JPMorgan Asset Management today announced the launch of the JPMorgan Active Small Cap Value ETF (JPSV ), an actively managed small-cap fund that seeks to outperform the Russell 2000 Value Index. The fund will use the New York Stock Exchange Active Proxy Model and be traded on NYSE Arca.
The strategy employs a bottom-up approach and aims to identify high-quality small-cap companies at attractive valuations. Lawrence (Larry) Playford, co-portfolio manager of the JPMorgan Mid Cap Value Fund and the JPMorgan Small Cap Blend Fund, will serve as lead portfolio manager for JPSV.
“Active small cap value can be a compelling addition to investor portfolios. As a leader in active management with a demonstrated track record of success, J.P. Morgan is uniquely positioned to deliver this strategy,” said Bryon Lake, head of Americas ETFs at JPMorgan Asset Management. “JPSV is our first ETF launched with the NYSE Active Proxy Model and we are confident this structure and portfolio will meet investor needs. This is an exciting addition to the rest of our actively managed range.”
JPMorgan’s application of the model provides a daily proxy portfolio that is substantially similar to the actual portfolio, facilitating efficient trading of the ETF shares and maintaining the tax efficiency of the ETF structure.
“We are pleased to collaborate with J.P. Morgan Asset Management on the launch of JPSV,” said Douglas Yones, head of exchange traded products at the NYSE. “By utilizing the NYSE Model, JPSV can provide investors greater access to this active strategy, while maintaining the intraday liquidity and tax efficiency they expect from ETFs.”
The addition of JPSV brings a differentiated offering to JPMorgan Asset Management’s full U.S. suite of ETFs, which now boasts more than $100 billion in assets under management. JPMorgan Asset Management ranks as a top 10 ETF issuer in the U.S. with respect to AUM and number two in net active flows across active ETFs in the U.S. for 2022.
“JPMorgan has become the leading provider of actively managed ETFs, with many advisors turning to their experienced teams for security selection help in 2023,” said Todd Rosenbluth, head of research at VettaFi. “JPMorgan Equity Premium Income (JEPI ) is one of the most researched tickers on VettaFi’s platforms. It is great to see the firm round out their lineup to support asset allocation strategies.”
JPSV carries an expense ratio of 74 basis points.
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