New York-based J.P. Morgan Asset Management has launched an actively managed exchange-traded fund (ETF) that will tap into a popular universe of stocks.
The goal of the JPMorgan Active Growth ETF (JGRO), a pure growth ETF, will be to outperform the Russell 1000 Growth Index. "The strategy follows a bottom-up approach and aims to identify companies with growth potential that is underappreciated by the market," the firm said in a press release.
JP Morgan Asset Management joins a growing number of traditional active managers like T. Rowe Price and Capital Group in seeking to expand its presence in the ETF arena. The fund has an expense ratio of 0.44%, the bank's asset management arm said.
The ETF brings together two of the firm's growth strategies: the JPMorgan Large Cap Growth and Growth Advantage strategies. The former is a pure style approach using price momentum and the latter centers on large-cap holdings while retaining flexibility to invest in smaller companies.
“As investors look to navigate today’s unique market environment, JGRO provides access to opportunities across J.P. Morgan’s Growth Platform, combined with the benefits of the active ETF structure,” Bryon Lake, global head of ETF solutions at J.P. Morgan Asset Management, said in a statement.
This latest investment product brings J.P. Morgan’s total number of ETFs to 45 with more than $81 billion in assets under management, the company said, adding that it will complement J.P. Morgan’s other pure style offerings, including JPMorgan Active Value ETF (JAVA), an active equity ETF.
Taking charge of the management of JGRO will be Giri Devulapally, Timothy Parton, and Felise Agranoff, managing directors and portfolio managers at J.P. Morgan.
The trio have decades of experience in managing ETFs, the company said. They will also be relying on a team of growth research analysts who have an average of 16 years of experience. This team collectively oversees more than $93 billion in assets.