Traditional Active Strategies Are Well Suited in Efficient ETF Wrapper

Asset managers are looking at exchange traded funds as a new tool to bring their innovative active strategies to a broader audience.

“I think it speaks to the technology of the ETF wrapper,” Bryon Lake, Managing Director, Head of Americas ETF Distribution, JP Morgan Asset Management, said at the Inside ETFs conference.

“To me, it’s the technology. What you put inside of it is the engine, the investment engine behind it. So, we’re J.P. Morgan. We’re really excited about using that technology. Sure, we deliver passive. We deliver smart beta. But we are using some of our best-in-class proprietary capabilities to deliver it through the ETF technology

For example, investors may look to a fund like the actively managed JPMorgan Ultra-Short Income ETF (JPST) as a popular way to access the short-end of the yield curve.

The ultra-short duration bond strategy leverages the expertise of J.P. Morgan’s Global Liquidity business. Many are looking for a safe way to park their cash and reduce risk exposures, and with something like JPST, investors can utilize an innovative solution to build more robust portfolios.

JPST tries to provide current income while seeking to maintain low volatility of principal by investing in investment-grade, U.S.-dollar-denominated short-term fixed, variable, and floating-rate debt. The fund can include corporate securities, asset-backed securities, mortgage-backed and mortgage-related securities, and high-quality money market instruments such as commercial paper and certificates of deposit.

Watch Bryon Lake Discuss Active Strategies:

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