JPMorgan Chase & Co. (NYSE:JPM)'s J.P. Morgan Asset Management expanded its lineup of exchange traded funds Monday with the addition of two currency hedged funds.
The JPMorgan Diversified Return Europe Currency Hedged Equity ETF (NYSE: JPEH) and the JPMorgan Diversified Return International Currency Hedged Equity ETF (NYSE: JPIH) are the newest additions to JPMorgan's family of ETFs and bring the lineup to nine funds.
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JPMorgan's newest ETFs are currency hedged equivalents of the JPMorgan Diversified Return International Equity ETF (NYSE:JPIN) and the JPMorgan Diversified Return Europe Equity ETF (NYSE:JPEU).
The JPMorgan Diversified Return International Currency Hedged Equity ETF tracks the the FTSE Developed ex North America Diversified Factor 100% Hedged to USD Index. That index combines investment factors such as value, size, momentum and low volatility factors, according to J.P. Morgan Asset Management.
The UK and Japan combine for nearly 47 percent of that index's weight while Asia ex-Japan and Europe ex-UK garner the rest of the index's weight. Consumer discretionary, consumer staples, healthcare and industrial names all garner weights of more than 11 percent in the benchmark.
The JPMorgan Diversified Return Europe Equity ETF follows the FTSE Developed Europe Diversified Factor 100% Hedged to USD Index. That index combines the value, quality and momentum factors.
Over a quarter of the new ETF's weight will be allocated to U.K. stocks with Switzerland taking on a decent percentage as well, meaning the JPMorgan Diversified Return Europe Equity ETF could thrive if the pound, franc and euro falter in unison against the dollar.
"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." said Robert Deutsch, Global Head of ETFs for J.P. Morgan Asset Management, in a statement. "We are thrilled to expand our investment capabilities with currency-hedged ETFs, complementing our existing strategies and offering clients more choices."
JPMorgan's new Europe hedged ETF charges 0.43 percent a year, or $43 per $10,000 invested. The JPMorgan Diversified Return International Currency Hedged Equity ETF carries an annual fee of 0.49 percent, or $49 for every $10,000 invested.
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