JPMorgan Asset Management converted JPMorgan International Research Enhanced Equity Fund into the JPMorgan International Research Enhanced Equity ETF (NYSE Arca: JIRE). The fund invests primarily in companies domiciled in foreign developed markets.
JIRE seeks to outperform the MSCI Europe, Australasia, Far East (EAFE) Index over time while maintaining similar risk characteristics, including sector and geographic risks. The fund’s managers may modestly overweight equity securities that they consider undervalued while modestly underweighting or not holding equity securities that appear overvalued.
The conversion of the $5 billion mutual fund is part of JPMAM’s plan to switch four mutual funds into ETFs this year. In April, JPMAM converted its JPMorgan Inflation Managed Bond Fund into the JPMorgan Inflation Managed Bond ETF (JCPI). The manager converted its JPMorgan Market Expansion Enhanced Index Fund into the JPMorgan Market Expansion Enhanced Equity ETF (NYSE Arca: JMEE) and its JPMorgan Realty Income Fund into the JPMorgan Realty Income ETF (NYSE Arca: JPRE) last month.
JIRE was the fourth and final fund that JPMAM planned to convert to an ETF this year.
“As one of the fastest-growing asset management firms, we are positioning ourselves to deliver our best investment capabilities more rapidly through a broader range of vehicles including mutual funds and ETFs,” said JPMAM CEO George Gatch in the release announcing the conversions.
Gatch added: “We also believe the combination of the mutual fund and ETF boards will allow shareholders to benefit from the boards’ substantial combined experience and better position us to deliver the highest value-add capabilities in a rapidly evolving industry.”
“JPMorgan has already established a strong active ETF presence, but the manager’s commitment to be a leading provider is enhanced as they convert long-standing products into ETFs,” said Todd Rosenbluth, head of research at VettaFi.
JIRE has a net expense ratio of 0.24%.
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