JP Morgan Asset Management Active Fixed Income ETF launched


JPMorgan Asset Management has launched an active fixed income exchange traded fund (ETF), targeting debt securities.

ETF JPIE becomes operational

JPMorgan Asset Management, the asset management arm of JPMorgan Chase, announced the launch of its JPMorgan Income ETF (JPIE), an active fixed income ETF, earlier today. The ETF was created to track debt securities in the fixed income sector.

According to JPMorgan Asset Management, the ETF seeks to offer a return with lower volatility and attractive distributions. JPIE debuted on NYSE Arca earlier today with an expense ratio of 0.41%.

The actively managed and fully transparent ETF intends to generate monthly distributions by collecting dividends on numerous fixed income products. The fund will also keep the duration of its portfolio less than or equal to ten years.

The strategy behind this ETF is similar to that of the JPMorgan Income mutual fund. JPIE also shares the same management team with the JPMorgan Income mutual fund, which consists of Andrew Norelli, Thomas Hauser and Andrew Headley.

At the time of writing, the JPIE has a 30-day SEC yield of 3.38% after refunds and fee waivers. Likewise, the fund is a longer-lived alternative to the JPMorgan Ultra-Short Income ETF (JPST), which is currently worth $ 18.4 billion.

JPM share price up 37% year-to-date

Following the launch of JPIE, JPMorgan Asset Management now offers ten products in its range of active bond funds. The company’s full suite of 38 U.S. funds have more than $ 68 billion in assets under management.

JPM stock chart. Source: FXEMPIRE

JPMorgan Chase shares are up less than 1% since the US market opened a few hours ago. As of this writing, JPM is up 0.44% and is trading at $ 170.54 per share. JPMorgan has also been one of the top performers in the banking industry since the start of the year.

YTD, JPM is up 37.55%, while its 1 year performance increases the share value by over 74%. The share price could rebound if the US stock market continues to benefit from the excellent performance it has recorded in recent months.

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