On Friday, J.P. Morgan Asset Management bolstered its library of ETFs with the launch of the JPMorgan Active Developing Markets Equity ETF (JADE).
The actively managed fund aims to provide long-term capital appreciation through emerging markets equity securities. JADE has a net expense ratio of 0.65%. The benchmark for the ETF is the MSCI Emerging Markets Index.
Emerging Markets Exposure
JADE invests in a variety of securities that are economically tied to emerging markets. This includes companies that have their primary place of business operating in an emerging markets country, or securities that trade principally in an emerging market.
Additionally, issuers that either accrued at least half of their revenues and profits from an emerging market or hold at least half of their assets in an emerging market may be considered as well. JADE’s portfolio may also contain companies or investment instruments that provide access to the economic risks and rewards of an emerging market country.
Through investing in emerging markets, JADE can provide investors with access to securities across the globe. A significant investment focus will be on securities denominated in foreign currencies.
“We believe emerging market valuations are attractive after years of underperformance,” noted Paul Quinsee, J.P. Morgan Asset Management CIO and global head of equities. “Many investors are structurally underweight in emerging markets and risk the potential of missing a recovery. JADE’s actively managed core strategy seeks to provide the diversified exposure investors are looking for.”
Global Securities
Assets within the fund primarily include large and mid-cap companies, though the fund may invest in small-cap companies as well. Per the fund prospectus, JADE may focus investments towards particular sectors, industries, of geographic regions.
While seeking investment opportunities, JADE applies a bottom-up fundamental approach. Using this strategy, the fund seeks stocks that possess consistent earnings and robust capital management. These investments aim to provide growth and value.
“This marks a very timely launch for a firm that’s proven to be a powerhouse in the active ETF space. Investors are increasingly looking to opportunities beyond the U.S. borders, as rates remain higher for longer and U.S. equity market valuations look more stretched by the day,” added Kirsten Chang, VettaFi Senior Industry Analyst.
J.P. Morgan currently has over 60 ETFs listed in the United States. These funds account for over $150 billion in assets under management.