JPMorgan, already the largest manager of actively managed fixed income ETFs, expanded its capabilities with a splash today. The JPMorgan Active High Yield ETF (JPHY) began trading today with the aid of a large external institutional client and $2 billion. According to the firm’s release, this is the largest launch of an active ETF.
Advisors and investors have embraced fixed income ETFs in 2025. As of mid-June, the industry was on pace to break the $303 billion net inflows annual record set last year.
Leading With Safety
JPMorgan manages $55 billion in active fixed income ETFs and has gathered approximately $10 billion of new money in 2025. The JPMorgan Ultra-Short Income ETF (JPST) is the industry leader, with $32 billion in assets. The fund takes on limited interest rate risk and still sports an impressive 4.5% 30-day SEC yield by owning investment-grade corporate bonds, asset-backed securities, and commercial paper.
JPST has pulled in a strong $3.7 billion thus far in 2025. Advisors and investors have sought an alternative to sitting on the sidelines in cash.
Going Beyond Cash to the Core of the Portfolio
Beyond ultra-short strategies, JPMorgan is fast becoming a go-to firm for many ETF investors. The firm has also seen strong demand for active fixed income ETFs that serve as more of the core of the portfolio. For example, the JPMorgan Core Plus Bond ETF (JCPB) added $1.8 billion YTD. The $6.7 billion fund offers a strong 4.9% yield by owning primarily investment-grade bonds, though approximately 20% is rated speculative grade or is not rated.
JCPB’s portfolio is a mix of agency mortgage-backed securities, corporate bonds, and Treasuries. However, JCPB’s average duration of 6.1 years is significantly higher than JPST’s 0.75.
Meanwhile, the JPMorgan Income ETF (JPIE) is a $4 billion active fixed income ETF that has received $1.4 billion of net inflows this year. The fund’s slightly higher 5.2% yield stems from exposure to more speculative-grade or nonrated bonds (approximately 35% of assets). However, JPIE’s average duration of 2.5 years provides some counterbalance.
Providing Active Edge in High Yield
While JPIE recently had 14% of assets in high-yield bonds, some investors want more exposure, and still benefit from JPMorgan’s expertise. That is what makes the JPHY launch notable.
“We’re excited to launch JPHY at this scale, marking the largest active ETF launch and extending our 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.”
Demand for high yield bond ETFs has been strong in 2025. The iShares Broad USD High Yield Corporate Bond ETF (USHY), a $23 billion offering, has pulled in $4 billion. Meanwhile, the iShares iBoxx $ High Yield Corporate Bond ETF (HYG), a $17 billion fund, added $1.9 billion YTD. JPHY is different from these index funds because it seeks to deliver stronger returns through security selection.
It is great to see JPMorgan continue to bring their best and brightest into the fixed income ETF landscape. While the initial fund assets stemmed from an institutional investor, advisors and their clients will be the beneficiaries.
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