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Cheapest U.S. ETF Launch Ever: JPMorgan's Strategy in Focus

Neena Mishra
The U.S. economic growth in the first quarter breezed past expectations and marked the best first-quarter growth in four years. These ETF areas should gain from this momentum.
  • (1:00) - JPMorgan's BetaBuilder ETFs: BBUS & BBSA
  • (4:20) - ETF Strategies and Future Growth Plans for JPMorgan
  • (12:20) - JPMorgan’s Activley Managed Bond ETFs: JPST
  • (16:45) - What Is ETF Distribution?
  • (22:50) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I talk with Jillian DelSignore, Executive Director and Head of ETF Distribution at JPMorgan Asset Management. Jillian is also co-founder and global co-president of Women in ETFs.

We start with JPMorgan’s recent launches--the JPMorgan BetaBuilders U.S. Equity ETF BBUS and the JPMorgan BetaBuilders 1–5 Year U.S. Aggregate Bond ETF BBSA--that are the cheapest products in their respective classes.

BBUS provides diversified access to U.S. large and mid-cap stocks at a cost of just 0.02%--making it the cheapest ever ETF listed in the U.S., and BBSA, with an expense ratio of 5 basis points, is the cheapest short-term bond ETF.

JPMorgan is one of the largest asset and wealth managers in the world with $1.7 trillion under management but the company made a late entry in the ETF industry. JPMorgan Asset Management launched its first ETF—the JPMorgan Diversified Return Global Equity ETF JPGE--in June 2014, followed by the JPMorgan Diversified Return International Equity ETF JPIN in November 2014.

The bank made a big push last year with BetaBuilders suite of low cost ETFs, changing its focus from relatively expensive, specialized products earlier.

JP Morgan had some of the most successful ETF launches last year, like the JPMorgan BetaBuilders Japan ETF BBJP that has gathered over $3.3 billion in assets. The company is the 10th-largest US ETF issuer now—with 34 ETFs and more than $20 billion in AUM across equity, fixed income and alternatives categories. Many of these products are cheapest in their respective classes. Jillian explains how they have leveraged their expertise and success in asset management to bring a full range of active, strategic beta and passive ETF options to investors.

The JPMorgan Ultra-Short Income ETF JPST, with over $5 billion in assets, is one of the most popular actively managed bond ETFs. It aims to deliver current income while managing risk. The JPMorgan U.S. Aggregate Bond ETF JAGG, which made its debut in December last year, is the cheapest actively managed bond ETF.

We have seen a lot of investor interest in actively managed bond ETFs because fixed income landscape is generally difficult to navigate. Further, many actively managed bond funds have managed to outperform the broader indexes, unlike actively managed stock funds. Out of 10 JPM’s fixed income ETFs, eight are actively managed. Jillian explains why active management is important in fixed income.

Tune into the podcast to learn more about JPMorgan’s ETF lineup and future growth plans.

Jillian also talks about her role as head of ETF distribution, and her work with Women in ETFs—an organization that has grown immensely since its founding about five years back.

Please visit JPMorgan website if you want to learn more about these ETFs. Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com .

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JPMorgan Diversified Return International Equity ETF (JPIN): ETF Research Reports
JPMorgan U.S. Aggregate Bond ETF (JAGG): ETF Research Reports
JPMorgan BetaBuilders Japan ETF (BBJP): ETF Research Reports
JPM-BBLD 1-5YUA (BBSA): ETF Research Reports
JPM-BBLD US EQ (BBUS): ETF Research Reports
JPMorgan Ultra-Short Income ETF (JPST): ETF Research Reports
JPMorgan Diversified Return Global Equity ETF (JPGE): ETF Research Reports
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