JP Morgan Asset Management (JPMAM) is set to launch its first ever active equity exchange-traded funds (ETFs) later this year .
The JPM Europe Research Enhanced Index Equity (JREE), JPM US Research Enhanced Index Equity (JREU) and the JPM Global Research Enhanced Index Equity (JREG) will be listed on the London Stock Exchange, Deutsche Boerse Xetra and Borsa Italiana respectively. The listings will take place on October 16, 2018.
JREE will be benchmarked against the MSCI Europe Index. JREU will be benchmarked against the S&P 500 Index and JREG will be benchmarked against the MSCI World Index. Each of them will have a Total Expense Ratio (TER) of 25 basis points.
Environmental, social and governance factors will be applied to the products in addition to integration, norms and values-based screening. In other words, companies in certain sectors, such as controversial weapons and tobacco, will not be invested in.
JPMAM’s head of international ETFs, Byron Lake, claimed the upcoming products will be “the first-of-their-kind active equity ESG ETFs”.
He added: “These ETFs seek to incorporate the best of both active and passive management and can play a versatile role in portfolios, including as a cost-effective core exposure to certain equity markets or as an asset allocation tool.”
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