#United States #New York #ETF #J.P. Morgan #Investment Management

J.P. Morgan Asset Management Launches Record-Setting Active ETF

In a significant move for the financial industry, J.P. Morgan Asset Management has announced the launch of the JPMorgan Active High Yield ETF (JPHY) on the Cboe BZX Exchange. This launch is particularly noteworthy as it is anchored by a staggering $2 billion investment from a large institutional client, marking it as the largest active ETF launch in history.

George Gatch, CEO of J.P. Morgan Asset Management, expressed enthusiasm about this launch, stating, "We're thrilled to introduce JPHY at this scale, solidifying our position as the premier provider of active fixed income solutions." He highlighted that this launch is just the beginning of an emerging trend, predicting that assets under management (AUM) for active fixed ETFs could quadruple over the next five years. With $55 billion in AUM, J.P. Morgan stands as the largest active fixed income ETF manager in the United States and aims to continually expand its offerings to showcase its extensive fixed income platform.

JPHY is designed for investors seeking high income through a strategic investment in high-yield debt securities. The ETF mandates that at least 80% of its assets are to be allocated to bonds and other securities rated below investment grade, thereby targeting a robust income level. It is benchmarked against the ICE BofA US High Yield Constrained Index and is competitively priced at 45 basis points.

Expert Management Team

The success of JPHY hinges not just on its size, but on the expertise of its management team. With decades of experience, the team's stability and proven track records are invaluable in navigating the complexities of the high-yield market. Key members include Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons. Robert Michele, the Global Head of Fixed Income at J.P. Morgan Asset Management, remarked, "JPHY reinforces our dedication to providing additional return opportunities in a market predominantly influenced by passive strategies. The substantial investment backing our fund demonstrates a strong belief in our strategy and the capabilities of our management team."

Benefits for Future Investors

The launch of JPHY with $2 billion in assets provides significant advantages for future investors. The portfolio management team aims to be fully invested at or shortly after the fund's launch, positioning it for greater market participation. This initial scale not only helps attract new investors quickly but is also expected to enhance liquidity and minimize trading costs, thus maximizing the investor experience.

With $10 billion in inflows year-to-date in 2025, J.P. Morgan Asset Management is leading the industry for active fixed income strategies in the U.S. A blend of accumulated industry expertise and a large capital base promises a solid prospect for JPHY as it evolves in the financial landscape.

About J.P. Morgan Asset Management

J.P. Morgan Asset Management is a global leader in investment management, with a reported $3.7 trillion in assets under management (as of March 31, 2025). The firm caters to a diverse clientele that includes institutions, retail investors, and high-net-worth individuals across various markets worldwide. The firm’s investment management services encompass equities, fixed income, real estate, hedge funds, private equity, and liquidity.

For more information about J.P. Morgan Asset Management and its extensive portfolio, visit jpmorgan.com/am.

Important Note: Investing in ETFs involves risks, including the risk of loss. Investors should carefully consider objectives and risks before investing. To obtain a prospectus, contact 1-844-4JPM-ETF.