Financial giant JP Morgan has taken another step to entering the exchange traded fund (ETF) industry by outlining the benchmarks it plans to use for its forthcoming funds.
The benchmarks will track a basket of muni bonds and another of corporate bonds.
Olivier Ludwig for Index Universe reports that the muni bond benchmark is described as a broad-based, total-return index made up of fixed-rate, investment-grade bonds rated BBB or better with one to 12 years to maturity. [Van Eck Files For Andes ETF.]
The corporate bond benchmark will track a broad measure of the performance of liquid securities in the floating-rate, investment-grade U.S. corporate bond market. The index will track individual issuers, sectors and sub-sectors by their various ratings and maturities. [An Old ETF Provider Is New Again.]
That’s not all JP Morgan has planned: it filed for a line of actively managed ETFs earlier this year, making it one of the first big Wall Street firms to get in line to offer ETFs.
As these funds make their way to market, the ETF industry should get more cache and as a result, find itself comfortably positioned above the $1 trillion asset mark.
Tisha Guerrero contributed to this article.
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