JP Morgan Asset Management (JPAM) today launches more fixed income ETFs covering highly liquid instruments such as US Treasuries.
The firm made the move into the passive sphere with the hire of Bryon Lake from Invesco last year. The ETFs are part of their BetaBuilder range and include JPM BetaBuilders US Treasury Bond UCITS ETF and JPM BetaBuilders EUR Govt Bond UCITS ETF. Both ETFs are now available on the London Stock Exchange, Deutsche Boerse Xetra, Borsa Italiana and SIX Swiss Exchange.
The US Treasury ETF, with the ticker BBTR, tracks the J.P. Morgan Government Bond Index United States and is available in a variety of maturities, or as the firm says covering the ‘full yield curve’.
The European bond ETF, ticker BBEG, tracks the J.P. Morgan EMU Government Bond Index again in a range of different durations.
These products are available for a fee of 10 basis points although there are cheaper options in the market including Lyxor’s US Treasury ETF at just seven basis points.
As with all broad exposure ETFs, these products offer investors cheap access to the beta of a highly liquid asset class.
Mr Lake said in a statement: “: “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.”
JPAM has been building its ETF suite rapidly and now has $20 billion in assets under management across its 45 products.
As a firm, JPAM has $1.7 trillion in AUM with total assets of $2.6 trillion as of 31 December 2018.
