JP Morgan Expands ETF Suite with Two New EM Funds

JP Morgan Asset Management (JPMAM) has expanded its active exchange-traded fund suite with the launch of Europe’s first active emerging markets (EM) local currency bond ETF and an active Paris-aligned global EM strategy.

New Ways to Play Emerging Markets

The JPM Emerging Markets Local Currency Bond Active UCITS ETF (JLOC) and the JPM Global Emerging Markets Research Enhanced Index Equity SRI Paris Aligned Active UCITS ETF (JSEM) are listed on the London Stock Exchange (LSE), Deutsche Borse, Borsa Italiana and SIX Swiss Exchange with total expense ratios (TER) of 0.45% and 0.3%, respectively.

JLOC aims to outperform the JPMorgan Government Bond index and the Emerging Markets Global Diversified index and is managed by Didier Lambert, Julien Allard and Ishitaa Sharma, who will tap into JPMAM’s $43 billion emerging market debt (EMD) platform.

JLOC offers enhanced yield and return alongside diversification due to “idiosyncratic sources of return in EM local currency bonds,” according to the release.

Meanwhile, JSEM is benchmarked against the MSCI Emerging Market SRI EU Paris Aligned Benchmark Overlay ESG Custom index and actively invests in Paris-aligned EM stocks.

Much like its entire Research Enhanced Index (REI) range, JSEM uses a bottom-up stock selection process, by overweighting securities with the highest potential to outperform and underweighting those considered most overvalued.

Active Equity & Fixed-Income

Travis Spence (pictured), global head of ETFs at JPMAM said, “We are excited to introduce JLOC, the first active fixed-income ETF of its kind, designed for investors seeking exposure to local currency emerging market bonds, with the opportunity to generate positive risk adjusted returns through active management.

“Meanwhile, JSEM expands our suite of active equity SRI PAB ETFs into emerging markets, complementing JSEU, JSEG and JSEE—designed to help clients meet decarbonisation objectives, combined with our fundamentally active research-enhanced investment process.”

JPMAM extended its active fixed-income range in January with the launch of euro aggregate and government bond ETFs.

This article was originally published at etf.com sister publication ETF Stream.