JPMorgan Converts 4 Mutual Funds to Active ETFs

JPMorgan Asset Management, the $2.67 trillion investment arm of banking giant JPMorgan Chase, today completed the conversion of $1.5 billion in four mutual funds to active ETFs, tapping into the surge in demand for the assets. 

The funds, which hit the New York Stock Exchange July 17 and July 28, include the Sustainable Municipal Income ETF (JMSI), the High Yield Municipal ETF ( JMHI), the Limited Duration Bond ETF (JPLD) and the Equity Focus ETF (JPEF).  

So far, JMHI, which invests in high yield municipals, is down .6%. JMSI, which holds municipals and provides ESG benefits with proceeds, is down .14%, according to data from Bloomberg. 

J.P. Morgan announced plans to convert the four funds last year as it continues its push toward active ETFs offerings. The firm kicked off its conversions by switching nearly $10 billion of its mutual funds to ETFs in 2021.  

"As conversions, these ETFs have a track record and scale from day 1 and add to our active range of ETF providing tools for investors to meet their investment goals," said Bryon Lake, Global Head of ETF Solutions, J.P. Morgan Asset Management, in a press release statement. The company said the benefits investors have been seeking from the ETFs include trading flexibility, increased transparency and reduced fees.  

JPMorgan Active ETFs 

As active ETFs have surged in popularity among both retail investors and advisors, Morgan and other asset managers have answered investor demand for more variety.  

“The firm currently has about 16% of the AUM in active ETFs but has generated about a quarter of this year’s inflows into active ETFs, largely thanks to the JPMorgan Equity Premium Income ETF (JEPI),” said etf.com Senior Analyst Sumit Roy. 

The conversions coincide with J.P. Morgan Asset Management becoming the No. 1 firm year to date in net active flows across U.S. active ETFs, according to data from the company.  

“There’s no doubt that JP Morgan wants to maintain that leadership position in active ETFs, and this conversion plays a small part in helping them do that,” added Roy.  

Contact Lucy Brewster at [email protected].