A Look At JPMorgan's New Active Equity ETFs
In an industry known for its passively-managed low-cost index funds, active management is starting to make a comeback. JPMorgan becomes one of the bigger asset managers to enter the fray.
The company has launched the JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan International Growth ETF (JIG).
JEPI owns a portfolio of large-cap stocks and overlays an options selling strategy in order to boost income. The fund's early performance has been modest - it trails the S&P 500 by about 2% since its late May inception - but offers a current yield of nearly 12%. Its expense ratio of 0.35% is very attractive in the covered call ETF space.
JIG invests in both developed and emerging markets growth stocks, including all the big names, such as Alibaba, Tencent and Taiwan Semiconductor. The 0.55% expense ratio is less attractive than some of its index fund peers, but it has beaten a total international stock benchmark by 2%.