JP Morgan Efficiente Plus DS 5 (Net ER) Index
The JP Morgan Efficiente Plus DS 5 Index provides exposure to a diverse range of asset classes across a different geographic regions and employs a modern portfolio theory approach to asset allocation.
Overview
This JP Morgan Efficiente Plus DS 5 (Net ER) Index (“Index”) is a cross-asset allocation strategy based on modern portfolio theory which aims to achieve an optimized risk-return portfolio. The Index:
- Provides exposure to underylers that include 20 exchange-traded products plus a cash equivalent with access to a broad range of asset classes and geographic regions. The underlyers draw from four asset classes including equities, investment grade fixed income, other fixed income and alternatives.
- Seeks to allocate the underylers based on a rules-based portfolio construction methodology that utilizes momentum across the asset classes.
- Applies a daily volatility control mechanism that targets 5% volatility by varying exposure the Index takes to the monthly portfolio.
- Calculates performance in excess of the cash index and a daily deduction of 0.85% per annum fee.
Index Information
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Ticker:
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EFPLUS5D
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Index Sponsor:
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JPMorgan Chase Bank, N.A.
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Currency:
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USD
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Number of Underlyers:
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19 ETFs + 1 ETN + Cash Equivalent
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Volatility Target:
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5%
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Index Base Date:
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December 31, 2014
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Index Composition
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Asset Class
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Name
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Ticker
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Cap
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Equities
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50%
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US Large Cap Equities
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Vanguard S&P 500 ETF
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VOO
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20%
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US Small Cap Equities
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Vanguard Small-Cap ETF
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VB
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10%
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Developed Large Cap Equities ex-US
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Vanguard FTSE Developed Markets ETF
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VEA
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20%
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Developed Small Cap Equities ex-US
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iShares® MSCI EAFE Small-Cap ETF
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SCZ
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10%
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Emerging Markets Equities
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Vanguard FTSE Emerging Markets ETF
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VWO
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20%
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Investment Grade Fixed Income
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50%
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US Long-Term Treasury Bonds
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iShares® 20+ Year Treasury Bond ETF
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TLT
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20%
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US Intermediate-Term Treasury Bonds
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iShares® 7-10 Year Treasury Bond ETF
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IEF
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20%
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US Treasury Inflation-Protected Securities
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iShares® TIPS Bond ETF
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TIP
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10%
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US Investment Grade Corporate Bonds
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iShares® iBoxx $ Investment Grade Corporate Bond ETF
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LQD
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20%
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US Short-Term Investment Grade Corporate Bonds
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Vanguard Short-Term Corporate Bond ETF
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VCSH
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10%
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Other Fixed Income
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50%
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US High Yield Corporate Bonds
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SPDR® Barclays High Yield Bond ETF
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JNK
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20%
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US Short-Term High Yield Corporate Bonds
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PIMCO 0-5 Year High Yield Corporate Bond Index ETF
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HYS
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10%
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US Leveraged Loans
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PowerShares Senior Loan Portfolio
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BKLN
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10%
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US PreferredStock
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iShares® U.S. PreferredStock ETF
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PFF
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10%
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Emerging Markets Bonds
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iShares® J.P. Morgan USD Emerging Markets Bond ETF
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EMB
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10%
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Alternatives
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50%
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US Real Estate Investment Trusts
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Vanguard REIT ETF
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VNQ
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10%
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Global Gold Miners
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Market Vectors® Gold Miners ETF
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GDX
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20%
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US Master Limited Partnerships
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ETRACS Alerian MLP Infrastructure Index ETN
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MLPI
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10%
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Commodity Futures
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PowerShares DB Commodity Index Tracking Fund
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DBC
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10%
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Gold
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iShares® Gold Trust
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IAU
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10%
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Cash
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50%
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J.P. Morgan Cash Index USD 3 Month
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JPCAUS3M
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For information relating to Certificates of Deposit that are linked to the JP Morgan Efficiente Plus DS 5 (Net ER) Index or other indexes linked to market-linked products, please refer to the Incapital website or consult the respective offering documents.
The material contained herein is for informational purposes only, designed to illustrate an index created by the Index Sponsor that implies an investment strategy achieved through exposure to particular underlying financial instruments. The information contained herein is for illustrative purposes only and is not meant to forecast, imply, or guarantee the future performance of any particular investment or financial product, which will vary. An investment cannot be made directly in an index. An index is an unmanaged statistical composite and index performance does not include payment of any sales charges, expenses or fees an investor would pay to purchase the underlining securities or any financial product that may be linked to the index. Such costs would lower performance.
Incapital does not warrant the accuracy or completeness of any information contained herein and provides no assurance that this information is, in fact, accurate. The information contained herein is subject to change without notice. Any representations, projections and comparisons contained herein may not reflect the opinions of Incapital and may not be accurate either now or at a future date. Consequently, you should not rely on such representations, projections, comparisons or other opinions when selecting any investment product or making a recommendation to a customer. Current and future economic and other market events concerning an investment product or an index may cause the information provided herein to be incorrect. Past performance is not indicative of future results and should never be relied upon in making an investment decision or recommendation. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Incapital explicitly disclaims any responsibility for product suitability or suitability determinations related to individual investors.