JPMorgan AM Debuts Active Euro High-Yield Bond ETF

JP Morgan Asset Management (JPMAM) has extended its fixed income ETF range with an actively managed high-yield bond strategy.

The JPM USD High Yield Bond Active UCITS ETF (JPHY) is listed on the London Stock Exchange, Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange with a total expense ratio (TER) of 0.45%.

JPHY is benchmarked against the ICE BofA US High Yield Constrained index, which is comprised of U.S. dollar denominated high-yield corporate bonds from developed markets.

JPMorgan Bolsters Euro Active Fixed Income ETF Suite

The ETF will rely on JPMAM portfolio managers and credit analysts who will seek to identify mispriced securities and adapt to market cycle changes, with the aim of actively managing risk and delivering outperformance.

Like many ETFs within the firm’s roster, JPHY incorporates ESG criteria and is categorized Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Travis Spence, global head of ETFs at JPMAM, said, "Launching JPHY is a significant milestone in our commitment to providing innovative active fixed income investment solutions.”

JPHY marks the tenth strategy in JPMAM’s active fixed income UCITS ETF suite, adding to aggregate, corporate, ultra-short, and sustainable bond exposures.

“Active management is not only proven but preferred in fixed income and with the additional benefits that ETFs provide investors, we believe that active fixed income ETFs will be a key driver for the overall ETF industry,” Spence added.

There were just 45 active fixed income ETFs in Europe by Nov. 14, according to data from ETFbook, with six launches covering the high yield segment since the start of 2020.

However, the segment is enjoying a pick-up in momentum, with $235 million in net new assets in 2023 increasing more than tenfold to more than $2.8 billion in inflows so far this year, as of Nov. 14.

JPHY also arrives a month after JPMAM expanded its premium income suite with two US equity ETFs.

Last week, the firm was awarded ETF Issuer Of The Year and Active ETF Of The Year at the ETF Stream Awards 2024.

This article was originally published on our sister site, etfstream.com.