JPMorgan Expands Active Lineup With 2 New Funds

J.P. Morgan Asset Management, an investment giant with $116 billion in 61 ETFs, has launched two new actively managed exchange-traded funds, further solidifying the firm’s dominance in the market of the increasingly popular investment vehicles.  

The firm announced the launch of the JPMorgan U.S. Tech Leaders ETF (JTEK) and the JPMorgan Healthcare Leaders ETF (JDOC) on Nov. 2.

JTEK invests in tech stocks, while the JDOC tracks healthcare and medical science equities, according to the firm’s press release. JTEK was launched on the Nasdaq exchange on Oct. 5, and JDOC started trading Nov. 2. 

Active ETFs Gaining Traction

Active ETF launches have exploded this year as investors look for gains beyond investing in broad, passive indexes. Some 75% of all U.S. ETF launches this year have been active, the highest percentage since the funds were first developed in 2008. In 2021, the previous record-breaking year, the number hit 64%.  

Just three firms have issued about half of the 1,200 actively managed ETFs in the market—JPMorgan, Dimensional Fund Advisors and First Trust.

JPMorgan operates the two largest active ETFs, including the JPMorgan Equity Premium Income ETF (JEPI), with nearly $29 billion in assets under management, and the JPMorgan Ultra-Short Income ETF (JPST), with $23 billion in assets under management.   

JTEK is operated by co-portfolio managers Joseph Wilson, a managing director, and Eric Ghernati, an executive director. JDOC is run by managing directors Matt Cohen and Holly Morris, along with executive director Dominic Valder. 

Each fund has an expense ratio of 0.65%, slightly below the average fees for actively managed ETFs of 0.69%, according to etf.com data.  

Technology and Healthcare

"Technology and healthcare play a vital role in investor portfolios," Bryon Lake, global head of ETF Solutions at J.P. Morgan Asset Management, said in a statement. 

JPMorgan has had some trouble with actively managed ETFs. Last month, it closed two ActiveBuilders-branded funds after they failed to gain significant inflows or beat their benchmarks.  

Contact Lucy Brewster at [email protected].