One of the biggest names in global finance enters the field with two active ETFs on the TSX
JP Morgan Asset Management (JPMAM) announced its expansion into Canada with the launch of two active ETFs for Canadian investors.
Starting October 1, Canadians will be able to invest in the JPMorgan US Equity Premium Income Active ETF and the JPMorgan Nasdaq Equity Premium Income Active ETF, which will be listed on the Toronto Stock Exchange.
This launch aligns with JPMAM's strategy of expanding its presence in Canada, offering Canadian investors access to global investment strategies through financial advisors.
Travis Hughes, head of Canada at JP Morgan Asset Management, said, “The introduction of the JP Morgan ETFs in Canada is an important advancement of our Canada market strategy, with these offerings representing the first of a broad suite of active ETF solutions we plan to deliver over time.”
He added that Canada, being home to the first ETF, is an ideal market for these products, and that the listing of JEPI and JEPQ underscores JPMAM’s role as an active manager with a range of global products.
The two ETFs focus on equities, aiming to provide Canadian investors with capital appreciation and a steady income stream. JEPI focuses on stocks in the S&P 500, while JEPQ provides exposure to the Nasdaq-100 Index.
These ETFs are managed by JP Morgan's investment team, with a focus on offering investors the advantages of actively managed products.
George Gatch, CEO of JP Morgan Asset Management, stated, “We've been serving institutions in Canada for 41 years, and this launch marks a significant milestone, enabling us to offer to a wide range of Canadian investors the many advantages of ETFs.”
Hamilton Reiner, portfolio manager and head of US Equity Derivatives at JP Morgan Asset Management, commented on the success of JEPI and JEPQ strategies in other markets.
He said the strategies aim to provide income and risk management through a combination of equity investments and options strategies, designed to manage income generation and volatility while participating in the growth potential of equity markets.
JEPI and JEPQ aim to offer income generation and equity exposure while targeting a portion of the returns associated with the S&P 500 Index and Nasdaq-100 Index, respectively.
These ETFs employ an options strategy by selling out-of-the-money call options, generating income from the premiums received, in addition to dividends from the underlying stock portfolio. This approach may also offer downside protection by offsetting potential losses in stock positions.
