JP Morgan Asset Managements newest ETF, the JPMorgan Diversified Return Europe Equity ETF (JPEU), has begun trading further expanding the company’s strategic beta suite. JPEU is the fifth product offered since the launch in June 2014.
JPEU is designed to serve as the foundation of a developed Europe equity portfolio, combining portfolio construction with stock selection in an effort to produce higher returns with lower volatility than traditional market cap-weighted indices. Similar to its predecessors, the ETF seeks to diversify risk across sectors and build a portfolio that excludes expensive, low quality companies with weak momentum characteristics.
The ETF tracks the FTSE Developed Europe Diversified Factor Index, which is rebalanced on a quarterly basis and was thoughtfully constructed based on JP Morgan's active insights and risk management expertise. The fund is managed by an experienced JP Morgan team, with James Ford and Richard Morillot as co-managers. JP Morgan has been investing in European markets since 1964 and manages $37B in European equities.
"The European recovery provides a growth opportunity for long-term investors," says Robert Deutsch, Global Head of ETFs for JP 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 JP 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."
"We are excited to partner with JP Morgan ETFs and together meet the growing demand among investors for a broader set of international options, by offering the FTSE Developed Europe Diversified Factor Index," says Ron Bundy, CEO of North America benchmarks for FTSE Russell. "We continue to apply FTSE Russell's expertise in global strategic beta indices to expand on this very important long-term relationship."
