JPMorgan Introduces Data-Driven ETFs, Targets Core Equity Segments

JPMorgan Chase & Co. JPM shares are trading higher Thursday. J.P. Morgan Asset Management (JPMAM) launched the JPMorgan Fundamental Data Science (FDS) Suite on the Nasdaq Stock Exchange.

The Suite includes three new active ETFs leveraging data science for portfolio construction – JPMorgan Fundamental Data Science Large Core ETF (LCDS), JPMorgan Fundamental Data Science Mid Core ETF (MCDS), and JPMorgan Fundamental Data Science Small Core ETF (SCDS).

The adviser uses a data science-driven approach to construct a fundamentally selected equity portfolio. This method is currently utilized in two strategies with over $15 billion in assets – the JPMorgan Applied Data Science Value Fund (JPIVX) and the equity portfolio of the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ).

The process uses proprietary techniques to analyze diverse data sources—such as fundamental research and financial statements—to assess security performance and identify investments with favorable pricing relative to their risk.

The JPMorgan Fundamental Data Science Large Core ETF, Mid Core ETF, and Small Core ETF will have expense ratios of 30, 35, and 40 basis points, respectively.

Read: JPMorgan Unveils In-House Chatbot To Enhance Research Capabilities: Report

Jonathan Sherman, Head of the U.S. Equity Investment Specialist Team at J.P. Morgan Asset Management said, “The launch of the FDS Suite marks a key step in our active ETF strategy as we implement a fundamental approach to navigate today’s complex markets.”

“By combining advanced data science capabilities with our experienced investors and robust risk management, we aim to deliver outcomes that help clients reach their financial goals with confidence.”

“ETFs are liquid, transparent, cost-effective, tax-efficient, and flexible—that’s why ETF technology is quickly becoming the vehicle of choice for financial advisors, their clients, and increasingly, institutions,” added Jed Laskowitz, Global Head of Asset Management Solutions at J.P. Morgan Asset Management.

This week, J.P. Morgan Payments also broadened its collaboration with PopID to roll out in-store biometric payment technology with selected pilot merchants throughout the U.S.

Investors can gain exposure to the JPM stock via IShares U.S. Financial Services ETF IYG and SPDR Select Sector Fund – Financial XLF.

Also Read: Zelle Controversy Heats Up: JPMorgan Considers Legal Action

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Katherine Welles on Shutterstock

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