JP Morgan Asset Management Expands Active ETF Range
Global Reach, Sustainable Focus
JP Morgan Asset Management has significantly expanded its active ETF range with the introduction of three new strategies: an all-continent equity ETF, a Paris-aligned benchmark (PAB) Europe ETF, and a European high-yield bond ETF. These new additions are listed on major European exchanges, including the London Stock Exchange, Deutsche Boerse, Borsa Italiana, and SIX Swiss Exchange.
Diversified Investment Opportunities
The JPM All Country Research Enhanced Index Equity Active UCITS ETF (JRAW) offers investors exposure to global large and mid-cap companies, benchmarked against the MSCI ACWI. This ETF, managed by Piera Elisa Grassi, Raffaele Zingone, and Lina Nassar, aims to overweight companies with strong forward-looking earnings potential while underweighting overvalued companies. With a total expense ratio (TER) of 0.25%, JRAW is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Sustainable Investing in Europe
The JPM Europe Research Enhanced Index Equity SRI Paris Aligned Active UCITS ETF (JSEE) seeks to generate long-term outperformance against the MSCI Europe SRI EU Paris Aligned Benchmark Overlay ESG Custom index. This ETF, also classified as Article 9 under SFDR, invests in a portfolio of European companies aligned with the Paris Agreement, applying the firm’s research enhanced methodology.
High-Yield Bond Opportunities
The JPM EUR High Yield Bond Active UCITS ETF (JEHY) becomes the firm’s second active high-yield ETF in Europe, offering investors access to a fully active European high-yield strategy with the benefits of the ETF structure. Managed by Peter Aspbury and Russell Taylor, JEHY aims to achieve long-term returns exceeding the ICE BofA Euro Developed Markets High Yield Constrained index of euro-denominated securities below investment grade, with a TER of 0.45%.
Commitment to Client Choice
Travis Spence, global head of ETFs at JPMAM, emphasized the firm’s commitment to broadening its existing suites of active ETFs, providing clients with more opportunities to align their investments with their financial goals and sustainability preferences.
A Prolific Year for Active ETF Launches
JPMAM’s recent product debuts contribute to Europe’s most prolific year for active ETF launches, with the continent’s active roster now standing at 136 products, according to ETFbook data. A recent survey by ETF Stream and JPMAM found that 49% of European professional investors plan to increase their allocation to active ETFs over the coming 12 months, indicating a strong demand for these investment products.
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