JPMorgan Launches 2 New Municipal Bond ETFs

JPMorgan Asset Management has launched two new municipal bond ETFs on the New York Stock Exchange.

The JPMorgan High Yield Municipal ETF (NYSE Arca: JMHI) invests in high yield munis exempt from federal income taxes. The JPMorgan Sustainable Municipal Income ETF (NYSE Arca: JMSI), meanwhile, seeks to deliver current income exempt from federal income taxes by investing in munis with use of proceeds that provide positive social or environmental benefits.

See more: “JPMorgan Launches Emerging Markets Equity, TIPS ETFs

JMHI may invest in securities rated below investment-grade, which offer a higher yield than investment-grade securities but involve a greater degree of risk. It currently has 384 holdings and carries an expense ratio of 0.35%.

JMSI uses a value-oriented approach to invest in a core fixed income portfolio of municipal bonds. It conducts an extensive risk/reward analysis of factors such as income, interest rate risk, credit risk, and the transaction’s legal/technical structure. It had 436 holdings at the time of its inception and carries an expense ratio of 0.18%.

JPMorgan continues to expand its ETF suite at a rapid pace. In May, the investment firm launched the JP Morgan BetaBuilders Emerging Markets Equity ETF (BBEM) and the JP Morgan BetaBuilders U.S. TIPS 0-5 Year ETF (BBIP). JMHI and JMSI bring the full JPMorgan suite of U.S. ETFs to 54 products with more than $118 billion in AUM, as of July 17.

“JPMorgan has emerged as one of the fastest-growing fixed income ETF providers,” said VettaFi’s head of research Todd Rosenbluth. “It is great to see them expand their municipal bond suite.”

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