Global X Debuts Two JPMorgan ETFs (EFFE, SCTO)
October 30 2014 - 7:00AM
ETFDB
Global X teamed up with JPMorgan’s indexes to launch two
new fund-of-funds last week, marking two unique entries into the
ETF world.
The JPMorgan Efficiente Index ETF (EFFE)
Taking the Latin word for efficient, EFFE takes aim at an
all-in-one strategy that seeks to invest in multiple asset classes
around the world. The fund will invest in five ETFs at a time that
are chosen from a list of 13 total funds. The fund rebalances each
month meaning that its exposure will stay up to date with the
happenings in the financial world. The funds EFFE will choose from
and their max weight at any point are listed below:
- S&P 500 ETF (VOO) –
20%
- Core S&P Small-Cap ETF (IJR) – 20%
- Europe Pacific (VEA) – 20%
- 20+ Year Treasury Bond ETF (TLT) – 20%
- iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) –
20%
- SPDR Barclays Capital High Yield Bond ETF (JNK) – 20%
- Emerging Markets ETF (VWO) – 20%
- iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) –
20%
- REIT ETF (VNQ) – 20%
- GSCI Commodity-Indexed Trust Fund (GSG) – 10%
- COMEX Gold Trust (IAU) – 10%
- TIPS Bond ETF (TIP) – 50%
- 1-3 Year Treasury Bond ETF (SHY) – 50%
The fund also has a cap on the max amount that an asset class
can take up in the fund, so there would never be a scenario when
EFFE is fully invested in bonds or equities, for example. EFFE
charges 0.86% for investment.
JPMorgan Sector Rotator Index ETF (SCTO)
SCTO tracks an index that rotates its sector exposure based on
overall market trends. In bullish periods, the fund will spread its
exposure across the nine Sector SPDRs and the SPDR Dow Jones
REIIT ETF (RWR). The fund will invest in no more than five sectors
at any point in time. In bearish periods, the fund will shift
exposure to be 100% invested in SHY, the Treasury ETF listed above.
SCTO rebalances monthly and also charges 0.86% for
investment.
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Disclosure: No positions at time of
writing.
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