JP Morgan to list its first European ETFs

JP Morgan Asset Management (JPMAM) is to list its first European ETFs since announcing its entry to the market earlier this year.

The JPM Equity Long-Short Ucits ETF aims to provide long-short exposure to factors like value, quality and momentum within developed global equity markets.

The JPM Managed Futures Ucits ETF will provide systematic long-short exposure to two investment factors, known as carry and momentum. It ranges across futures with four underlying asset classes: equities, fixed income, currency and commodities.

The firm did not reveal details about pricing, but said these would be announced at a later date. 

Mike O’Brien, JPMAM Europe, Middle East and Africa CEO, told Funds Europe recently about his plans to build a European ETF business and that he  believed smart beta would become common place across portfolios in the next decade.

The ETFs are to be made available to investors across markets in Europe. 

Both ETFs will offer investors exposure to the investment characteristics typical of hedge funds by using alternative beta to include both long and short investing, said the firm.

Yazann Romahi, chief investment officer of quantitative beta strategies at JPMAM, said: “When we started doing research on alternatives more than a decade ago, we built on the academic research which suggested that a large portion of hedge fund returns could actually be accessed using a bottom-up, systematic, rules-based approach – the same way traditional passive investing in long-only markets works.

“Now we’re looking to bring the same benefits of diversification, reduced overall portfolio volatility, and higher portfolio risk-adjusted returns to the ETF wrapper through the launch of these two ETFs.”

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