JPM and Source launch ETF offering volatility exposure

J.P. Morgan and Source have launched a macro hedge ETF, allowing investors to gain long-term exposure to volatility.

The JP Morgan Macro Hedge US TR Source ETF is designed for sophisticated investors to be used as a hedging tool or to gain stand-alone volatility exposure.

JPM's Macro Hedge range of indices take a two-pronged approach: in times of market stress they aim to capture spikes in volatility, while in normal market conditions they aim for a positive return.

Head of equity and funds derivatives structuring at J.P. Morgan, Rui Fernandes said: "With more than a year of live track record and significant client investments in note and derivative format, the Macro Hedge family of indices has proven able to provide a robust tail hedge through equity market sell-offs, while mitigating the usual negative carry associated with traditional outright long volatility instruments."

The ETF is listed on the London Stock Exchange and trades in US dollars. It is registered for sale in Austria, Finland, France, Germany, Ireland, Italy (for institutional investors only), Luxembourg, the Netherlands, Norway, Sweden and the UK.