JP Morgan launches five single factor ETFs on NYSE Arca

Nov 13th, 2017 | By | Category: Equities

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JP Morgan Asset Management (JPMAM) has launched five smart beta ETFs on NYSE Arca. The ETFs each select US equities that display high exposure to one of five factors: momentum, value, quality, dividend and minimum volatility.

JP Morgan launches five single factor ETFs on NYSE Arca

The single factor ETFs join JP Morgan’s existing ETF suite covering equities, fixed income and alternatives.

Joanna Gallegos, US head of ETFs at JPMAM, commented: “The introduction of single factor ETFs underscores our commitment to providing choice for our clients and bringing the best and most innovative products to market. While we offer a breadth of solutions, single-factor funds allow clients to be more granular in their approach and customize their portfolios to meet distinct outcomes.”

Each fund tracks a proprietary index derived from the Russell 1000 and holds 200-400 securities while limiting single stock concentration risk.

J.P. Morgan U.S. Value Factor ETF (JVAL US) tracks the J.P. Morgan U.S. Value Factor Index, which selects constituents based on diversified measures of their valuation including book yield, earnings yield, dividend yield and cash flow yield.

J.P. Morgan U.S. Quality Factor ETF (JQUA US) tracks the J.P. Morgan U.S. Quality Index, which selects constituents based on their quality as measured by profitability, solvency risk and earnings quality.

J.P. Morgan U.S. Momentum Factor ETF (JMOM US) tracks the J.P. Morgan U.S. Momentum Factor Index, which selects constituents based on their risk-adjusted return momentum.

J.P. Morgan U.S. Minimum Volatility ETF (JMIN US) tracks the J.P. Morgan U.S. Minimum Volatility Index, which uses a rules-based risk allocation and stock selection process in an effort to deliver lower volatility while maintaining diversification across sectors and securities.

J.P. Morgan U.S. Dividend ETF (JDIV US) tracks the J.P. Morgan U.S. Dividend Index, which uses a rules-based risk allocation and stock selection process developed in an effort to deliver high dividend yield while maintaining diversification risk across sectors and securities.

The ETFs all have a gross expense ratio of 0.52%, although due to a fee waiver in place until November 2020, the funds currently have a net expense ratio of 0.12%.

The launch brings JPMAM’s ETF suite to 18 funds with over $2bn in assets under management. The firm has been highly active in the ETF space recently, having launched its first ETFs in Europe this week.

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