Innovation

Lyxor and J.P.Morgan team up to launch an innovative range of risk factor ETFs

Lyxor ETF, the second largest issuer of ETFs in Europe in terms of inflows year to date, with almost EUR 50 billion in assets under management, is partnering with J.P. Morgan to launch a new range of risk factor ETFs.

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This approach reflects Lyxor’s commitment to developing Smart Beta ETFs in order to offer investors risk diversification solutions and targeted tools designed to improve a portfolio’s longterm performance.

Arnaud Llinas, Head of Lyxor ETFs and Indexing, says: “Constantly in search for innovative and wellperforming
investment solutions, we are excited to launch these risk factor ETFs with J.P. Morgan.
The growing interest for risk factor investing stems from investors’ need for portfolio allocation tools
focusing on the core drivers of equity markets performance. Lyxor’s approach focuses on five factors
(low size, value, momentum, low beta and quality) backed by in-depth research and empirically proven
to be very effective”
.

The indices were developed by global financial services provider J.P.Morgan, as part of its leading
Investible Indices business with approximately $25bn of client notional invested. Driven by client
demand, equity smart beta has been a key area of focus for the group over the last few years,
supported by research from J.P.Morgan’s Quantitative and Derivatives Strategy team.

Rui Fernandes, Head of EMEA Equities Structuring and Fund linked Products at J.P. Morgan,
comments: “We are delighted with this partnership with Lyxor. Investors are seeking more cost
efficient and risk adjusted alternatives as they continue to invest into equities, and ETFs present a
convenient format in which to do that. These products will be based on J.P. Morgan’s smart beta
indices, which are designed to allow investors to isolate specific sources of risk and return within their
portfolios in an effort to maximize performance.”

The new ETFs are expected to be listed in the course of the coming month.

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