J.P. Morgan Asset Management Unveils New JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ)

Rhea-AI Summary

J.P. Morgan Asset Management has launched the JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ) on the Nasdaq Stock Market. The new ETF joins their Hedged Equity suite alongside HELO, offering investors exposure to the Nasdaq-100 Index with built-in risk mitigation features.

HEQQ implements a laddered options overlay strategy, holding options across multiple hedge periods to provide lower volatility during market uncertainty. The fund combines an actively-managed growth and technology-oriented equity portfolio with hedging strategies, aiming to capture significant portions of Nasdaq-100 returns while managing risk.

The ETF is managed by Hamilton Reiner, who also manages HELO and JEPI (the largest actively managed ETF). The fund's expense ratio is set at 50 basis points.

Positive

• Expands JPM's ETF product line with innovative hedging strategy
• Leverages expertise of successful JEPI ETF management team
• Offers tax-efficient exposure to Nasdaq-100 with built-in risk management

Negative

• Higher expense ratio compared to passive index ETFs

News Market Reaction

-1.16%

1 alert

-1.16% News Effect

On the day this news was published, JPM declined 1.16%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Fund joins HELO in the firm's Hedged Equity suite

NEW YORK, March 27, 2025 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of the JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ) on the Nasdaq Stock Market. This new offering represents a strategic expansion of J.P. Morgan Asset Management's innovative Hedged Equity suite, complementing the success of the JPMorgan Hedged Equity Laddered Overlay ETF (HELO).

"The launch of HEQQ underscores our commitment to providing cutting-edge active ETFs that meet the diverse needs of our clients," said Travis Spence, J.P. Morgan Asset Management Global Head of ETFs. "With this addition to our Hedged Equity suite, we're giving investors a smart, sophisticated way to seek to ride out market ups and downs while tapping into the growth power of the Nasdaq."

In implementing the options overlay strategy, HEQQ provides laddered exposure by holding options for multiple hedge periods. This approach aims to provide lower volatility amid market uncertainty, offering a distinct solution that seeks to provide consistent hedged exposure while capitalizing on the tax efficiencies of the ETF vehicle. Paired with an actively-managed growth and technology-oriented long equity portfolio, HEQQ is designed for investors to capture a significant portion of the Nasdaq-100 Index [add registered mark here] while seeking to mitigating risk.

The portfolio management team is led by Hamilton Reiner, who also serves as the portfolio manager of HELO. As CIO of Core Equity Team and Head of U.S. Equity Derivatives at J.P. Morgan Asset Management, Hamilton boasts over 30-years of experience in derivates investing and manages the largest actively managed ETF, JPMorgan Equity Premium Income ETF (JEPI).^[1]

"HEQQ enhances our portfolio of options-based strategies and serves as a counterpart to HELO, utilizing the Nasdaq-100 as its benchmark," explained Hamilton Reiner. "At its core, this equity strategy is designed to enable participation in market gains while mitigating downside risk through a consistent hedge. This offers the opportunity to get invested in the Nasdaq-100 with reduced volatility and beta, making HEQQ an excellent choice for those seeking a balanced portfolio."

The fund is priced at 50 basis points. 

For more information about HEQQ, please visit www.jpmorgan.com/am.

^[1] Data according to Bloomberg as of March 20, 2025.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.6 trillion (as of 12/31/2024), 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, visit: www.jpmorgan.com/am

About JPMorgan Chase

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.0 trillion in assets and $345 billion in stockholders' equity as of as of 12/31/2024. 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 the JPMorgan ETF before investing. The summary and full prospectuses contain this and other information about the ETF. Read the prospectus carefully before investing. Call 1-844-4JPM-ETF or visit www.jpmorganETFs.com to obtain a prospectus.

Investing involves risk. Including possible loss of on an investment.

J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA.

Nasdaq®, Nasdaq-100 Index®, Nasdaq 100®, NDX® are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by the adviser. The ETF has not been passed on by the Corporations as to their legality or suitability. The ETF is not issued, endorsed, sold, or promoted by the Corporations.

THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE ETF. 

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SOURCE J.P. Morgan Asset Management

FAQ

What is the expense ratio for JPM's new HEQQ ETF?

The HEQQ ETF has an expense ratio of 50 basis points (0.50%).

How does JPM's HEQQ ETF manage market risk?

HEQQ uses a laddered options overlay strategy across multiple hedge periods to reduce volatility and mitigate downside risk while maintaining exposure to the Nasdaq-100.

Who manages JPM's new HEQQ ETF?

Hamilton Reiner, CIO of Core Equity Team and Head of U.S. Equity Derivatives at J.P. Morgan Asset Management, manages HEQQ.

What is the investment objective of JPM's HEQQ ETF?

HEQQ aims to capture significant portions of Nasdaq-100 Index returns while reducing volatility through an actively-managed portfolio combined with options-based hedging strategies.