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JPMorgan Asset Administration has added two US fairness income-focused methods to its vary of actively managed change traded funds in Europe.
The US asset administration group has listed the JPMorgan US Fairness Premium Revenue Energetic (JEPI) and JPMorgan Nasdaq Fairness Premium Revenue Energetic Ucits ETFs (JEPQ) in London, Frankfurt and Zurich.
The corporate has three fairness premium earnings ETFs obtainable to European traders following the launch of its JPMorgan International Fairness Premium Revenue Ucits ETF in December final yr.
The asset administration arm of US lender JPMorgan stated the 2 new “outcome-oriented” methods for European shoppers had loved “sturdy demand” from traders within the US since their respective launches in Could 2020 and Could 2022.
This text was beforehand revealed by Ignites Europe, a title owned by the FT Group.
The US-domiciled model of the JPMorgan US Fairness Premium Revenue Energetic Ucits ETF (additionally identified by the ticker JEPI) is the most important energetic ETF globally, whereas the JPMorgan Nasdaq Fairness Premium Revenue Energetic Ucits ETF is “one of many fastest-growing energetic ETFs within the US”, in response to JPMorgan AM.
Every ETF within the three-strong vary “goals to supply traders constant month-to-month earnings and appreciation potential from fairness markets, with decrease volatility, by combining energetic fairness portfolios with index choices to strike a steadiness throughout yield, capital development and threat”.
The product suite makes use of an choices technique, whereby JPMorgan AM’s US core funding crew 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 earnings.
The premiums obtained from promoting these name choices are paid out month-to-month, along with the dividends obtained from the underlying equities held in every ETF.
JPMorgan AM, which manages $3.5tn in belongings globally, said earlier this yr that it aimed to extend ETF belongings to $1tn inside 5 years, greater than six instances the dimensions of its ETF enterprise of $160bn on the time.
Chief govt George Gatch stated the expansion of the ETF market was “some of the elementary adjustments” the trade was going by way of.
*Ignites Europe is a information service revealed by FT Specialist for professionals working within the asset administration trade. Trials and subscriptions can be found at igniteseurope.com
