J.P. Morgan Asset Management Expands ETF Offerings with Two New Hedged Equity Funds

Strategic Insights -

J.P. Morgan Asset Management has listed two new hedged equity funds, JPM US Hedged Equity Laddered Overlay Active UCITS ETF (HELO) and JPM Nasdaq Hedged Equity Laddered Overlay Active UCITS ETF (HEQQ), on major European exchanges. The funds are designed to provide investors with a way to capture a significant portion of the S&P 500 Index and the Nasdaq-100 Index while minimizing risk. HELO is an actively managed fund investing in US large cap stocks with a laddered options hedge overlay, while HEQQ focuses on a growth and technology-oriented portfolio with a consistent hedged exposure.

Key Takeaways:

  • HELO aims to provide downside hedging, potential for upside participation, and strong risk-adjusted returns with lower volatility than traditional equity strategies.
  • The fund will be managed by an experienced team led by Hamilton Reiner, J.P. Morgan Asset Management CIO of Core U.S. Equities and Head of U.S. Equity Derivatives, and Raffaele Zingone, Matt Benson, and Judy Jansen.
  • HEQQ is designed to provide consistent hedged exposure and lower volatility, enabling investors to capture a significant portion of the Nasdaq-100 Index while seeking to mitigate risk.
  • The portfolio management team for HEQQ is led by Hamilton Reiner, Eric Moreau, Matt Benson, and Judy Jansen, supported by a fundamental data science process that utilizes over 40 years of J.P. Morgan proprietary data.
  • Both HELO and HEQQ will have a TER of 50 basis points.
  • The introduction of these funds reflects J.P. Morgan Asset Management's commitment to delivering innovative active ETF solutions tailored to the evolving goals of clients.
  • Equity investors are focused on risk management, and J.P. Morgan expects strong interest in these funds as investors seek consistent hedged solutions in an ETF format.

Statistics:

  • HELO will invest in US large cap stocks with a laddered options hedge overlay.
  • HEQQ focuses on a growth and technology-oriented portfolio with a consistent hedged exposure.
  • Both funds will have a TER of 50 basis points.
  • The experienced team managing HELO includes over 15 U.S. equity research analysts and 80 global analysts.
  • HEQQ's portfolio management team is supported by over 40 years of J.P. Morgan proprietary data.

Sources:

  • Press Release: J.P. Morgan Asset Management Expands ETF Offerings with Two New Hedged Equity Funds
  • Bloomberg: J.P. Morgan Assets Lists Two New Hedge Equity ETFs on Exchanges in Europe