JP Morgan Asset Management (JPMAM) has rolled out its first fixed income exchange-traded fund (ETF) that taps into investment factors such as momentum.
The JPMorgan Global High Yield Corporate Bond Multi-Factor Ucits ETF, which is listed on the London Stock Exchange, Deutsche Börse Xetra and the Borsa Italiana, cover emerging and developed markets.
It primarily focuses on high yield securities which exhibit strong value, quality and momentum characteristics.
According to the firm, investing in a combination of securities with these characteristics provides investors with a yield comparable to traditional debt-weighted bond indices.
Chief investment officer of quantitative beta solutions at JPMAM, Yazann Romahi, said until now, the industry has predominantly focused on factor investing in equity markets and long/short alternative future strategies, as data has been more readily available.
He added: “Based on our research, factors like value, quality and momentum are asset-class agnostic and very much alive and present in credit markets.”
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