JP Morgan Asset Management has reorganized two mutual funds providing exposure to segments of the municipal bond market into actively managed ETFs.
JP Morgan has converted two municipal bond mutual funds into actively managed ETFs.
The JPMorgan Sustainable Municipal Income ETF (JMSI US) and JPMorgan High Yield Municipal ETF (JMHI US) have been listed on NYSE Arca, coming to market with $230 million and $240m in assets, respectively.
The JPMorgan Sustainable Municipal Income ETF invests in a core fixed income portfolio of municipal bonds whose proceeds are specifically earmarked for projects with positive social or environmental benefits.
The fund uses a value-oriented approach that includes extensive analysis of risk and reward factors such as income, interest rate risk, credit risk, and legal/technical structures.
The ETF comes with an expense ratio of 0.18%.
The JPMorgan High Yield Municipal ETF, meanwhile, invests in high-yielding municipal bonds with up to 100% of the portfolio permitted to be allocated to securities rated below investment grade.
The fund comes with an expense ratio of 0.35%.