JPMorgan Asset Management has launched two new municipal bond ETFs on the New York Stock Exchange.
The JPMorgan High Yield Municipal ETF (JMHI ) invests in high yield munis exempt from federal income taxes. The JPMorgan Sustainable Municipal Income ETF (JMSI ), meanwhile, seeks to deliver current income exempt from federal income taxes by investing in munis with use of proceeds that provide positive social or environmental benefits.
JMHI may invest in securities rated below investment-grade, which offer a higher yield than investment-grade securities but involve a greater degree of risk. It currently has 384 holdings and carries an expense ratio of 0.35%.
JMSI uses a value-oriented approach to invest in a core fixed income portfolio of municipal bonds. It conducts an extensive risk/reward analysis of factors such as income, interest rate risk, credit risk, and the transaction’s legal/technical structure. It had 436 holdings at the time of its inception and carries an expense ratio of 0.18%.
JPMorgan continues to expand its ETF suite at a rapid pace. In May, the investment firm launched the +JP Morgan BetaBuilders Emerging Markets Equity ETF+ (BBEM ) and the +JP Morgan BetaBuilders U.S. TIPS 0-5 Year ETF+ (BBIP ). JMHI and JMSI bring the full JPMorgan suite of U.S. ETFs to 54 products with more than $118 billion in AUM, as of July 17.
“JPMorgan has emerged as one of the fastest-growing fixed income ETF providers,” said VettaFi’s head of research Todd Rosenbluth. “It is great to see them expand their municipal bond suite.”
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