JP Morgan Asset Management has launched two new fixed income ETFs in Europe as part of its ‘BetaBuilders’ product suite – low-cost, passively managed ETFs marketed as portfolio building blocks.

Bryon Lake, Head of International ETFs at JP Morgan Asset Management.

The funds are linked to in-house indices and provide exposure to US Treasuries and euro-denominated bonds of eurozone governments.

Each fund offers broad exposure to bonds across the yield curve.

JPM BetaBuilders US Treasury Bond UCITS ETF (BBTR LN) tracks the JP Morgan Government Bond Index United States.

JPM BetaBuilders EUR Govt Bond UCITS ETF (BBEG LN) tracks the JP Morgan EMU Government Bond Index.

They come with total expense ratios (TERs) of 0.10% and are available on London Stock Exchange, Deutsche Boerse Xetra, Borsa Italiana, and SIX Swiss Exchange.

JP Morgan currently offers three other BetaBuilders fixed income ETFs in Europe: the JPM BetaBuilders US Treasury Bond 1-3 yr UCITS ETF (JU13 LN), JPM BetaBuilders UK Gilts 1-5yr UCITS ETF (JG15 LN), and JPM BetaBuilders EUR Govt Bond 1-3 yrs UCITS ETF (JE13 LN). These ETFs target the short-duration end of the yield curve within the US Treasury, UK Gilt, and eurozone government bond markets respectively, and are also offered with TERs of 0.10%.

Commenting on the launch, Bryon Lake, Head of International ETFs at JP Morgan Asset Management, said, “Fixed Income ETFs are growing in popularity since they can add diversified and liquid bond exposure to an investment portfolio with a level of simplicity and transparency that’s not possible when investing in global bond markets directly. Our BetaBuilders ETF suite is designed to offer clients efficient access to market-cap weighted building block solutions.”

JP Morgan recently introduced its first BetaBuilders equity ETF in Europe. With a TER of just 0.04%, the JPM BetaBuilders US Equity UCITS ETF, which provides exposure to the large- and mid-cap segments of the US equity market, matches the cost of Europe’s cheapest ETF.