This is just the start. Bloomberg Intelligence estimates that active managers could bring $1 trillion to the ETF industry through the mutual fund conversions as well as other internal asset moves within the next ten years.
Last year, ETFs (both passive and active) took in $500 billion while mutual funds lost about as much. In 2021, mutual funds have attracted roughly $60 billion—mostly in fixed-income products—but that pales in comparison to the intake of more than $530 billion for ETFs.
JPMorgan manages 129 mutual funds with $899 billion in assets, according to the firm. Its ETFs currently have about $60 billion, making it one of the top-10 largest issuers, data compiled by Bloomberg show.
“It's not just like flipping a switch—we really want to think about existing shareholders that are investing in these and future investors,” said Bryon Lake, head of Americas ETFs at JPMorgan. “Investors just continue to embrace the ETF technology as a way to build portfolios.”
—With assistance from Sam Potter.
This article was provided by Bloomberg News.