A recent filing from J.P. Morgan is a departure from its growing lineup of index-based smart-beta equity ETFs. The JPMorgan Diversified Alternative ETF will be an actively managed ETF focused mainly on hedge-fund-type strategies.
The fund’s strategies can be classified into four categories, according to the prospectus: equity long/short, event-driven and global-macro based. It will be able to invest in equities, fixed-income securities, commodities and currencies to execute those strategies, which it will use to capture the performance of specific factors such as momentum. In addition to being able to hold short positions, the fund will be able to invest in derivatives.
Up to 15% of the fund’s assets can be invested in a subsidiary based in the Cayman Islands, which affords the ETF certain tax advantages when it comes to its commodity investments.
The filing did not include a ticker or expense ratio, but it did indicate the fund is slated to list on the NYSE Arca exchange.
Contact Heather Bell at [email protected].