J.P. Morgan Asset Management, begun trading a new Smart Beta U.S. Small Cap ETF, the JPMorgan Diversified Return U.S. Small Cap Equity ETF (Nyse Arca: JPSE), on Wednesday, November 16, 2016. Here is a synopsis of the new ETF:

 

FUND INFORMATION:

Symbol: JPSE	Exchange: NYSE ARCA
Name: JPMorgan Diversified Return U.S. Small Cap Equity ETF	Net Expense Ratio: 0.39%

 

FUND OBJECTIVE:
The JPMorgan Diversified Return U.S. Small Cap Equity ETF seeks investment results that closely correspond, before fees and expenses, to the performance of the Russell 2000 Diversified Factor Index.

REFERENCE INDEX:
The Russell 2000 Diversified Factor Index is comprised of U.S. equity securities selected to represent a diversified set of factor characteristics, originally developed by the adviser. Frank Russell Company is the Index Provider. Holdings in the Underlying Index are selected by the Index Provider primarily from the constituents of the Russell 2000 Index, a larger Russell index, which is comprised of small-cap equity securities in the United States. The rules based proprietary multi-factor selection process utilizes the following characteristics: relative valuation, momentum and quality. The Underlying Index security selection process then seeks to exclude the least attractive securities based on these characteristics. In addition, the Underlying Index is designed to more evenly distribute risk to minimize risk concentrations across sectors and individual securities. The Underlying Index is not currently focused on any particular sector and is diversified across the following sectors: financials, technology, consumer services, health care, industrials, consumer goods, energy/materials and telecommunication/utilities. Within each sector, stocks are also weighted to diversify risk across individual equity securities. The Fund’s securities are small-cap equity securities of U.S. companies, including common stock, preferred stock and real estate investment trusts (REITs). As of October 31, 2016, the market capitalizations of the companies in the Underlying Index ranged from $7.8 million to $8.0 billion.

 

Fund Top Consituents (11/18/16):

JP MORGAN US GOVT MMKT	1.70%
WEBSTER FINANCIAL CORP	0.77%
PAPA JOHNS INTL INC	0.77%
STEVEN MADDEN LTD	0.75%
NUTRISYSTEM INC	0.72%
LANCASTER COLONY CORP	0.72%
MINERALS TECHNOLOGIES INC	0.71%
VECTOR GROUP LTD	0.71%
WGL HOLDINGS INC	0.71%
SENSIENT TECHNOLOGIES COR	0.70%

Fund Sector Breakdown (11/18/16):

Consumer Staples	22.8%
Consumer Discretionary	13.2%
Industrials	12.8%
Information Technology	11.2%
Utilities	10.7%
Health Care	9.8%
Financials	9.0%
Materials	5.8%
Energy	2.8%
Telecomm Svcs	1.6%

 

 

 

Useful Links:
JPSE Home Page

 

 

Category: Equities> Regions> USA> US Size>  US Small Cap

 

 

ETFtrack Comment:
Here is a comment from  Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management:
“In choppy markets, many investors are seeking a less volatile way to participate in equities. JPSE is a cost-efficient, risk-managed approach to U.S. small cap investing, enabling clients to get invested in the equity markets.”

With the launch of JPSE, J.P. Morgan Asset Management’s Diversified Return ETF suite features eleven product offerings.