JPMorgan is launching its first two ETFs for the European market.
The JPM Equity Long-Short Ucits ETF and the JPM Managed Futures Ucits ETF will be listed on the London Stock Exchange this quarter and will subsequently be made available to investors in key European markets.
Both ETFs will have hedge fund characteristics and will use factor-based investing and alternative beta strategies. The mandates were designed by the quantitative beta strategies team, headed up by Yazann Romahi.
The JPM Equity Long-Short Ucits ETF will take a bottom-up approach and focus on factors such as value, quality and momentum in developed global equities.
The JPM Managed Futures Ucits ETF will provide exposure to carry and momentum factors across equities, fixed income, currency and commodities. It will also use a bottom-up approach, taking long and short positions in the futures markets.
Bryon Lake, international head of ETFs at JPMAM, says: “Providing investors with institutional-quality hedge fund strategies in a cost-efficient, liquid and tradeable ETF wrapper should help us to advance the democratisation of hedge fund investing.
“The first wave of ETF listings is the next step in our commitment to building out our active, strategic beta and alternative beta ETF capabilities with a view to serving the needs of clients globally. We intend to build on this momentum going into 2018 as we introduce more of JPMAM’s investment capabilities into the ETF vehicle.”