JPMorgan Launches ETFs on Emerging Markets Equity, TIPS

On Thursday, JPMorgan Asset Management announced the launch of two new ETFs. The JP Morgan BetaBuilders Emerging Markets Equity ETF (BBEM) and the JP Morgan BetaBuilders U.S. TIPS 0-5 Year ETF (BBIP) trade on the Cboe Global Markets.

BBEM seeks investment results that closely correspond, before fees and expenses, to the performance of the Morningstar Emerging Markets Target Market Exposure Index SM. The fund attempts to approximate the index’s characteristics through a “representative sampling” investment approach.

BBEM carries an expense ratio of 15 basis points. Michael Loeffler, Nicholas W. D’Eramo, Oliver Furby, and Alex Hamilton will manage the fund.

See more: “J.P. Morgan Asset Management Launches Active China ETF

Meanwhile, BBIP seeks investment results that closely correspond to the ICE 0-5 Year US Inflation-Linked Treasury Index. The index consists of U.S. sovereign debt with interest and principal payments tied to inflation (TIPS). The fund also uses a representative sampling investment approach.

BBIP carries an expense ratio of seven basis points. Eric Isenberg, Naveen Kumar, Qiwei Zhu, Jonathan Msika, and Alvaro Quiros will manage the fund.

“With our BetaBuilder suite we work to pass along the scale and efficiencies of our global platform which can deliver these exposures at attractive price points,” said Bryon Lake, global head of ETF solutions, JPMAM.

JPMorgan Index Funds Gaining Traction

BBEM and BBIP bring the full JPMorgan suite of U.S. ETFs to 53 products with more than $100 billion in AUM, as of May 10. While gaining attention with its active funds, JPMAM is also seeing increased investor interest in its indexed ETFs. Passive funds like the JPMorgan BetaBuilders Europe ETF (BBEU) and the JPMorgan BetaBuilders Japan ETF (BBJP) had $9.5 billion and $7.6 billion in assets, respectively, as of May 11.

VettaFi’s head of research Todd Rosenbluth said: “Though known for active management, JPMorgan has gained traction with its low-cost, broad-market, index ETFs. These new ETFs can be used by advisors to make strategic or tactical allocations based on a client’s risk profile.”

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