Due to float on the London Stock Exchange in mid-July, the risk factor exchange-traded fund range seeks to utilise smart beta indices developed by JP Morgan to offer investors a variety of risk factors.
The euro-denominated Lyxor JP Morgan Europe Factor Index UCITS ETF range will be divided into the following criteria: low size, value, momentum, low beta and quality.
“The growing interest for risk factor investing stems from investors’ need for portfolio allocation tools focusing on the core drivers of equity markets performance,” said Arnaud Llinas, head of Lyxor ETFs and indexing.
Rui Fernandes, JP Morgan head of EMEA equities structuring and fund-linked products, added: “Investors are seeking more cost efficient and risk adjusted alternatives as they continue to invest into equities, and ETFs present a convenient format in which to do that.
The risk factor range will also be made available on selected stock markets across the continent once passporting is complete.