JPEU: new Smart Beta European Equity ETF by JP Morgan

JP Morgan Asset Management, begun trading the JPMorgan Diversified Return Europe Equity ETF (NYSE Arca: JPEU) on Wednesday, December 23, 2015. Here is a synopsis of the new ETF:

 

 

FUND INFORMATION:

Symbol: JPEU  Exchange: NYSE Arca
Name: JPMorgan Diversified Return Europe Equity ETF  Net Expense Ratio: 0.43%

 

FUND OBJECTIVE:
The JPMorgan Diversified Return Europe Equity ETF seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE Developed Europe Diversified Factor Index.

 

 

REFERENCE INDEX:
The FTSE Developed Europe Diversified Factor Index is comprised of equity securities from across developed Europe selected to represent a diversified set of factor characteristics, originally developed by the FTSE International Limited (Index Provider). Holdings in the Underlying Index are selected by the Index Provider from the constituents of the FTSE Developed Europe Index, a larger FTSE index, which is comprised of large- and mid-cap equity securities in developed European markets.

The rules based proprietary multi-factor selection process utilizes the following characteristics: valuation, momentum, and quality. The equity securities in the Underlying Index will be diversified across industries. These securities will be large- and mid-cap equity securities of companies from European countries, including common stock and preferred stock.

As of November 30, 2015, the market capitalizations of the companies in the Underlying Index ranged from $228 million to $211.1 billion. For purposes of investing at least 80% of its Assets in securities included in the Underlying Index, the Fund may invest in depositary receipts representing securities included in the Underlying Index. The Fund may invest up to 20% of its assets in exchange-traded futures and currency forward contracts to seek performance that corresponds to the Underlying Index, but not for hedging currency.

 

 

Fund Top 10 Holdings (12/29/15):

Symbol

Name

Weight

SAP GR SAP SE  2.35%
VOD LN VODAFONE GROUP PLC  2.35%
NOVN VX NOVARTIS AG-REG  2.22%
IBE SM IBERDROLA SA  2.08%
GSK LN GLAXOSMITHKLINE PLC  1.82%
ROG VX ROCHE HOLDING AG-GENUSSCH  1.82%
SCMN VX SWISSCOM AG-REG  1.75%
ERICB SS ERICSSON LM-B SHS  1.32%
FRE GR FRESENIUS SE & CO KGAA  0.79%
TEL NO TELENOR ASA  0.79%

 

 

 

Useful Links:
JPEU Home Page

 

 

Category: Equities> Regions> Europe> Broad Europe> European Strategy

 

 

ETFtrack comment:
Here is a comment from Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management:
“JPEU is constructed to allow investors to participate in the upside while also providing less volatility in down markets. We are pleased to combine the investment expertise of J.P. Morgan with the index design capabilities of FTSE Russell, to create a product that will be attractive to investors looking for exposure to European markets, but are concerned with volatility.”
JPEU is the 5th product offered since the launch in June 2014.

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