On Friday, J.P. Morgan Asset Management closed out the week with the launch of the JPMorgan U.S. Research Enhanced Large Cap ETF (JUSA).
JUSA is built to offer competitive capital appreciation prospects for its investors. This fund is actively managed and has a net expense ratio of 20 basis points.
“JUSA exemplifies the core principles of J.P. Morgan Asset Management’s leadership in active ETFs,” said John Harrington, global head of ETF product at J.P. Morgan Asset Management. “By combining decades of experience in managing our time-tested Research Enhanced strategies with the innovative structure of the active ETF vehicle, we are delivering a solution that aligns with our tradition of excellence and commitment to innovation. JUSA demonstrates our ability to adapt proven strategies to meet the evolving needs of investors in today’s dynamic market and is an exciting addition to our active U.S. ETF offerings.”
Assets for the fund are allocated especially towards large-cap U.S. companies. That being said, JUSA may also occasionally invest in midcap companies.
Importance of Research
Generally, the focus of JUSA’s strategy comes from its emphasis on active stock selection. As a whole, the fund looks to offer significantly similar sector weightings to the general large-cap market. That being said, the fund looks to overweight potentially undervalued stocks while underweighting or outright ignoring overvalued peers.
The active stock selection process for JUSA explicitly blends research, valuation, and disciplined stock selection. To start, the fund managers use deep research processes to evaluate a company’s relative value potential. From there, companies are ranked among their sector peers in terms of relative value overall.
Valuation research for the fund is conducted through a broad variety of methods. This can simultaneously include proprietary data, self-reported company releases, fundamental research, and third-party vendors.
“JPMorgan has been a dominant force in the world of active ETFs,” noted Kirsten Chang, senior industry analyst at VettaFi. “It’s great to see them fortify their franchise and continue to leverage their stock selection expertise with new offerings. No doubt advisors will be seeking out quality in these turbulent times.”
JUSA joins JPMorgan’s robust selection of ETF offerings, which features over 60 different funds. Overall, these funds represent over $190 billion in assets under management.
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