J.P. Morgan Launches Diversified Global Equity ETF (JPGE)

by on June 19, 2014 | ETFs Mentioned:

Wall Street has been in for another round of up-and-down sessions so far this week, as investors digested several economic reports as well as escalating turmoil in Iraq. In economic news, the New York Federal Reserve’s Empire State index of manufacturing activity rose to 19.3 in May, while industrial production rose 0.6%. Investors also kept a close eye on the Federal Reserve’s policy statement on Wednesday [for more ETF news and analysis subscribe to our free ETF Daily Roundup].

On the ETF front, investors welcomed 13 new funds last week, including the first fund to offer investors exposure to master limited partnerships outside of the energy industry. This week, only one new fund hit the street.

J.P. Morgan Debuts Diversified Global Equity FundFlag

JP Morgan‘s new Diversified Return Global Equity ETF (JPGE) tracks the FTSE Developed Diversified Factor Index, which is comprised of equity securities from developed global markets selected to represent a diversified set of factor characteristics. The index selects its underlying securities based on factors such as relative valuation, price momentum, low volatility, and specific market capitalization. JPGE’s portfolio currently holds over 450 individual securities. The fund charges a 0.38% expense ratio. 

Commenting on the fund, JP Morgan noted: “The fund is designed to provide market participation with lower volatility, and starts with the premise that traditional market-cap weighted and single-factor indices expose investors to excessive risk concentrations and a systematic bias toward overvalued securities. Therefore, the fund seeks to reallocate risk by weighting stocks according to four factors: value, size, momentum and low volatility.”

Though the fund tracks an index, it is still managed by two industry experts: Beltran Lastra and James Cook. Lastra is the head of JP Morgan’s Global Research Enhanced Index (REI) and Europe Research Driven Process (RDP) Core Strategies, holding the portfolio management responsibility for Global REI and Europe RDP Core strategies. He’s been with the firm for 18 years [see 10 of the Best ETF Trades of All Time].

Cook is a portfolio manager responsible for managing the Emerging Market & Asia ex Japan portfolios on the Research Enhanced Index equity desk. In addition, James is also a research analyst responsible for covering the developed Asia financial stocks. He’s been with JPM for 7 years. 

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Disclosure: No positions at time of writing.