Bryon Lake, Managing Director, Head of Americas ETF at J.P. Morgan Asset Management met with Julie Cooling, Founder & CEO, RIA Channel to discuss the value of actively managed ETFs and the firm’s suite of income solutions.
Earlier this year, investors were introduced to the semi-transparent ETF. This new type of exchange-traded product aimed to bridge the cost and tax efficiency of an ETF with the potential outperformance of an actively managed strategy. The approval of the semi-transparent structure eased restrictions around disclosing daily holdings, and gave active managers the ability to keep their security selections somewhat protected.
While other active managers were adopting this new semi-transparent ETF structure, J.P. Morgan launched two 100% transparent active equity ETFs: The JPMorgan Equity Premium income ETF (JEPI) and the JPMorgan International Growth (JIG). JEPI is an option overlay strategy that seeks to buffer income while managing downside volatility. Lake explains that these transparent actively managed equity products aim to deliver the best of J.P. Morgan through the technology of an ETF wrapper. Actively managed ETFs give investors the flexibility to help navigate market volatility and achieve long-term outperformance.
J.P. Morgan also offers a suite of active fixed-income ETFs: the JPMorgan Ultra-Short Income ETF (JPST), the JPMorgan Municipal ETF (JMUB), and the JPMorgan Ultra-Short Municipal Income ETF (JMST). JPST is an ultrashort bond ETF that focuses on delivering current income in uncertain environments.
Lake started his career as one of PowerShares’ early employees. Betting big on ETFs, Lake helped build the then small PowerShares startup to an internationally renowned multi-billion dollar firm. In 2017 Lake left Invesco to help lead and reimagine ETF Distribution at J.P. Morgan Asset Management.
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