JPMorgan Launches Global Hedged Equity Laddered Overlay ETF with Crash Protection

JPMorgan Asset Management has launched the JPMorgan International Hedged Equity Laddered Overlay ETF (HOLA), a fund that pairs a diversified portfolio of international stocks with a laddered options strategy to mitigate downside risk. The ETF seeks to track the MSCI EAFE Index and has an expense ratio of 0.50%. HOLA is designed to provide income from foreign equities while cushioning investors from sudden market plunges.

JPMorgan Asset Management has introduced the JPMorgan International Hedged Equity Laddered Overlay ETF (HOLA), a new ETF designed to provide international stock exposure with a focus on mitigating downside risk. The fund mirrors the MSCI EAFE Index while employing an active risk management strategy through a laddered options overlay. This approach aims to generate income from foreign equities while protecting investors from sudden market downturns.

HOLA pairs a diversified portfolio of international stocks with a proprietary laddered options strategy. The fund utilizes a model that favors both overvalued and undervalued stocks, seeking to widely track the MSCI EAFE Index while attempting to outperform the benchmark on a risk-adjusted return basis. The starting-line top holdings include well-known global companies such as ASML Holding NV, Nestle, Shell SHEL, and AstraZeneca AZN.

Geographically, HOLA leans strongly toward Europe (67.4%), with significant weightings to Japan (21.6%) and Asia-Pacific (9.7%). The ETF has an expense ratio of 0.50%, which is comparable to other actively managed international ETFs.

The defining feature of HOLA is its laddered options overlay, which layers protective puts with staggered expiration dates across the portfolio. This strategy is designed to reduce drawdowns without entirely capping upside, providing investors with stability in uncertain markets. The fund is patterned after JPMorgan’s U.S.-centric JPMorgan Hedged Equity Laddered Overlay ETF HELO, which experienced high investor demand for its defined-risk investment strategy during volatile times.

In a market characterized by increasing volatility, HOLA offers a unique approach to international investing. While passive ETFs like the iShares MSCI EAFE ETF (EFA) provide broad market exposure, HOLA’s active risk management strategy offers an alternative for investors seeking to mitigate risk while still participating in global equity markets.

For more information on HOLA and other JPMorgan ETFs, visit the official JPMorgan Asset Management website.

References:

[1] https://www.benzinga.com/etfs/new-etfs/25/07/46449274/jpmorgan-goes-global-with-hola-etf-stocks-plus-built%e2%80%91in-crash-protection
[2] https://www.etftrends.com/fidelity-t-rowe-price-jpmam-active-international-etfs-outperform-efa/
[3] https://finance.yahoo.com/quote/EFA/