JPMorgan Active Developing Markets Equity ETF (JADE)

Overview

JADE is an investment fund that predominantly focuses on equities within emerging markets. The fund utilizes an active management strategy to target stocks across a wide array of market capitalizations, showing a particular preference for entities within the large- and mid-cap sectors. It employs a meticulous bottom-up approach in stock selection, with a dual focus on identifying growth and value potential based on the principles of sustainable earnings and effective capital management. JADE’s investment philosophy involves a thorough two-part analysis aimed at evaluating and ranking companies according to their medium-term returns and long-term growth potentials. Environmental, Social, and Governance (ESG) considerations are integrated into the fund’s evaluation process to identify key financial issues and engage with issuers, although these factors do not exclusively guide investment decisions. Additionally, the fund incorporates the use of derivatives and currency forwards as part of its risk management strategy, occasionally hedging back to the U.S. dollar. The disposition of holdings may occur if there's a decline in confidence towards a security, a shift in issuer fundamentals, unattractive valuations, or when more favorable investment opportunities emerge. Investors in JADE's fund should anticipate paying a higher expense ratio in exchange for the specialized management expertise provided.

Products and Services

JADE's investment offerings are designed to cater to investors seeking exposure to emerging markets through a managed portfolio of equities. Below is a detailed overview of the primary products and services offered by JADE:

• Active Management in Emerging Markets

JADE focuses on actively managing a portfolio of equities tied to emerging markets. By employing a strategic selection of stocks across various market caps, primarily favoring large- and mid-cap stocks, JADE aims to tap into the potential of emerging markets for its investors.

• Bottom-up Stock Selection Approach

The fund adopts a bottom-up approach to stock selection, concentrating on the growth and value potential grounded in principles of sustainable earnings and robust capital management. This meticulous selection process assists in uncovering investment opportunities with promising returns.

• Two-part Company Analysis

Companies are meticulously evaluated and ranked via a comprehensive two-part analysis that focuses on medium-term returns and long-term growth prospects. This thorough analysis ensures that investments are placed into companies with strong potential for success.

• ESG Considerations

ESG factors are incorporated into the fund’s analysis to identify key financial issues and facilitate engagement with issuers. Although these considerations are part of the evaluation, they do not single-handedly dictate investment decisions, ensuring a balanced approach to investing.

• Risk Management through Derivatives and Currency Forwards

To hedge against potential risks, JADE employs derivatives and currency forwards. This strategy is crucial for managing market volatility and protecting the investment portfolio’s value, particularly in the unpredictable climates of emerging markets.

• Flexible Investment Positioning

The fund’s investment positions may be adjusted or sold off if there's a shift in the confidence in a security, change in issuer fundamentals, occurrence of unattractive valuations, or discovery of superior investment opportunities. This flexibility ensures that the portfolio remains optimized for performance.