Funds seek to deliver JPM active management
expertise and risk controls through ETF structure
NEW
YORK, Sept. 29, 2023 /PRNewswire/ -- J.P. Morgan
Asset Management today announced the launch of a new actively
managed hedged equity ETF, JPMorgan Hedged Equity Laddered
Overlay ETF (HELO) on the NYSE Arca. The outcome-oriented ETF
invests in U.S. large-cap equities with a laddered options overlay
designed to provide downside hedging relative to traditional equity
strategies.
"Helping investors get invested and stay invested has always
been our North Star," said Hamilton Reiner, portfolio
manager and Head of U.S. Equity Derivatives. "Given our
leadership in outcome-oriented strategies, we are very excited to
bring HELO to market to provide another unique solution that suits
the needs of our clients."
JPMorgan Hedged Equity Laddered Overlay ETF (HELO) is an
active hedged equity strategy that invests in a portfolio of U.S.
large cap stocks with an options overlay that seeks to provide
downside protection, while foregoing some upside potential. HELO
utilizes the same team and philosophy as the JPMorgan Hedged Equity
Mutual Fund Series. Over the long-term, HELO seeks to
capture a significant portion of the U.S. equity market returns
with lower volatility than traditional equity strategies over the
long-term, which should lead to competitive risk-adjusted
returns.
The laddered hedge overlay of HELO will consist of three hedges
lasting three months, that are each staggered one month apart. This
"laddered" hedging approach aims to provide downside protection and
upside capture.
"We listen to our clients and their request is to have a
strategy like this available in the ETF wrapper," said
Bryon Lake, Global Head of ETF
Solutions at J.P. Morgan Asset Management. "Hamilton and team have demonstrated strong
success with active ETFs like JEPI and JEPQ, and HELO is a great
addition to our active ETF family."
HELO leverages an experienced equity portfolio management
team, with nearly 70 years of combined experience, with industry
veterans Hamilton Reiner, J.P. Morgan Asset Management Head of U.S.
Equity Derivatives, and Raffaele
Zingone, a portfolio manager in the U.S. Equity Core
group.
The active hedged equity ETF is offered at a price point
of 50 bps.
"Regardless of the environment, equity investors are focused on
managing risk," explained Reiner. "We expect strong demand
for HELO as investors look for outcome-oriented
solutions that provide the hedged experience through the ETF
wrapper."
J.P. Morgan Asset Management ranks as a top ten ETF issuer in
the U.S. with respect to AUM, and number one year to date in net
active flows across active ETFs in the U.S.1
About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management
of $2.8 trillion (as of 6/30/2023), 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 $3.9 trillion in assets and $313
billion in stockholders' equity as of June 30, 2023. 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.
HELO Risk: Writing options on S&P 500 ETFs can reduce
equity market risk, but it limits the opportunity to profit from an
increase in the market value of stocks in exchange for upfront cash
at the time of selling the call option. The value of positions in
options on S&P 500 ETFs will fluctuate in response to changes
in the value of the underlying ETF or index. Unusual market
conditions or the lack of a ready market for any particular option
at a specific time may reduce the effectiveness of the option
strategies. As a result, the option strategies may not reduce the
investment's volatility to the extent desired and could result in
losses.
J.P. Morgan Distribution Services, Inc., member FINRA
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
1 Data according to Bloomberg as of September 14, 2023.
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SOURCE J.P. Morgan Asset Management