JPMorgan Enters Alternative Arena With New ETF

JPMorgan Chase & Co. JPM's JPMorgan Asset Management unit continued expanding its lineup of exchange-traded funds Wednesday with the debut of the JPMorgan Diversified Alternatives ETF JPHF.

“JPHF aims to democratize hedge fund investing by providing investors with institutional quality hedge fund strategy in a cost efficient, tradeable ETF wrapper. The ETF can serve as a core component of a portfolio's alternatives allocation.

"The bottom-up approach results in a purer capture of the hedge fund exposure and better diversification than traditional hedge fund replication strategies, as it employs strategies that have true low correlation to traditional markets,” said JPMorgan Asset Management in a statement.

JPHF is the company's first actively managed ETF.

Welcome, JPHF!

“JPHF will include equity long/short, event driven and global macro based strategies. The fund is managed by Rohami and Victor Lee, Managing Director and a Regional Specialist at J.P. Morgan,” according to ETF Trends.

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The new ETF's managers evaluate relevant return factors to establish long and short equity positions with the goal of generating alpha.

What Sets JPHF Apart

JPHF also features an event-driven strategy designed to benefit from catalysts that could affect future share prices, including merger arbitrage opportunities. The new ETF also features a global macro strategy that can tap multiple asset classes, including equities, fixed income, currencies and commodities.

“Alternative beta strategies provide investors with true diversification with attractive liquidity, transparency and cost,” said Robert Deutsch, head of ETFs for JPMorgan Asset Management, in the statement.

JPHF is the tenth ETF from JPMorgan Asset Management. Earlier this year, the firm launched the JPMorgan Diversified Return Europe Currency Hedged ETF JPEH and the JPMorgan Diversified Return International Currency Hedged ETF JPIH.

The firm also has ETFs covering U.S. and emerging markets stocks, among other offerings.

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