JPMorgan Launches Active ETF From JEPI Portfolio Manager

JPMorgan Launches Active ETF From JEPI Portfolio Manager

The fund will invest in U.S. large-cap stocks with an "options overlay" strategy.

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Finance Reporter
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Reviewed by: etf.com Staff
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Edited by: Mark Nacinovich

J.P. Morgan Asset Management is adding to its lineup of hugely popular active ETFs with another product managed by the strategist behind the biggest active ETF, Hamilton Reiner, who is a portfolio manager and head of U.S. equity derivatives. 

The JPMorgan Hedged Equity Laddered Overlay ETF (HELO) launched on Sept. 29. The fund invests in U.S. large-cap stocks with an options overlay. The ETF will trade put contracts while selling calls and will consist of three hedges lasting three months, with each hedge being a month apart. The exchange-traded fund uses this strategy to provide investors with lower volatility, according to a press release.   

The investment vehicle offers investors increased downside protection, which means the fund could also miss out on some upside gains. “Regardless of the environment, equity investors are focused on managing risk,” Reiner said in the statement.  

JEPI and JEPQ Tough Acts to Follow 

The ETF, which has a fee of 50 basis points, takes cues from Reiner’s options trading fixed-income hit, the JPMorgan Equity Premium Income ETF (JEPI), which has brought in $29 billion since it launched in 2020. The ETF also takes a page out of the strategy of the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ), which also offers investors some downside protection to mitigate volatility. JEPQ has garnered $5.4 billion in assets since the fund launched in May 2022.  

Todd Sohn, an analyst at Strategas Securities, called JEPI the “envy of the industry” for how much enthusiasm the fund has seen from investors. “You’re seeing many similar strategies come to market to try and take advantage of that demand,” said Sohn. “HELO is going to involve options, so the space is still growing,” he added.  

Other firms have also capitalized on the success of the fixed-income options trading fund. BlackRock launched its own version, an equity income call options strategy with the Blackrock Advantage Large Cap Income ETF (BALI), which debuted on Sept. 28. Goldman Sachs announced plans for two funds that mimic JEPI and JEPQ, the Goldman Sachs U.S. Equity Premium Income ETF and the Goldman Sachs U.S. Tech Index Equity Premium Income ETF—which have yet to launch.   

Contact Lucy Brewster at [email protected].  

Lucy Brewster is a finance reporter at etf.com covering asset managers, emerging technologies, and regulation. She hosts etf.com webinars and appears on Exchange Traded Fridays, etf.com’s flagship podcast. She previously was a finance fellow at Fortune Magazine where she covered markets, investment strategy, and venture capital. She has also been a freelancer writer at the publication Mergers & Acquisitions and a research fellow at the Historic Hudson Valley. 

She graduated from Vassar College in 2022 with a degree in History and was an editor of The Miscellany News, the college's award winning student run newspaper. 

Lucy lives in Brooklyn, NY, and in her free time she loves to run and find new recipes to cook.