JPMorgan Chase & Co. is seeking to introduce a new exchange-traded fund but will shutter two existing ETFs, according to regulatory filings and company announcements.
According to a recent filing with the U.S. Securities and Exchange Commission, the New York-based financial services giant has proposed a JPMorgan Flexible Income ETF (JFLI), which will seek to seek to balance income and growth.
The ETF will have a net expense ratio of 0.35% after fee waivers, according to the filing. It will invest in a broad range of income-producing securities, including debt and equity in U.S. and global markets, both developed and emerging.
JPMorgan Aims for Maximized Returns
JPMorgan Investment Management Inc., the fund’s advisor, will have the ability to allocate its portfolio into a range of assets, the filing stated. The fund may invest up to 100% of its assets in underlying funds that primarily invest in debt securities.
According to the filing, the proposed ETF may invest up to 90% of its total assets in equity securities, including common stocks and real estate investment trusts. It can also invest up to 70% in junk bonds and up to 35% in loan assignments and participations.
JP Morgan Asset Management also announced the liquidation of the JPMorgan BetaBuilders U.S. TIPS 0-5 Year ETF (BBIP) and JPMorgan BetaBuilders 1-5 Year U.S. Aggregate Bond ETF (BBSA), according to a press release. BBIP and BBSA have $1.5 million and $14.5 million in assets under management, according to etf.com data.
The last day of trading for both funds on the Cboe BZX Exchange will be Oct. 18, with liquidation set for Oct. 25, the company said. Shareholders who continue to hold shares on the liquidation date will receive cash equal to the net asset value of their shares.
These changes come as JPMorgan continues to expand its ETF presence. According to etf.com data, the firm currently manages 64 ETFs traded on U.S. markets, with total assets under management of $165.8 billion. Its largest fund is the JPMorgan Equity Premium Income ETF (JEPI), with $34.8 billion in assets.
The asset manager recently appointed Travis Spence to lead its global ETF business, which manages $190 billion in 102 ETFs worldwide. Spence is part of the asset management unit.
