J.P. Morgan launches its largest active ETF anchored by $2B investment

J.P. Morgan Asset Management, part of JPMorgan Chase (NYSE:JPM), launched the JPMorgan Active High Yield ETF (BATS:JPHY) on Wednesday, backed by a $2B investment from a large institutional external client, the company said.

The new ETF marks the largest active ETF launch and extends J.P. Morgan’s position as the leading provider of active fixed income, said George Gatch, CEO of J.P. Morgan Asset Management. “This is just the beginning of a trend that should see active fixed ETF AUM quadruple in the next five years. As the largest U.S. active fixed income ETF manager, we will continue to expand our ETF lineup to fully reflect the depth of our fixed income platform.”

By strategically investing in high-yield debt securities, JPHY commits to allocate at least 80% of its assets to bonds and other det securities rated below investment grade. The ETF aims to deliver a high level of current income.

JPMorgan Active High Yield ETF (BATS:JPHY) is benchmarked against the ICE BofA High Yield Constrained Index and is priced at 45 basis points.

“The large anchor investment in JPHY signifies high conviction in our strategy and seasoned portfolio management team and we look forward to putting our active management skills to work,” said Robert Michele, global head of Fixed Income for J.P. Morgan Asset Management.

JPMorgan Active High Yield ETF (JPHY) was little changed at $50.24 in Wednesday afternoon trading.