JPMorgan Debuts 2 New Active ETFs

JPMorgan Chase & Co., which manages $119.7 billion in 57 exchange-traded funds, has launched a pair of equity ETFs that tap into rising demand for actively managed funds.  

The JPMorgan Global Select Equity ETF (JGLO) and the JPMorgan International Value ETF (JIVE) both launched Sept. 14. The Global Select Equity ETF, which invests in large cap firms, will seek to beat the benchmark MSCI World Index, while the International Value ETF, which includes investments in emerging markets, will use the MSCI ACWI ex USA Value Index as its benchmark.  

JPMorgan, the biggest U.S. bank and the 7th largest U.S. ETF issuer, earlier this year converted a handful of mutual funds into active ETFs as demand surges. 

“Regardless of the market environment, investors demand an active strategy that seeks to capture the attractive return opportunities without taking an undue risk,” Helge Skibeli, international equities and global portfolio manager at J.P. Morgan Asset Management, said in a statement.  

JPMorgan and Active ETF Demand 

The exchange-traded funds launch as investors have been increasingly looking to actively managed funds to help beat broad indexes through portfolio management techniques.  

While the first active ETF debuted in 2008, the investment vehicle’s momentum accelerated in momentum in past years, as the ETF industry continues to draw assets away from mutual funds. Active ETFs have grown at a rate of 14% this year so far, while passive ETFs only grew 3%. In total, there are 1,167 active ETFs with a total of $448.35 billion. 

J.P. Morgan Asset Management boasts the largest active ETF on the market, the JPMorgan Equity Premium Income ETF (JEPI), which has $29.6 billion under management.  

The Global Select Equity ETF's lead manager is Helge Skibeli. The International Value ETF will be managed by a team led by Thomas Buckingham and Harold Yu, who will be co-lead portfolio managers.  

Bryon Lake, Global Head of ETF Solutions at J.P. Morgan Asset Management, said in the statement that the launches support “the commitment to our growing active ETF suite by offering clients new tools to help them succeed in the current environment.”  

Contact Lucy Brewster at [email protected].