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A JPMorgan Chase & Co. exchange-traded fund is the first active ETF to hit $10 billion assets under management in Europe.
The JPM US Research Enhanced Index Equity (ESG) UCITS ETF (JREU) has pulled in $3.6 billion so far this year, with assets swelling $1.8 billion over the last three months, according to data from TrackInsight. JREU’s managers aim to outpace the S&P500 by slightly overweighting companies with the highest potential to outperform and underweights companies considered the most overvalued. Managers also take into account environmental, social and governance issues and how they may affect cash flows at firms in which they invest.
“Our research enhanced index strategy has successfully been delivering value to investors for over 35 years,” said Travis Spence, JP Morgan Asset Management’s global head of ETFs. “Combining it into the ETF vehicle has made the strategy more accessible for many types of investors.”
Spence was named JP Morgan Asset Management’s head of ETFs Aug. 16. The 20-year veteran is based in London and reports to CIO and global head of asset management solutions Jed Laskowitz.
JREU’s 19% gain so far this year is roughly equal to the performance of the S&P 500 tracking SPDR S&P 500 ETF Trust (SPY). According to the S&P Dow Jones Indices’ SPIVA Europe scorecard, 71% of active U.S. equity funds failed to meet the S&P 500’s returns in one year.
Active ETFs are the catalyst for the growth of the European ETF market, gathering $6.8bn inflows in the first half of 2024.
Since its inception in 2018, JP Morgan Asset Management has cornered 42.5% of the active ETF market. The firm manages $31.9bn AUM in European ETFs, a small fraction of its $165.84bn American ETF business.
The New York-based firm manages 64 ETFs, including the $35.1 billion JPMorgan Equity Premium Income ETF (JEPI)it’s largest fund. If JREU was a U.S. fund, it would be JPMorgan’s fifth largest, just above the $7.17 JPMorgan BetaBuilders Canada ETF (BBCA).
This story originally appeared on etf.com sister publication ETF Stream.
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