J.P. Morgan Asset Management debuted a new emerging markets ETF aims that aims to provide exposure to USD denominated sovereign debt across emerging markets.
The JPMorgan USD Emerging Markets Sovereign Bond ETF (JPMB) tracks the JPMorgan Emerging Markets Risk-Aware Bond Index, created by JPMAM’s Quantitative Beta Strategies team and derived from J.P. Morgan’s Corporate & Investment Bank flagship JPMorgan EMBI Global Diversified Index.
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The index utilizes a rules-based, three-step process that filters for liquidity, country risk and allocates risk based on credit rating. It invests 80% of its assets in securities included in the underlying index and will rebalance its portfolio on a monthly basis within each country and semi-annually across countries in accordance with the rebalancing of the underlying index.
By using an alternative weighting approach, the index seeks to provide better risk-adjusted returns vs. market cap weighted indexes and potentially generate a competitive yield and lower levels of duration for clients.
JPMB is managed by an experienced team led by Quantitative Beta Strategies co-portfolio managers, Eric Isenberg and Niels Schuehle. A leader in factor-based investing, J.P. Morgan has been managing quantitative beta strategies since 2009. Additionally, JPMB leverages J.P. Morgan’s $470 billion global fixed income platform, which is comprised of over 200+ sector specialists.
“Fixed income ETFs continue to revolutionize investing by providing access to an often challenging asset class in a liquid, transparent and cost-effective vehicle,” said Joanna Gallegos, U.S. Head of ETFs for J.P. Morgan Asset Management. “With JPMB, clients can gain exposure to emerging market debt, which is a growing component of global bond markets, and it can serve as a diversifier to a core bond portfolio.”
J.P. Morgan Asset Management’s ETF suite now features twenty two product offerings with over $3 billion in assets under management. J.P. Morgan achieved a top ten position in flows across smart beta ETFs in 2016, ranking 8th out of 47 ETF managers. J.P. Morgan was also named one of the “Most Trusted” ETF providers according to Cogent Reports’ 2016 Advisor Brandscape report, and was awarded “Best New Alternatives ETF” and “Best New Active ETF” by ETF.com for its JPMorgan Diversified Alternatives ETF (JPHF) products.
For more information on new fund products, visit our new ETFs category.
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