- Developed with J.P. Morgan as underlying benchmark for first US ETF
- Reinforces FTSE position as leading provider of alternatively weighted indices and its strong growth in North American ETF business
FTSE Group (“FTSE”), the global index provider, has launched a new FTSE Global Diversified Factor Index Series, which was co-developed with J.P. Morgan, a global leader in investment management, to serve as the underlying benchmark for the issuer’s first-ever ETF in the United States.
The J.P. Morgan Diversified Return Global Equity ETF (“JPGE”) will track the FTSE Developed Diversified Factor Index, a global developed market equity index that employs an innovative risk allocation and multi-factor scoring methodology. The benchmark is designed to measure the performance of securities from Developed markets spanning 40 regional industries, and which represent four distinct return factor characteristics: attractive relative valuation, positive price momentum, low volatility and small market capitalization. This index represents the first available within the new FTSE Global Diversified Factor Index Series.
Dating back to 2005, FTSE has an extensive track record in creating and calculating alternatively weighted indices that underpin financial products. FTSE calculates a broad range of fundamental-based, risk-based and thematically weighted indices in both Developed and Emerging markets.
Including the new JPGE ETF, there are 112 equity and fixed income ETFs tracking a FTSE benchmark available to investors in North America. As of May 31, 2014, there was a combined AUM of $145 Billion in ETF assets benchmarked to FTSE indices in North America.
Jonathan Horton, President of FTSE North America, said:
“We are delighted that J.P. Morgan has chosen FTSE as the index provider for launching their new ETF business in the United States. Electing to work with FTSE to co-develop the methodology behind this ground-breaking multi-factor index series is a great example of combining J.P. Morgan’s know-how in the research and investment process with our index expertise creating customized solutions in partnership with clients.”
Robert Deutsch, Head of ETF business, J.P. Morgan Asset Management, added:
“J.P. Morgan has unique investment insights and global capabilities to offer ETF investors, and this product is an important first step in delivering those capabilities. We believe that the custom index co-developed with FTSE sets this fund apart and reflects a next-generation style ETF that will be attractive to US investors.”
