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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

Ticker:

EFPLUS5D

Index Sponsor: 

JPMorgan Chase Bank, N.A.

Currency:

USD

Number of Underlyers:

19 ETFs + 1 ETN + Cash Equivalent

Volatility Target:

5%

Index Base Date:

December 31, 2014


Index Composition


Asset Class

Name

Ticker

Cap

Equities

50%

US Large Cap Equities

Vanguard S&P 500 ETF

VOO

20%

US Small Cap Equities

Vanguard Small-Cap ETF

VB

10%

Developed Large Cap Equities ex-US

Vanguard FTSE Developed Markets ETF

VEA

20%

Developed Small Cap Equities ex-US

iShares® MSCI EAFE Small-Cap ETF

SCZ

10%

Emerging Markets Equities

Vanguard FTSE Emerging Markets ETF

VWO

20%

Investment Grade Fixed Income

50%

US Long-Term Treasury Bonds

iShares® 20+ Year Treasury Bond ETF

TLT

20%

US Intermediate-Term Treasury Bonds

iShares® 7-10 Year Treasury Bond ETF

IEF

20%

US Treasury Inflation-Protected Securities

iShares® TIPS Bond ETF

TIP

10%

US Investment Grade Corporate Bonds

iShares® iBoxx $ Investment Grade Corporate Bond ETF

LQD

20%

US Short-Term Investment Grade Corporate Bonds

Vanguard Short-Term Corporate Bond ETF

VCSH

10%

Other Fixed Income

50%

US High Yield Corporate Bonds

SPDR® Barclays High Yield Bond ETF

JNK

20%

US Short-Term High Yield Corporate Bonds

PIMCO 0-5 Year High Yield Corporate Bond Index ETF

HYS

10%

US Leveraged Loans

PowerShares Senior Loan Portfolio

BKLN

10%

US PreferredStock

iShares® U.S. PreferredStock ETF

PFF

10%

Emerging Markets Bonds

iShares® J.P. Morgan USD Emerging Markets Bond ETF

EMB

10%

Alternatives

50%

US Real Estate Investment Trusts

Vanguard REIT ETF

VNQ

10%

Global Gold Miners

Market Vectors® Gold Miners ETF

GDX

20%

US Master Limited Partnerships

ETRACS Alerian MLP Infrastructure Index ETN

MLPI

10%

Commodity Futures

PowerShares DB Commodity Index Tracking Fund

DBC

10%

Gold

iShares® Gold Trust

IAU

10%

Cash

   50%

J.P. Morgan Cash Index USD 3 Month

JPCAUS3M


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.

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