JP Morgan Asset Management has expanded its suite of European ETFs with the launch of a fundamentally driven, actively managed high yield bond strategy.
Travis Spence, Global Head of ETFs at JP Morgan Asset Management.
The JPM USD High Yield Bond Active UCITS ETF has been listed on the London Stock Exchange in US dollars (Ticker: JPHY LN) and pound sterling (Ticker: JPYH LN), the SIX Swiss Exchange in US dollars (Ticker: JPHY SW), Deutsche Börse Xetra in euros (Ticker: JPUA GY), and Borsa Italiana in euros (Ticker: JPHY IM).
Both distributing and accumulating share classes are available to meet the diverse needs of investors.
The launch aligns with JP Morgan’s broader outlook on the global fixed income ETF market, which it forecasts to grow to $6 trillion by 2030. Within that, the active fixed income ETF segment is expected to reach $1.7 trillion.
Commenting on the launch, Travis Spence, Global Head of ETFs at JP Morgan Asset Management, said: “Active management is not only proven but preferred in fixed income. With the additional benefits that ETFs provide, we believe that active fixed income ETFs will be a key driver for the overall ETF industry. We remain committed to offering investors a comprehensive suite of active portfolio building blocks across the fixed income spectrum.”
Spence added: “Launching JPHY is a significant milestone in our commitment to providing innovative active fixed income investment solutions. JPHY exemplifies the enhanced liquidity and transparency that ETFs offer, particularly in times of market volatility. Our deep credit research and active management expertise offer a compelling alternative to passive strategies and serve as a valuable tool for investors navigating today’s markets.”
The fund builds on JP Morgan’s $55 billion US high-yield bond platform and leverages the expertise of a well-established team of portfolio managers and credit analysts including Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons.
It seeks long-term outperformance relative to the ICE BofA US High Yield Constrained Index, a broad benchmark of US dollar-denominated high yield corporate bonds issued in developed markets.
JP Morgan employs a globally integrated, research-driven investment process that combines fundamental, quantitative, and technical analysis to identify opportunities across sectors and issuers. The approach relies heavily on bottom-up security selection, assessing relative value within the high-yield bond universe. The selection process is also aligned with ESG factors, leading the fund to be classified as Article 8 under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
By focusing on identifying mispriced securities and dynamically adapting to market cycles, the portfolio management team aims to actively mitigate risks and deliver above-market returns across varying market conditions.
JPHY comes with an expense ratio of 0.45%.