JP Morgan Asset Management has launched a new actively managed ETF in the US, offering exposure to a core portfolio of global stocks with a focus on higher dividend yields and faster dividend growth.
JP Morgan has expanded its actively managed ETF suite with a global dividend-focused equity fund.
The JPMorgan Dividend Leaders ETF (JDIV US) has been listed on NYSE Arca with an expense ratio of 0.47%.
The ETF leverages the investment strategy of the long-established JP Morgan Global Dividend Fund, a $5.6 billion vehicle that was first introduced in 2007.
It is managed by a seasoned team of portfolio managers: Sam Witherow, Managing Director, who has been with JP Morgan since 2008; Helge Skibeli, Managing Director, who joined in 1990 and previously served as Global Head of Developed Market Equity Research; and Michael Rossi, Vice President, who has been with the firm since 2019.
JDIV aims to deliver both current income and long-term capital appreciation by investing in dividend-paying equities across developed and emerging markets. The strategy specifically targets firms that JP Morgan identifies as “Dividend Leaders” — companies that are believed to have the ability to sustain or grow dividend payouts over time, particularly compared to peers in the MSCI ACWI Index. This approach is underpinned by insights from a global network of fundamental research analysts.
The fund’s investment process involves selecting equities based on proprietary research, focusing on firms with robust earnings growth, healthy cash flow, and resilient business models. In addition, environmental, social, and governance (ESG) factors are integrated into the analysis to identify long-term risks and opportunities. The ETF’s portfolio is actively managed, with adjustments made when changes in valuation, company fundamentals, or portfolio managers’ conviction occur.
As of the end of September, the ETF holds a total of 73 securities. The top ten holdings represent a significant portion of the portfolio, with Microsoft being the largest at 6.7%, followed by Meta Platforms at 3.8%, and Taiwan Semiconductor Manufacturing Company at 3.1%.
The fund is notably concentrated in the Information Technology sector, which accounts for a fifth of its assets, followed by Financials at 18.3%. Other key sector exposures include Health Care at 11.0% and Consumer Discretionary at 10.9%.