JPMorgan Leads All in Active Fund Growth, Report Says
- JPM active ETFs and mutual funds have pulled in four times those of all rivals in past year, Bloomberg reports.
- Firm has JEPI, world’s largest active ETF, and JPST, world’s largest active bond ETF.
- JPM may pass Vanguard to take No. 3 spot in active management.
JPMorgan Chase & Co. (JPM) tops all rivals in active ETF and mutual fund growth so far this year, pulling in four times the inflows of all other active issuers, including Dimensional Fund Advisors and Franklin Resources (BEN), according to Bloomberg Intelligence.
New York-based JPMorgan is now the fourth-largest active-fund issuer, passing T. Rowe Price (TROW) last year and on target to overtake The Vanguard Group in the next year or two, according to the Wednesday note from Bloomberg Senior ETF Analyst Eric Balchunas. Of its $60 billion of inflows over the past year, $55 billion have been to active funds.
JPMorgan Active ETFs Gain Steam
JPMorgan is gaining steam as active ETFs—those with hands-on management as opposed to passive, index-style funds—flood the market to meet rising demand. Actively managed funds, which charge higher fees than their passive counterparts, now make up more than half of all exchange-traded funds, the total more than doubling over the past five years, Bloomberg recently reported.
“Investors’ appetite for active ETFs is rising,” the note read. About half of 50 investors in a survey last year said that they had increased allocations to active ETFs in the previous year and planned to do more, the note said. The survey, which included advisors and institutions, also found they were watching fees.
JEPI, JPST Dominate Active
JPMorgan manages a pair of heavyweight active ETFs: The $40.1 billion JPMorgan Equity Premium Income ETF (JEPI) is the world’s largest active ETF, and the JPMorgan Ultra-Short Income ETF (JPST), with $31.8 billion in assets, is the biggest active bond ETF.
Total Active Fund AUM ($1,000s)—Source: etf.com & Bloomberg Intelligence
The firm passed T. Rowe Price thanks to eight straight years of inflows, while T. Rowe had outflows over those years, the note said.
JPMorgan is the sixth-largest U.S. ETF issuer overall, managing $214.5 billion in 67 ETFs. It’s had total inflows this year of $28.3 billion, according to FactSet data.
