J.P. Morgan Unveils Buffered Equity Notes with Tech Sector Exposure

J.P. Morgan Chase & Co. has introduced a new financial product, the 5yr MQUSTVA Buffered Equity Notes, designed to offer investors exposure to the technology sector with a built-in safety buffer. The notes are linked to the MerQube US Tech+ Vol Advantage Index (Bloomberg ticker: MQUSTVA), which aims to provide dynamic exposure to the Invesco QQQ Trust (QQQ Fund), a fund tracking the Nasdaq-100 Index. The Underlying Asset of the index has been adjusted since February 9, 2024, to reflect an unfunded position in the QQQ Fund, replacing the previous E-Mini Nasdaq-100 futures position.

The notes come with a 15% buffer against losses, meaning investors are protected up to this threshold before any loss of principal occurs. The product has a maturity date of October 21, 2031, with review dates occurring monthly after an initial one-year non-call period. The notes also feature an automatic call provision, where if the index meets or exceeds the call value on any review date, investors receive their principal plus a call premium, which increases with each review date.

Investors should be aware of the risks involved, including the potential loss of principal, daily deductions of 6.0% per annum, and notional financing costs. The estimated value of the notes is set to be no less than $900 per $1,000 principal amount at issuance. Hypothetical examples provided in the prospectus illustrate various scenarios of returns, highlighting the potential for significant losses if the underlying index performs poorly.

The product is issued by JPMorgan Chase Financial Company LLC and guaranteed by JPMorgan Chase & Co., emphasizing the credit risk associated with these entities. The preliminary pricing supplement for the notes is available for further details, and interested parties are encouraged to review the associated risks and terms before investing.