New JPMorgan ETF Offers A Different Route To Income Investing
JPMorgan's New ETF Launch: JPMorgan Asset Management has launched the JPMorgan Mortgage-Backed Securities ETF (JMTG), expanding its active fixed income offerings following the success of its Active High Yield ETF (JPHY), which had a record $2 billion in initial assets.
Investment Strategy and Focus: JMTG primarily invests in investment-grade residential and commercial mortgage-backed securities, aiming for steady income with a low expense ratio of 0.24%, while targeting diversified exposure across various interest rate environments and credit cycles.
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Surge in Bond Demand: There has been a significant increase in demand for bonds, particularly U.S. government debt, with net inflows into fixed-income ETFs rising 70% to $5.3 billion in one week.
Return of Investor Appetite: U.S. Treasury ETFs saw a turnaround, attracting $2 billion after previous outflows, marking an inflow nearly 50% higher than the average over the past 13 weeks.
Vanguard's New ETF Launch: Vanguard Group is entering the high-yield bond ETF market with its first actively managed fund, the Vanguard High-Yield Active ETF (ticker VGHY), set to launch in Q3 with a low fee of 0.22%.
Market Context and Competition: This move comes amid significant inflows into junk-bond ETFs this year, while competitors like JPMorgan have also launched their own active high-yield ETFs, indicating a growing trend in the active ETF space.
JPMorgan's New ETF Launch: JPMorgan Asset Management has launched the JPMorgan Mortgage-Backed Securities ETF (JMTG), expanding its active fixed income offerings following the success of its Active High Yield ETF (JPHY), which had a record $2 billion in initial assets.
Investment Strategy and Focus: JMTG primarily invests in investment-grade residential and commercial mortgage-backed securities, aiming for steady income with a low expense ratio of 0.24%, while targeting diversified exposure across various interest rate environments and credit cycles.
Launch of J.P. Morgan Active High Yield ETF: J.P. Morgan Asset Management has launched the JPMorgan Active High Yield ETF (JPHY) with $2 billion in assets, marking the largest active ETF launch on record and reflecting growing investor interest in fixed income strategies amid market uncertainty.
Trends in Fixed Income ETFs: The demand for fixed income ETFs is rising, with inflows expected to exceed last year's record of $303 billion; J.P. Morgan currently manages $55 billion in actively managed fixed income ETFs and anticipates significant growth in this sector over the next five years.
Launch of JPMorgan Active High Yield ETF: J.P. Morgan Asset Management has launched the JPMorgan Active High Yield ETF (JPHY), backed by a $2 billion investment, marking it as the largest active ETF launch and reinforcing J.P. Morgan's leadership in active fixed income management.
Investment Strategy and Performance: The ETF aims to invest at least 80% of its assets in high-yield debt securities rated below investment grade, targeting a high level of current income, and is benchmarked against the ICE BofA High Yield Constrained Index with a pricing of 45 basis points.










