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          <p>Active ETFs: A manual for investors</p>

          Overview

          Demand for active exchange-traded funds (ETFs) has grown significantly in recent years. Global assets under management reached US$ 689 billion at the end of 2023, which is a sharp increase from only US$ 111 billion at the end of 20181. This growth is likely to continue, with 72% of investors globally planning to increase their active ETF allocation in the next 2-3 years, according to the Global ETF Investor Survey 2024 by Trackinsight1. Despite the growth, we understand that some misconceptions about active ETFs still persists. For this reason, we have created this manual to serve as an educational resource.

          Introduction to active ETFs

          What is an active ETF?

          When looking at active ETFs, it is first important to note that terms such as “ETF”, “passive” and “index” are not synonymous. ETF simply means exchange-traded fund, which means an ETF is traded on an exchange regardless of the investment strategy used.

          A variety of “engines” or strategies can therefore be placed in the ETF structure to leverage its features.

          “Active” refers to specific investment decisions, which are designed to achieve specific outcomes, such as outperforming an index (alpha), generating income, or achieving control in terms of duration, yield or credit quality.

          An active ETF provides access to these specific outcomes, all while maintaining the attributes of the ETF structure.


          The ETF is a wrapper and the content itself is independent of the vehicle

          01-Landing Page infographic - The ETF is just a wrapper and the content itself is independent of the vehicle
          Source: J.P. Morgan Asset Management. For illustration purposes only. A passive ETF aims to replicate the performance of an index however its market price can be different from its net asset value and from the net asset value of the index.

          Active ETF overview

          • Demand for active ETFs
          • Types of active ETFs
          • Investing in active ETFs

          Demand for active ETFs

          We look at the ways active ETF adoption has soared.

          Demand for active ETFs is growing

          Types of active ETFs

          The first active ETF was launched in 2008. Since then, a lot of innovation has happened in the active ETF market. Active ETFs now cover various asset classes, geographies and strategies.  Over the five years leading up to 20231, active ETF assets under management growth has outpaced that of their passive peers.

          Active ETF asset growth

          Active-ETF-asset-growth
          Source: Bloomberg as of 31.12.2023. Data includes global exchange-traded funds (ETFs) and exchange-traded products (ETPs). Provided to illustrate asset class trends, features and characteristics, not to be construed as offer, research or investment advice.

          Investing in active ETFs

          Actively managed ETFs in focus

          04-Landing Page infographic - Actively managed ETFs in focus
          Provided to illustrate the characteristics of active ETFs, not to be construed as offer, research or investment advice. The value of investments may go down as well as up in response to the performance of individual companies and general market conditions. Active risk management process includes an effort to monitor and manage risk, but does not imply low risk.

          Getting started

          Useful information to consider when investing in active ETFs

          ETFs Explained Series

          Enhancing ETF understanding by tackling fundamental to advanced questions about active and passive ETFs.

          ETFs Myth Busting Series

          Identifying and debunking common misconceptions about active ETFs to enhance investor understanding.

          ETF Video Series

          Understand and learn more about ETFs through one-minute short videos.

          ETFsExplained_1742x1298
          MythBuster_1742x1298
          ETFvideos_1742x1298

          J.P. Morgan Asset Management: Advancing the potential of ETFs

          J.P. Morgan ETFs are rigorously designed to push the boundaries of ETF investing so that investors can build diversified, competitively priced portfolios.

          J.P. Morgan Asset Management launched its first ETF in 20144 and maiden active ETF in 20165. Since then, we have brought different innovations to the ETF market – from our successful Research Enhanced Index Equity strategies and the launch of the industry’s first active China equity ETF.

          J.P. Morgan Asset Management is now one of the largest active ETF providers globally and one of the largest in the UCITS space. We have also been named the “ Best ETF Manager (2024)” by AsianInvestor6. 

          Past performance is not a reliable indicator of current and future results.

          Explore ETFs by investment goals

          Explore our capabilities

          Whether you are looking to pursue growth, seek income or mitigate risk, our expanding suite of innovative ETF strategies can help achieve your investment objectives.

          The full spectrum of our ETF strategies

          activeETFbox
          SmartBetaETFbox
          PassiveETFbox

          Provided to illustrate the characteristics of respective ETF strategies, Not to be construed as offer, research or investment advice. The strategies seek to achieve the stated objectives. There can be no guarantee the objectives will be met.

          1. Source: Trackinsight. “Global ETF Survey 2024”. Published February 2024.
          2. Source: ETFGI as of 26.08.2024.
          3. Source: Trackinsight data as of 31.07.2024.
          4. Source: J.P. Morgan Asset Management as of 17.06.2014.
          5. Source: Rise of Active ETF Market: Active ETFs take centre stage  referring to JPMAM’s active ETF evolution. J.P. Morgan Asset Management. (24.07.2024).
          6. Source: J.P. Morgan Asset Management is named as Best ETF Manager (2024), Award issued by AsianInvestor. AsianInvestor Asset Management Awards are issued by AsianInvestor in the year specified, reflecting performance as at the previous calendar year end.
          7. Source: J.P. Morgan Asset Management as of 31.07.2024.

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