JPMorgan launches European version of JEPI, the largest active ETF

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JPMorgan Asset Administration has added two US fairness income-focused methods to its vary of actively managed alternate traded funds in Europe.

The US asset administration group has listed the JPMorgan US Fairness Premium Earnings Lively (JEPI) and JPMorgan Nasdaq Fairness Premium Earnings Lively Ucits ETFs (JEPQ) in London, Frankfurt and Zurich.

The corporate has three fairness premium revenue ETFs obtainable to European buyers following the launch of its JPMorgan World Fairness Premium Earnings Ucits ETF in December final 12 months.

The asset administration arm of US lender JPMorgan mentioned the 2 new “outcome-oriented” methods for European shoppers had loved “sturdy demand” from buyers within the US since their respective launches in Might 2020 and Might 2022.

This text was beforehand printed by Ignites Europe, a title owned by the FT Group.

The US-domiciled model of the JPMorgan US Fairness Premium Earnings Lively Ucits ETF (additionally recognized by the ticker JEPI) is the biggest energetic ETF globally, whereas the JPMorgan Nasdaq Fairness Premium Earnings Lively Ucits ETF is “one of many fastest-growing energetic ETFs within the US”, in accordance with JPMorgan AM.

Every ETF within the three-strong vary “goals to supply buyers constant month-to-month revenue and appreciation potential from fairness markets, with decrease volatility, by combining energetic fairness portfolios with index choices to strike a stability throughout yield, capital progress and threat”.

The product suite makes use of an choices technique, whereby JPMorgan AM’s US core funding staff led by Hamilton Reiner sells index choices each week in opposition to the long-only fairness portfolios of the three ETFs, utilizing the premiums to generate revenue.

The premiums acquired from promoting these name choices are paid out month-to-month, along with the dividends acquired from the underlying equities held in every ETF.

JPMorgan AM, which manages $3.5tn in property globally, said earlier this 12 months that it aimed to extend ETF property to $1tn inside 5 years, greater than six occasions the scale of its ETF enterprise of $160bn on the time.

Chief govt George Gatch mentioned the expansion of the ETF market was “one of the crucial elementary adjustments” the business was going by means of.

*Ignites Europe is a information service printed by FT Specialist for professionals working within the asset administration business. Trials and subscriptions can be found at igniteseurope.com