J.P. Morgan launches $2 billion active high yield ETF targeting higher returns

From Yahoo Finance: 2025-06-25 11:54:00

J.P. Morgan Asset Management launched its largest active exchange-traded fund with a $2 billion investment from an external client. The JPMorgan Active High Yield ETF will invest in bonds rated below investment grade and will trade on the Cboe BZX Exchange, targeting higher returns in a shifting market.

Active funds are making a comeback as investors move away from passively-managed index funds. J.P. Morgan CEO George Gatch predicts a quadruple increase in active fixed ETF assets under management in the next five years, signaling a trend towards more hands-on investment strategies.

J.P. Morgan’s High Yield ETF targets investments below investment grade, offering higher risk but potential for greater returns. Benchmarked against the ICE BofA US High Yield Constrained Index, the ETF is priced at 45 basis points and has attracted a $2 billion anchor investment from an undisclosed external client.

J.P. Morgan Asset Management, a subsidiary of JPMorgan Chase, has a strong presence in the fund management industry. The company’s previous launch, the JPMorgan Equity Premium Income ETF, has been a major success since its inception in 2020, according to Morningstar.

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