JPMorgan Asset Management converted its JPMorgan Realty Income Fund into the JPMorgan Realty Income ETF (NYSEArca: JPRE) over the weekend. The actively managed JPRE invests primarily in stocks of real estate investment trusts (REITs) across the market capitalization spectrum.
The fund’s managers continuously screen the REIT universe, selecting companies that show superior financial strength, operating revenues, and attractive growth potential. The fund analyzes each REIT to evaluate whether each company’s current price fully reflects its long-term value.
The conversion of the $2.2 billion mutual fund is part of JPMAM’s plan to switch four mutual funds into ETFs this year. Last month, JPMAM converted its JPMorgan Inflation Managed Bond Fund (JIMAX) into the JPMorgan Inflation Managed Bond ETF (JCPI). The manager converted its JPMorgan Market Expansion Enhanced Index Fund (OMEAX) into the JPMorgan Market Expansion Enhanced Equity ETF (JMEE) earlier this month.
“As one of the fastest-growing asset management firms, we are positioning ourselves to deliver our best investment capabilities more rapidly through a broader range of vehicles including mutual funds and ETFs,” said JPMAM CEO George Gatch in the release announcing the conversions.
Gatch added: “We also believe the combination of the mutual fund and ETF boards will allow shareholders to benefit from the boards’ substantial combined experience and better position us to deliver the highest value-add capabilities in a rapidly evolving industry.”
The remaining fund that JPMAM plans to convert to an ETF this year is the JPMorgan International Research Enhanced Equity Fund (OEIAX).
“JPMorgan has already established a strong active ETF presence, but the manager’s commitment to be a leading provider is enhanced as they convert long-standing products into ETFs,” said Todd Rosenbluth, head of research at VettaFi.
JPRE has an expense ratio of 0.5%.
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