JP Morgan Asset Management has listed five European ETFs in the Xetra segment on the Frankfurt Stock Exchange. These include three fixed income ETFs and two alternative beta strategies. As a target group, the fund provider sees first and foremost institutional clients.
The new ETFs are JPM USD Ultra-Short Income Ucits ETF, annual cost: 0.22%; JPM USD Emerging Markets Sovereign Bond Ucits ETF, 0.39%; JPM Betabuilder’s Euro Government Bond 1-3yr Ucits ETF, 0.10%; JPM Managed Futures ETF, 0.57%; and JPM Equity Long-Short Ucits ETF, 0.67%.
European investors increasingly appreciated the liquidity, transparency and cost-effectiveness of ETFs for such portfolio building blocks.
JP Morgan USD Ultra Short Income Ucits ETF focuses on short-term corporate and government bonds with high credit ratings (investment grade). The ongoing costs of 0.22% are capped to 0.18% by 28 February 2021, according to JP Morgan AM.
JP Morgan USD Emerging Markets Sovereign Bond Ucits ETF invests in emerging market debt. JP Morgan Betabuilder’s Eur Govt Bond 1-3yr Ucits ETF is looking for Euro denominated short dated government bonds. The JPMorgan Managed Futures Ucits ETF uses long and short positions in the futures markets. JP Morgan Equity Long-Short Ucits ETF builds long and short equity positions to implement factor strategies such as value, quality and momentum. Both alternative ETFs have the earnings target before cost money market return plus four percent, the volatility should not exceed 6 to 8% per year.
JP Morgan Asset Management plans to expand its ETF business in Europe. Christoph Bergweiler, head of JP Morgan Asset Management in Germany, Austria, Central and Eastern Europe and Greece commented: “In the current environment, it is becoming important to provide building blocks for portfolios that meet the complex requirements of professional investors. Our new products are precisely matched to the needs of ETF investors as liquid, transparent and cost-effective ETFs.”