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J.P. Morgan Asset Management Launches Active Developing Markets Equity ETF: JADE

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J.P. Morgan Asset Management announced the launch of the JPMorgan Active Developing Markets Equity ETF (JADE) on NYSE Arca. This actively managed ETF focuses on emerging markets equities, aiming for long-term capital appreciation through a fundamental, bottom-up stock selection process. Managed by Leon Eidelman and Omar Negyal, JADE leverages over 50 years of combined expertise and is benchmarked to the MSCI Emerging Markets Index. The ETF is priced at 65 basis points and seeks to offer diversified exposure to both growth and value stocks. J.P. Morgan Asset Management, a top ten U.S. ETF issuer with $3.2 trillion in AUM, underscores the attractiveness of emerging market valuations.

Positive
  • Launch of JPMorgan Active Developing Markets Equity ETF (JADE) adds to J.P. Morgan's diversified ETF offerings.
  • The ETF aims for long-term capital appreciation through rigorous research and fundamental stock selection.
  • Managed by experienced portfolio managers with over 50 years of combined expertise.
  • Priced at 65 basis points, potentially attractive for cost-sensitive investors.
  • JADE provides diversified exposure to both growth and value stocks in emerging markets.
  • J.P. Morgan Asset Management is a top ten ETF issuer in the U.S., highlighting its industry credibility.
Negative
  • JADE's performance is tied to emerging market equities, which have shown prolonged underperformance.
  • High market risks associated with emerging markets could affect the ETF's returns.
  • Actively managed ETFs like JADE may have higher fees compared to passive counterparts.
  • Potential investors should consider the risks and expenses outlined in the ETF's prospectus.

J.P. Morgan's launch of the JPMorgan Active Developing Markets Equity ETF (JADE) represents a calculated move into the emerging markets investment space, which has often been volatile but offers significant growth potential. The fund's active management approach and focus on a bottom-up stock selection strategy could appeal to investors looking for both growth and value opportunities. The decision to benchmark against the MSCI Emerging Markets Index aligns JADE with a well-known and broadly diversified index, which may offer some reassurance to potential investors.

The pricing of the ETF at 65 basis points is relatively standard for actively managed funds and it will be important to see if the active management can deliver returns that justify this fee. Given J.P. Morgan's track record and the experience of the portfolio managers, the fund has the potential to outperform passive emerging market ETFs, particularly if it can effectively navigate the inherent risks in these economies. Potential investors need to consider the long-term volatility associated with emerging markets and weigh this against their individual risk tolerance.

The introduction of JADE comes at a time when emerging markets are seen as being undervalued relative to historical trends. This perception of attractive valuations, as noted by Paul Quinsee, indicates a possible strategic entry point. Investors structurally underweight in these markets might find this ETF a timely addition to their portfolios, offering diversification with the potential for high returns if the market recovers. The emphasis on both growth and value stocks implies a balanced approach, aiming to mitigate some risks associated with emerging markets by diversifying within the asset class itself.

However, it is essential to watch how JADE performs compared to existing emerging market ETFs, both active and passive. Given J.P. Morgan's extensive resources and deep research capabilities, the fund may have a competitive edge. The rigorous research process touted by J.P. Morgan will be put to the test, as emerging markets can be highly unpredictable with varying degrees of political and economic stability.

Fund seeks to deliver JPM active management expertise and risk controls through ETF structure

NEW YORK, May 17, 2024 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of a new actively managed ETF, JPMorgan Active Developing Markets Equity ETF (JADE), on the NYSE Arca. The fund will invest in emerging markets equity securities.

JPMorgan Active Developing Markets Equity ETF (JADE) uses a fundamental, bottom-up approach to seek to provide investors with opportunities in both growth and value stocks. JADE seeks to provide long-term capital appreciation and utilizes a rigorous research process to select stocks that it believes are or will be profitable with sustainable earnings and disciplined capital management.

"We believe emerging market valuations are attractive after years of underperformance," said Paul Quinsee, CIO and Global Head of Equities at J.P. Morgan Asset Management. "Many investors are structurally underweight in emerging markets and risk the potential of missing a recovery. JADE is an actively managed core strategy that seeks to provide the diversified exposure investors are looking for."

JADE seeks to provide value primarily through security selection decisions, and will be benchmarked to the MSCI Emerging Markets Index. The MSCI Emerging Markets Index captures large and mid-cap representation across emerging markets countries.

JADE leverages the expertise of portfolio managers Leon Eidelman and Omar Negyal, who have over 50 years of combined experience. They are both managing directors with J.P. Morgan Asset Management's Emerging Markets and Asia Pacific (EMAP) Equities team based in New York.

The fund is priced at 65 basis points.

J.P. Morgan Asset Management ranks as a top ten ETF issuer in the U.S. with respect to AUM1, and has nearly 100ETF vehicles globally.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.2 trillion (as of 3/31/2024), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information: www.jpmorganassetmanagement.com. J.P. Morgan Asset Management is the marketing name for the asset management businesses of JPMorgan Chase & Co., and its affiliates worldwide.

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had $4.1 trillion in assets and $337 billion in stockholders' equity as of March 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ETF before investing. The summary and full prospectuses contain this and other information about the ETF and should be read carefully before investing. To obtain a prospectus: Call 1-844-4JPM-ETF.

J.P. Morgan Distribution Services, Inc., member FINRA

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

1 Data according to Bloomberg as of May 7, 2024

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SOURCE J.P. Morgan Asset Management

FAQ

What is the JPMorgan Active Developing Markets Equity ETF (JADE)?

JADE is an actively managed ETF launched by J.P. Morgan Asset Management, focusing on emerging markets equities.

When was the JPMorgan Active Developing Markets Equity ETF (JADE) launched?

The ETF was launched on May 17, 2024.

What is the management fee for the JPMorgan Active Developing Markets Equity ETF (JADE)?

The ETF is priced at 65 basis points.

Who are the portfolio managers for JADE?

Leon Eidelman and Omar Negyal, with over 50 years of combined experience, manage JADE.

What is the investment objective of JADE?

JADE aims to provide long-term capital appreciation by investing in both growth and value stocks in emerging markets.

What index does JADE benchmark against?

JADE is benchmarked to the MSCI Emerging Markets Index.

Why invest in JADE?

JADE seeks to offer diversified exposure to emerging markets equities, leveraging J.P. Morgan's active management expertise.

What are the risks associated with investing in JADE?

Investors should be aware of the high market risks and expenses related to emerging markets equities.

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