J.P. Morgan Asset Management Launches Hedged Equity Laddered Overlay ETF: HELO

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Sep 29, 2023, 09:30 ET

Funds seek to deliver JPM active management expertise and risk controls through ETF structure

NEW YORK, Sept. 29, 2023 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of a new actively managed hedged equity ETF, JPMorgan Hedged Equity Laddered Overlay ETF (HELO) on the NYSE Arca. The outcome-oriented ETF invests in U.S. large-cap equities with a laddered options overlay designed to provide downside hedging relative to traditional equity strategies.

"Helping investors get invested and stay invested has always been our North Star," said Hamilton Reiner, portfolio manager and Head of U.S. Equity Derivatives. "Given our leadership in outcome-oriented strategies, we are very excited to bring HELO to market to provide another unique solution that suits the needs of our clients."

JPMorgan Hedged Equity Laddered Overlay ETF (HELO) is an active hedged equity strategy that invests in a portfolio of U.S. large cap stocks with an options overlay that seeks to provide downside protection, while foregoing some upside potential. HELO utilizes the same team and philosophy as the JPMorgan Hedged Equity Mutual Fund Series. Over the long-term, HELO seeks to capture a significant portion of the U.S. equity market returns with lower volatility than traditional equity strategies over the long-term, which should lead to competitive risk-adjusted returns.

The laddered hedge overlay of HELO will consist of three hedges lasting three months, that are each staggered one month apart. This "laddered" hedging approach aims to provide downside protection and upside capture.

"We listen to our clients and their request is to have a strategy like this available in the ETF wrapper," said Bryon Lake, Global Head of ETF Solutions at J.P. Morgan Asset Management. "Hamilton and team have demonstrated strong success with active ETFs like JEPI and JEPQ, and HELO is a great addition to our active ETF family."

HELO leverages an experienced equity portfolio management team, with nearly 70 years of combined experience, with industry veterans Hamilton Reiner, J.P. Morgan Asset Management Head of U.S. Equity Derivatives, and Raffaele Zingone, a portfolio manager in the U.S. Equity Core group.

The active hedged equity ETF is offered at a price point of 50 bps.

"Regardless of the environment, equity investors are focused on managing risk," explained Reiner. "We expect strong demand for HELO as investors look for outcome-oriented solutions that provide the hedged experience through the ETF wrapper."

J.P. Morgan Asset Management ranks as a top ten ETF issuer in the U.S. with respect to AUM, and number one year to date in net active flows across active ETFs in the U.S.¹

About J.P. Morgan Asset Management

J.P. Morgan Asset Management, with assets under management of $2.8 trillion (as of 6/30/2023), 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 $3.9 trillion in assets and $313 billion in stockholders' equity as of June 30, 2023. 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 an ETF before investing. The summary and full prospectuses contain this and other information about the ETF and should be read carefully before investing. To obtain a prospectus: Call 1-844-4JPM-ETF.

HELO Risk: Writing options on S&P 500 ETFs can reduce equity market risk, but it limits the opportunity to profit from an increase in the market value of stocks in exchange for upfront cash at the time of selling the call option. The value of positions in options on S&P 500 ETFs will fluctuate in response to changes in the value of the underlying ETF or index. Unusual market conditions or the lack of a ready market for any particular option at a specific time may reduce the effectiveness of the option strategies. As a result, the option strategies may not reduce the investment's volatility to the extent desired and could result in losses.

J.P. Morgan Distribution Services, Inc., member FINRA

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

¹ Data according to Bloomberg as of September 14, 2023.

SOURCE J.P. Morgan Asset Management