JP Morgan is expanding its active exchange-traded fund (ETF) range with three new strategies dedicated to investing in US equities – US Core, US Value and US Growth.
The US Core ETF will consist of between 80 to 90 S&P 500 companies that managers David Small and Danielle Hines deem to be “mispriced by the market relative to their true long-term value”.
This will be the managers’ second venture together, having jointly run JPM US Sustainable Equity from launch in 2021. Since then, the £95m fund is up 19.8% and has beaten its peers in the IA North America sector by 6.9 percentage points.
Alternatively, the new US Value ETF will be a less concentrated between portfolio of between 130 to 200 Russell 1000 Value names.
Managers Clare Hart, Andrew Brandon, David Silberman will steer the fund, having already worked together for four years on JPM US Equity Income. Returns on the £3.6bn fund are up 38% under their joint management, trailing 22.7 percentage points behind the IA North America average over that period.
Scott Blasdell will be joining them on the new US Value ETF, bringing with him his experience investing in undervalued US large-cap companies.
Travis Spence, head of ETF distribution at JP Morgan, said: “By combining these complementary, bottom-up fundamental approaches, investors will get access to a well-balanced ETF solution in the large cap value category that seeks to identify companies that sit at the intersection of quality and value.”
The other new fund – JPM US Growth ETF – will also be a blend of approaches, combining the firm’s Large Cap Growth and Growth Advantage strategies.
Managers Giri Devulapally, Felise Agranoff and Tim Parton will combine their experience on these two strategies to build a portfolio of between 100 to 140 Russell 1000 Growth companies that exemplify “underappreciated growth opportunities which possess good momentum”.