JP Morgan Asset Management has added two new ETFs to its ‘ActiveBuilders’ suite of actively managed core equity funds.
Bryon Lake, Head of Americas ETF Client at JP Morgan Asset Management.
The JPMorgan ActiveBuilders US Large Cap Equity ETF (JUSA US) and JPMorgan ActiveBuilders International Equity ETF (JIDA US) provide broad exposure to US large-cap equities and developed market equities outside of the US while maintaining the potential for alpha generation.
JUSA and JIDA have been listed on NYSE Arca with expense ratios of 0.17% and 0.25%, respectively.
The funds maintain similar risk characteristics compared to their benchmarks for US (S&P 500) and developed ex-US (MSCI EAFE) exposures.
The ETFs also employ the expertise of JP Morgan’s Global Equities platform, which consists of 370 investment professionals managing over $700 billion in assets, to seek enhanced returns compounded over time.
JP Morgan’s active management approach utilizes a proprietary top-down multi-factor model to quantitatively rank countries and sectors to inform portfolio allocation. It then aims to identify companies with the highest prospect for long-term growth based on a purely bottom-up process.
ESG risks are also considered when selecting investments, although the ETFs’ prospectuses note that ESG analysis, by itself, does not determine whether a stock is included or omitted from the portfolios.
The new listings complement the JPMorgan ActiveBuilders Emerging Markets Equity ETF (JEMA US) which launched in March and has an expense ratio of 0.33%.
Bryon Lake, Head of Americas ETF Client at JP Morgan Asset Management, said: “We’re excited to harness the full scale of JP Morgan’s Global Equities platform in an effort to deliver a core equity suite that looks to offer investors premier active management capabilities to help them meet their goals – combining the low cost, tax-efficient beta of a passive ETF with the value add of active management.
“Whether it is retail investors looking to meet their retirement goals or sophisticated asset allocators who are seeking to differentiate their portfolios by going beyond fee budgets, ActiveBuilders offer another way to enhance equity exposure while managing costs and potentially avoiding outsized manager risks.
“JUSA, JIDA, and JEMA each offer the ability for investors to potentially strengthen their core portfolios and broader asset allocation strategy by combining JPMorgan’s fundamental insights with the lower fees and tracking error of passive investing.”