Following on from the launch of the ETFs last month, both JP Morgan Managed Futures Ucits ETF (JPMF) and JP Morgan Equity Long-Short Ucits ETF (JELS), take a factor-based investment approach.
The firm said its goal is to deliver returns uncorrelated to traditional asset classes and provide a similar return to hedge fund strategies.
Both ETFs have a return target of cash +4% and a risk target of 6-8% per annum.
JELS seeks to provide factor exposure across the major asset classes and will be built with a bottom-up approach, taking long and short positions in futures markets. The fund has expected beta of up to +0.3 and total expense ratio (TER) of up to 67 basis points (bps).
Meanwhile, JMPF seeks to provide long-short exposure to developed equity market factors, constructed with a bottom-up approach by taking long and short positions in individual equity securities. It has a TER of up to 57bps.
Bryon Lake, international head of ETFs at JPMAM, said: “The increasing availability of lower cost, more liquid and transparent forms of alternative investing has gradually been democratising hedge fund investing for the last several years.
“Both strategies offer innovative building blocks intended to help investors build stronger portfolios and reduce a portfolio’s overall volatility without sacrificing return potential.”
