JP Morgan Asset Management Launches Small-Cap Value ETF

JPMorgan Asset Management has launched the JPMorgan Active Small Cap Value ETF (JPSV), an actively managed small-cap fund that aims to outperform the Russell 2000 Value Index. The fund will use the New York Stock Exchange Active Proxy Model and be traded on NYSE Arca. JPSV carries an expense ratio of 74 basis points.

The strategy employs a bottom-up approach and seeks to identify high quality small cap companies at attractive valuations. Lawrence (Larry) Playford, co-portfolio manager of the JPMorgan Mid Cap Value Fund and the JPMorgan Small Cap Blend Fund, will serve as lead portfolio manager for JPSV.

“JPSV is our first ETF launched with the NYSE Active Proxy Model and we are confident this structure and portfolio will meet investor needs. This is an exciting addition to the rest of our actively managed range,” said Bryon Lake, Head of Americas ETFs at J.P. Morgan Asset Management.

The application of the Model provides a daily proxy portfolio that is substantially like the actual portfolio, facilitating efficient trading of the ETF shares and maintaining the tax efficiency of the ETF structure.

The addition of JPSV brings the asset manager’s US suite of ETFs to more than $100 billion in assets under management.

“By utilizing the NYSE Model, JPSV can provide investors greater access to this active strategy, while maintaining the intraday liquidity and tax efficiency they expect from ETFs,” added Douglas Yones, Head of Exchange Traded Products at the NYSE.