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JP Morgan Active ETF solutions can help investors navigate today's markets with confidence. The firm's expertise in active management is a key differentiator.
JP Morgan has a long history of delivering strong returns through active management. Its experienced team of investment professionals is dedicated to finding opportunities that others may miss.
JP Morgan Active ETFs offer a range of strategies that cater to different investor needs. From growth to income, there's an ETF solution to suit every investor's goals.
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What Are Active ETFs?
Active ETFs are a type of exchange-traded fund that uses an active management strategy to select securities. This means that the fund manager actively chooses which securities to hold in the portfolio, rather than simply tracking a benchmark index.
The funds in J.P. Morgan's Active ETF lineup have varying levels of assets under management, ranging from $605.3 million to $29.37 billion. The JPMorgan Income ETF, for example, has $605.3 million in assets.
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The 1-year total return for these funds varies widely, from 3.6% to 35.4%. The JPMorgan Nasdaq Equity Premium Income ETF has a 1-year total return of 35.4%.
The expense ratios for these funds are also relatively low, ranging from 0.18% to 0.41%. The JPMorgan Municipal ETF, for example, has an expense ratio of 0.18%.
Here are the J.P. Morgan Active ETFs listed, along with their key characteristics:
Ticker | Name | AUM | 1-year Total Return (%) | Yield | Exp Ratio | Security Type | Actively Managed? |
---|---|---|---|---|---|---|---|
JEPQ | JPMorgan Nasdaq Equity Premium Income ETF | $5.22B | 35.4% | 7.9% | 0.35% | ETF | Yes |
JIRE | JPMorgan International Research Enhanced Equity ETF | $5.38B | 14.8% | 2.7% | 0.30% | ETF | Yes |
JEPI | JPMorgan Equity Premium Income ETF | $29.37B | 13.2% | 6.4% | 0.35% | ETF | Yes |
JPIE | JPMorgan Income ETF | $605.3M | 6.3% | 6.3% | 0.41% | ETF | Yes |
JMUB | JPMorgan Municipal ETF | $642.1M | 5.5% | 3.3% | 0.18% | ETF | Yes |
JPST | JPMorgan Ultra-Short Income ETF | $22.76B | 5.2% | 5.2% | 0.18% | ETF | Yes |
JEMA | JPMorgan ActiveBuilders Emerging Markets Equity ETF | $1.06B | 4.5% | 3% | 0.33% | ETF | Yes |
JCPB | JPMorgan Core Plus Bond ETF | $1.45B | 4.1% | 5.2% | 0.40% | ETF | Yes |
JMST | JPMorgan Ultra-Short Municipal Income ETF | $2.57B |
Understanding ETFs
ETFs are a popular investment option, but what exactly is an active ETF? In simple terms, an active ETF is a type of exchange-traded fund that uses a specific investment strategy to achieve a particular outcome, such as outperforming an index.
An active ETF provides access to these specific outcomes while maintaining the benefits of the ETF structure. This means that the investment decisions are independent of the vehicle, and the ETF is just a wrapper.
The JPMorgan Active ETFs, for example, have a range of investment strategies, including those that focus on generating income or achieving control in terms of duration, yield, or credit quality. Some of these ETFs, such as the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), have a 1-year total return of 35.4% and a dividend yield of 7.9%. Others, like the JPMorgan Municipal ETF (JMUB), have a 1-year total return of 5.5% and a dividend yield of 3.3%.
Here are some key characteristics of the JPMorgan Active ETFs:
Ticker | 1-year Total Return (%) | Yield |
---|---|---|
JEPQ | 35.4% | 7.9% |
JMUB | 5.5% | 3.3% |
These ETFs have expenses ranging from 0.18% to 0.41% and assets under management ranging from $600M to $30B.
Perfect for Portfolios
Using ETFs in your portfolio can be a great way to add some spice and growth potential.
Active management can play a big role in a portfolio, especially in high-growth sectors.
J.P. Morgan's new ETFs covering these sectors are perfect examples of where active management can shine.
Holding larger and broader passive funds, the two active ETFs can provide some much-needed growth potential.
High-growth potential comes with tax advantages, thanks to the creation/redemption mechanism for ETFs.
This mechanism allows managers to push off internal capital gains, saving investors from tax time headaches.
In high-growth sectors, such as tech and healthcare, this is a godsend for portfolios.
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What Is an ETF?
An ETF, or Exchange-Traded Fund, is a type of investment vehicle that offers a flexible and efficient way to invest in a variety of assets.
The ETF structure is a "wrapper" that can be used to package a range of investment strategies or "engines" that are designed to achieve specific outcomes.
An ETF can be designed to outperform an index, generate income, or achieve control in terms of duration, yield, or credit quality, making it a versatile investment option.
The ETF itself is independent of the investment strategy or "engine" that it contains, allowing investors to choose from a variety of options.
This means that investors can access specific investment outcomes, such as outperforming an index or generating income, all while maintaining the benefits of the ETF structure.
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J.P. Morgan Asset Management: Advancing Potential
J.P. Morgan Asset Management has rigorously designed its ETFs to push the boundaries of ETF investing, allowing investors to build diversified and competitively priced portfolios.
The company launched its first UCITS ETF in November 2017, marking the beginning of its foray into the ETF market. Since then, J.P. Morgan has brought many innovations to the space.
One notable innovation is its Research Enhanced Index Equity strategies, which now consists of ten ETFs. This is a testament to the company's commitment to expanding its ETF offerings.
J.P. Morgan Asset Management is the number 1 provider for active ETFs in the UCITS space and one of the largest globally. It has also been recognized for its achievements in the ETF market.
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Frequently Asked Questions
Is JEPI actively managed?
Yes, the JPMorgan Equity Premium Income ETF (JEPI) is actively managed, meaning a professional manager oversees its investment decisions. This active management approach helps generate income through option sales on U.S. large cap stocks.
What is the name of the world's largest actively managed ETF led by JP Morgan?
The world's largest actively managed ETF is led by JP Morgan and is known as JEPI. This ETF offers investors a unique blend of active management and the benefits of an exchange-traded fund.
Sources
- https://am.jpmorgan.com/us/en/asset-management/adv/investment-strategies/etf-investing/capabilities/active-etfs/
- https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-new-active-etf-jpmorgan-dividend-leaders-etf-jdiv-302260019.html
- https://www.prnewswire.com/news-releases/jp-morgan-asset-management-launches-two-active-etfs-jtek-and-jdoc-301975773.html
- https://www.dividend.com/active-etfs-channel/jpm-active-etfs-harnessing-sector-inefficiencies/
- https://am.jpmorgan.com/nl/en/asset-management/adv/insights/etf-perspectives/active-etfs/
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