J.P. Morgan Asset Management has launched the inaugural edition of its “ETF Guide,” which will be updated quarterly to provide a foundation for advisors when working with the product.
“The ETF Guide is the cornerstone of the company’s ETF Insights program, a new global initiative that offers financial professionals and investors leadership and practical resources,” says the company’s press release.
Despite the popularity of ETFs, there is still a demand for information about the structure of the vehicle and market dynamics. The ETF Guide “helps meet that need with in-depth analysis, performance metrics, and investment trends,” the company adds.
Led by Chief ETF Strategist Jon Maier and his team, the guide is dedicated to educating advisors and their clients about opportunities in the sector.
“ETFs have become an indispensable investment structure for both retail investors and financial professionals, and the ETF Guide underscores our unwavering commitment to leading the discussion and driving innovation in the ETF space,” said Jed Laskowitz, Chief Investment Officer and Global Head of Asset Management Solutions at J.P. Morgan Asset Management.
The guide covers topics such as active ETFs, the fixed income ETF ecosystem, and other emerging trends. It also highlights the role ETFs can play in enhancing diversified portfolios and explains the “what” and “how” of their potential tax efficiency benefits, a critical area of interest for advisors and their clients.
Some key points from the ETF Guide:
– ETFs are a staple of the broader market, consistently accounting for around 28% of trading volume over the past 15 years. They have acted as crucial buffers during crises like COVID-19 by providing market liquidity. ETFs can also enhance liquidity in less liquid markets and can be used as price discovery vehicles, especially during times of market stress, J.P. Morgan adds.
– Active Fixed Income ETFs: Interest rates have peaked, making it an ideal time for fixed income investments. Passive indexes have limitations; investors should consider active management, as a significant percentage of active managers consistently outperform basic passive benchmarks over time.
– Tax Advantages of ETFs: ETFs, with their exchange trading and in-kind securities transfers, offer tax advantages compared to other investment structures. In 2023, only 61 out of 1,297 active ETFs distributed capital gains, with funds distributing gains averaging about one percent, highlighting the tax efficiency of the ETF structure, according to the report.
ETF Insights joins a suite of investor programs from J.P. Morgan Asset Management, including Portfolio Insights, Retirement Insights, and Market Insights, the latter celebrating its 20th year as an industry standard for keeping investors informed about the latest economic and investment trends.
In the past five years, ETF assets have grown to $160 billion, according to the firm.
To access J.P. Morgan AM’s ETF Guide, please visit the following link.
