There are two new ETFs on the market courtesy of JPMorgan Chase & Co.
Earlier this week, the company expanded its product line-up with two currency hedged funds. The first is the JPMorgan Diversified Return Europe Currency Hedged Equity ETF – a hedged equivalent of the JPMorgan Diversified Return Europe Equity ETF; while the second is the JPMorgan Diversified Return International Currency Hedged Equity ETF – a hedged equivalent of the JPMorgan Diversified Return International Equity ETF.
According to a JPMorgan release, the latter will track the FTSE Developed ex North America Diversified Factor 100% Hedged to USD Index. It combines investment factors including value, size, momentum and low volatility factors. The index’s weight primarily focuses on Japan and the UK – collectively they make up 47 per cent of its weight.
Meanwhile, the former will follow the FTSE Developed Europe Diversified Factor 100% Hedged to US index which combines quality, momentum factors and value.
Speaking in a statement, Robert Deutsch, global head of ETFs for JP Morgan Asset Management, commented that the new products are well-designed for the current marketplace.
“As volatility and currency risk continue to worry investors, clients are increasingly turning to our strategic beta products for a new approach to address the drawbacks of market cap-weighted indices,” he said. “We are thrilled to expand our investment capabilities with currency-hedged ETFs, complementing our existing strategies and offering clients more choices.”