From Morningstar: 2025-03-05 08:01:48

Piera Elisa Grassi of J.P. Morgan Asset Management discusses the success of active ETFs in Europe, capturing over 50% of market share. Grassi attributes this to combining J.P. Morgan’s tradition of low tracking error and consistent alpha with the innovation of active ETFs, leading to the launch of multiple products. Grassi emphasizes the importance of marrying tradition with innovation for success in the ETF space.

Research enhanced index strategies offer consistent alpha at low tracking error, making them suitable for the ETF wrapper. This allows for broader client access, beyond large institutional mandates. Grassi highlights J.P. Morgan’s best-in-class fundamental research, strong connectivity between research analysts and portfolio management, and support from the Spectrum technological platform.

Grassi, named one of Morningstar’s ETF leaders, shares her 25-year career journey at J.P. Morgan, starting in risk management and later transitioning to managing money. Under her leadership, the team’s assets grew from $1 billion to $40 billion. Grassi emphasizes diversity within her team, with over 50% of portfolio managers being female, a significant contrast to industry statistics. She prioritizes hiring top talent and fostering diversity for success. 1. The stock market saw a significant drop today, with the Dow Jones Industrial Average falling by 500 points. Investors are concerned about rising inflation and potential interest rate hikes by the Federal Reserve.

2. A new study published in a leading medical journal found that the COVID-19 vaccine is 90% effective in preventing hospitalizations and deaths. The study analyzed data from over 100,000 individuals who received the vaccine.

3. The United Nations reported that global carbon dioxide emissions have reached a record high, despite efforts to reduce greenhouse gas emissions. The report highlights the urgent need for countries to take stronger action to combat climate change.

4. The US economy added 500,000 new jobs in the month of October, exceeding expectations. The unemployment rate has also dropped to 4.6%, the lowest level since the start of the pandemic. Economists are optimistic about the recovery.

5. NASA successfully launched a new spacecraft to study Jupiter’s moon Europa. The mission aims to search for signs of life on the icy moon, which is believed to have a subsurface ocean that could potentially support microbial life.



Read more at Morningstar: J.P. Morgan Manager: How Alpha Drives Active ETF…