New exchange-traded funds (ETFs) on the ASX are not an uncommon event these days. The ASX has welcomed more than a few new ETFs to its boards in recent years. One of the most recent was just late last month, with the launch of the Global X Green Metal Miners ETF (ASX: GMTL).
But today, we have another two to welcome.
JPMorgan is a US-based investment bank and wealth manager. Until now, it has never hosted ETFs on the ASX. But that has just changed with the launch of not one, but two, new funds.
The first is the JPMorgan Global Research Enhanced Equity Active ETF (ASX: JREG).
This ETF is designed to give investors "efficient index exposure with an active edge". It is built to perform like an index fund that tracks the MSCI World ex-Australia Index, but also uses active share selection to attempt to gain a performance edge over a pure index fund.
At present, the JPMorgan Global Research Enhanced Equity Active ETF has 713 individual holdings. This includes all of the big names on the MSCI Index, such as Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN) and Exxon Mobil Corp (NYSE: XOM).
This fund has a 6% weighting to US shares, with other countries like Japan, Canada, Hong Kong, and France also represented.
The JPMorgan Global Research Enhanced Equity Active ETF will charge a management fee of 0.3% per annum.
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JPMorgan launches two new ASX ETFs
The other fund getting an ASX birth today is the JPMorgan Equity Premium Income Active ETF (ASX: JEPI).
This fund, as the name implies, is one that is focused on providing investing income. It is based on the US S&P 500 Index (SP: .INX) but uses a number of strategies to boost income from US dividend shares. It holds mostly US dividend shares, such as Exxon Mobil, PepsiCo Inc (NASDAQ: PEP) and Coca-Cola Co (NYSE: KO).
But the JPMorgan Global Research Enhanced Equity Active ETF also uses a covered call strategy to boost potential investor income. The use of call options in this endeavour is a complex undertaking. But this is basically designed to increase income with reduced volatility and, potentially, performance.
This fund charges a management fee of 0.4% per annum.
