JP Morgan Launches Pair Of Active ETFs

May 21, 2020

Today, J.P. Morgan rolled out two very different actively managed equity ETFs. The JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan International Growth ETF (JIG) cover domestic income securities and non-U.S. growth stocks, respectively.

JEPI comes with an expense ratio of 0.35%, while JIG charges 0.55%. Both ETFs list on the NYSE Arca.

Methodologies

The domestic income ETF “seeks current income while maintaining prospects for capital appreciation.” The fund mainly looks to replicate the returns of the S&P 500 Index while keeping a damper on volatility and providing consistent monthly distributions to investors.

JEPI primarily invests in securities in the S&P 500 Index, but can include other stocks. Up to 20% of the portfolio can be invested in equity-linked notes that are designed to generate income, according to its prospectus.

Meanwhile, JIG invests in non-U.S. large- and midcap securities that either have exhibited above average growth in the past or are expected to do so in the future. It can include stocks from developed and emerging markets, its prospectus says.

These are J.P. Morgan’s only equity ETFs that are actively managed rather than index-based. The addition of these funds brings the firm’s total ETF lineup to 37 funds. It has total ETF assets under management of more than $27 billion.

Contact Heather Bell at [email protected]

 

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