JP Morgan Asset Management launches a new Active Value ETF
TToday JP Morgan announced in a Press release the expansion of their Active Equity Suite with the addition of the JPMorgan Active Value ETF (JAVA), a transparent and actively managed fund that is part of the JP Morgan Global Equities platform.
The fund invests primarily in large cap stocks using a bottom-up approach to select stocks that have an attractive value base and the potential for capital appreciation. JP Morgan uses quantitative and proprietary screens that analyze company fundamentals.
“JAVA supports the commitment to our growing active ETF suite by offering clients another tool that goes beyond the index to help investors avoid unprofitable and overvalued companies in today’s environment,” said Bryon Lake, Global Head of ETF Solutions at JP Morgan Asset Management. “We are delighted to combine managers of complementary Large Cap Value platforms with solid background and experience to offer the best in active investing and the best in value at an attractive price. “
The fund has four co-managers, including Clare Hart, who was previously named one of Barron’s “100 Most Influential Women in American Finance”, and the portfolio management team consists of more than 20 career analysts. in US equities.
JAVA invests in companies with market capitalizations similar to those contained in the Russell 1000 Value Index, ranging from $ 742 million to $ 1.95 trillion. It invests in stocks that the advisor considers undervalued given the potential for growth over a longer period, and it also invests in real estate investment trusts (REITs) and derivatives.
The portfolio managers leverage the advisor’s large cap value strategy as well as their US value strategy to create the portfolio. Part of the investment process also includes assessing ESG factors such as tax policies, shareholder rights, etc. for security and the impacts they can have on cash flow.
At launch, the main sector allocations were financials at 25.1%, healthcare at 15.0% and industrials at 14.2%.
The fund has an expense ratio of 0.44%.
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