

The largest sector exposures are industrials and consumer discretionary, with weights of 22% and 20% respectively, followed by information technology (12%) and financials (11%).

There are 380 holdings in the portfolio, the largest of which is Toyota with a weight of 4.6% and Mitsubishi at 2.1%.

The net expense ratio of the fund is 0.19%. A fee waiver is also in place until at least June 2021. The fund’s gross expense ratio is 0.49%.

Also part of the BetaBuilders ETF suite is the JPMorgan BetaBuilders MSCI US REIT ETF (BBRE US) which also recently launched on Cboe BZX. The fund tracks the MSCI US REIT Index, a free-float adjusted market-cap weighted index composed of US-listed real estate investment trusts (REITs). BBRE has a net expense ratio of 0.11%.

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