Global X Debuts Two JPMorgan ETFs (EFFE, SCTO)

by on October 30, 2014 | ETFs Mentioned:

Global X teamed up with JPMorgan’s indexes to launch two new fund-of-funds last week, marking two unique entries into the ETF world.

The JPMorgan Efficiente Index ETF (EFFE)

Taking the Latin word for efficient, EFFE takes aim at an all-in-one strategy that seeks to invest in multiple asset classes around the world. The fund rebalances each month meaning that its exposure will stay up to date with the happenings in the financial world. EFFE will shift exposure across 13 ETFs; those funds their max weight at any point are listed below:

  • New ETFsS&P 500 ETF (VOO) – 20%
  • Core S&P Small-Cap ETF (IJR) – 20%
  • Europe Pacific (VEA) – 20%
  • 20+ Year Treasury Bond ETF (TLT) – 20%
  • iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) – 20%
  • SPDR Barclays Capital High Yield Bond ETF (JNK) – 20%
  • Emerging Markets ETF (VWO) – 20%
  • iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) – 20%
  • REIT ETF (VNQ) – 20%
  • GSCI Commodity-Indexed Trust Fund (GSG) – 10%
  • COMEX Gold Trust (IAU) – 10%
  • TIPS Bond ETF (TIP) – 50%
  • 1-3 Year Treasury Bond ETF (SHY) – 50%

The fund also has a cap on the max amount that an asset class can take up in the fund, so there would never be a scenario when EFFE is fully invested in bonds or equities, for example. EFFE charges 0.86% for investment.

JPMorgan Sector Rotator Index ETF (SCTO)

SCTO tracks an index that rotates its sector exposure based on overall market trends. In bullish periods, the fund will spread its exposure across the nine Sector SPDRs and the SPDR Dow Jones REIIT ETF (RWR). The fund will invest in no more than five sectors at any point in time. In bearish periods, the fund will shift exposure to be 100% invested in SHY, the Treasury ETF listed above.  

SCTO rebalances monthly and also charges 0.86% for investment.

Follow me on Twitter @JaredCummans.

[For more ETF analysis, make sure to sign up for our free ETF newsletter]

Disclosure: No positions at time of writing.