JPMorgan Asset Management Launches Fundamental Data Science ETF Suite on Nasdaq

Rhea-AI Summary

J.P. Morgan Asset Management (JPMAM) has launched the JPMorgan Fundamental Data Science (FDS) Suite on the Nasdaq Stock Exchange. This suite comprises three new active ETFs: JPMorgan Fundamental Data Science Large Core ETF (LCDS), Mid Core ETF (MCDS), and Small Core ETF (SCDS). These funds leverage advanced data science for portfolio construction, applying a sophisticated investment approach that combines data insights with fundamental research.

The FDS Suite aims to deliver outcomes that help clients reach their financial goals by integrating research, data insights, and risk management. The funds will be managed by co-portfolio managers Eric Moreau and Andrew R. Stern, both executive directors at JPMAM. Priced at 30, 35, and 40 basis points respectively, these ETFs are designed to be liquid, transparent, cost-effective, and tax-efficient investment vehicles.

Positive

• Launch of three new active ETFs leveraging advanced data science for portfolio construction
• Integration of data science with fundamental research in investment strategy
• Expansion of JPMAM's active ETF offerings
• Competitive pricing of the new ETFs at 30, 35, and 40 basis points
• Application of a proven investment process currently managing over $15 billion in assets

Negative

• None.

Insights

Financial Analyst

JPMorgan's launch of the Fundamental Data Science (FDS) ETF Suite is a strategic move in the evolving ETF landscape. The suite's competitive pricing (30, 35 and 40 basis points) positions it well against passive funds while offering active management. This could attract cost-conscious investors seeking alpha generation.

The integration of data science with fundamental analysis represents a modern approach to active management, potentially enhancing stock selection and risk management. With $15 billion already managed using this approach, JPMorgan demonstrates proven traction for this strategy.

However, investors should note that while innovative, this approach is untested in various market conditions. The success will largely depend on the effectiveness of JPMorgan's proprietary data science techniques in generating consistent outperformance.

Tech Expert

The FDS Suite represents a significant advancement in applying data science to investment management. By leveraging proprietary techniques to process vast amounts of data, including fundamental research and financial statements, JPMorgan is essentially creating a machine learning model for stock selection.

This approach could potentially outperform traditional methods by identifying subtle patterns and relationships in data that human analysts might miss. However, the effectiveness of such models often depends on the quality and breadth of input data, as well as the sophistication of the algorithms used.

Investors should be aware that while promising, AI-driven investment strategies can sometimes struggle with unexpected market events or rapid shifts in economic conditions that may not be reflected in historical data.

Market Research Analyst

JPMorgan's launch of the FDS Suite aligns with the growing trend of incorporating advanced analytics in investment management. This move could appeal to tech-savvy investors and those seeking a blend of active and passive strategies.

The ETF market has seen significant growth, with assets reaching $10 trillion globally in 2023. By offering actively managed ETFs with a data science edge, JPMorgan is positioning itself to capture a share of this expanding market, particularly among investors looking for sophisticated strategies in a cost-effective wrapper.

However, the success of these funds will depend on their ability to deliver consistent outperformance. If they can demonstrate superior results, it could lead to increased inflows and potentially influence other asset managers to adopt similar approaches.

Funds leverage advanced data insights

NEW YORK, Aug. 8, 2024 /PRNewswire/ -- J.P. Morgan Asset Management (JPMAM) today announced the launch of the JPMorgan Fundamental Data Science (FDS) Suite on the Nasdaq Stock Exchange. The Suite is comprised of three new active ETFs, incorporating data science for their 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).

In managing the funds, the adviser employs a sophisticated investment approach that leverages data science to build a fundamentally selected equity portfolio. This data science-based investment process is currently applied to two strategies with over $15 billion in total assets under management: the JPMorgan Applied Data Science Value Fund (JPIVX) and the equity portfolio underlying the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ).

"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," added Jonathan Sherman, Head of the U.S. Equity Investment Specialist Team at J.P. Morgan Asset Management. "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."

This process integrates research, data insights, and risk management by extracting valuable insights from various information sources. Using proprietary techniques, the adviser processes, analyzes and combines a wide array of data, including decades of proprietary fundamental research, company financial statements, and other relevant information, which help forecast the financial prospects of each security, identifying those that are priced favorably relative to their associated levels of risk.

Eric Moreau, executive director, and Andrew R. Stern, executive director, will serve as co-portfolio managers for the FDS Suite. Eric is a portfolio manager on the U.S. Disciplined Core Equity Team and previously held roles on the Equity Data Science, Core Research, and U.S. Disciplined Core Equity Quantitative Research teams at JPMorgan, where he integrated his passions for data science and financial analysis.

Andrew R. Stern is a portfolio manager on the U.S. Core Equity Team, where he is the lead portfolio manager on the U.S. Sustainable Leaders and U.S. GARP Funds, and a co-portfolio manager on the Fundamental Data Science suite of funds. Andrew is also a long-tenured member of the firm's Sustainable Investment Leadership Team (SILT), and a voting member of JPMAM's North America Proxy Committee.

"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," said Jed Laskowitz, Global Head of Asset Management Solutions at J.P. Morgan Asset Management. "We're thrilled to add the JPMorgan Fundamental Data Science suite of Active ETFs to our lineup."

The JPMorgan Fundamental Data Science Large Core ETF, Mid Core ETF, and Small Core ETF will be priced at 30, 35, and 40 basis points, respectively.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $3.2 trillion as of March 31, 2024, 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 $4.1 trillion in assets and $337 billion in stockholders' equity as of March 31, 2024. 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 the JPMorgan ETF before investing. The summary and full prospectuses contain this and other information about the ETF. Read the prospectus carefully before investing. Call 1-844-4JPM-ETF or visit www.jpmorganETFs.com to obtain a prospectus.

J.P. Morgan Funds are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA.

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SOURCE J.P. Morgan Asset Management

FAQ

What are the new ETFs launched by JPMorgan Asset Management (JPM) in the Fundamental Data Science Suite?

JPMorgan Asset Management launched three new ETFs in the Fundamental Data Science Suite: 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).

How do the new JPMorgan (JPM) Fundamental Data Science ETFs leverage data science?

The new JPMorgan ETFs leverage data science by employing a sophisticated investment approach that combines advanced data insights with fundamental research to build equity portfolios. This process integrates research, data insights, and risk management to extract valuable information from various sources.

What are the expense ratios for JPMorgan's (JPM) new Fundamental Data Science ETFs?

The expense ratios for the new JPMorgan Fundamental Data Science ETFs are: 30 basis points for the Large Core ETF, 35 basis points for the Mid Core ETF, and 40 basis points for the Small Core ETF.

Who are the portfolio managers for JPMorgan's (JPM) new Fundamental Data Science ETF Suite?

The co-portfolio managers for JPMorgan's new Fundamental Data Science ETF Suite are Eric Moreau and Andrew R. Stern, both executive directors at J.P. Morgan Asset Management.