J.P. Morgan Asset Management launched the JPMorgan International Hedged Equity Laddered Overlay ETF (HOLA) on the NYSE Arca today.
According to the prospectus, the fund is designed to provide income through a diversified international equity portfolio while hedging overall market exposure. The fund employs a laddered options strategy to reduce downside risk during market declines.
HOLA’s Strategy
The underlying equity portfolio is constructed using a proprietary process that seeks to identify overvalued as well as undervalued stocks. At the same time, it closely tracks the structural characteristics of the MSCI EAFE Index, the fund’s benchmark. The goal is to capture the majority of the benchmark’s returns, but with lower volatility and a more defined risk profile.
At the time of listing, top holdings include ASML Holding NV, Nestle, Shell, and AstraZeneca.
In terms of geographic allocation, a majority of the fund (67.4%) is invested in Europe. While 21.6% is allocated to Japan, an additional 9.7% is invested in the rest of Asia. Within that regional slice, the fund allocates to Australia (6.6%), Hong Kong (1.5%), Singapore (1.4%), Macau (1.5 ), and New Zealand (0.1).
HOLA carries an expense ratio of 0.50%.
The fund is managed by an experienced team of portfolio managers. These managers include Hamilton Reiner, Piera Elisa Grassi, Nicholas Farserotu, Winnie Cheung, Matt Bensen, and Judy Jansen.
This fund is the latest addition to J.P. Morgan’s lineup of low-risk-focused strategies, which includes the JPMorgan Hedged Equity Laddered Overlay ETF (HELO ).
“JPMorgan has established a strong position as a manager of options-based active ETFs,” said Todd Rosenbluth, head of research at VettaFi. “Given the success of the U.S.-focused HELO, I am excited to watch the growth of a new international cousin.”
For more information, please visit VettaFi.com | ETF Trends.
