J.P. Morgan Asset Management Hits Market with Largest Active ETF Launch in History Anchored by $2 Billion Institutional Client Investment

Rhea-AI Summary

J.P. Morgan (NYSE:JPM) has launched the JPMorgan Active High Yield ETF (JPHY), marking the largest active ETF launch in history with a $2 billion anchor investment from an institutional client. The ETF, trading on Cboe BZX Exchange, will invest at least 80% of assets in below investment-grade debt securities, targeting high current income.

JPHY is priced at 45 basis points and benchmarked against the ICE BofA US High Yield Constrained Index. The fund is managed by a veteran team including Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons. JPM currently leads as the largest U.S. active fixed income ETF provider with $55 billion in AUM and has attracted $10 billion in flows YTD in 2025.

Positive

• None.

Negative

• High-yield debt securities carry inherent higher risk due to below investment-grade ratings
• Performance dependent on active management success in a traditionally passive-dominated space

Insights

ETF Market Strategist

JPM's record $2B active high-yield ETF launch strengthens its fixed income ETF leadership and signals major active management momentum.

The launch of JPMorgan Active High Yield ETF (JPHY) represents a watershed moment in the ETF industry. With an unprecedented $2 billion anchor investment from an institutional client, this is the largest active ETF launch in history. The scale alone provides immediate advantages: enhanced liquidity, tighter bid-ask spreads, and improved execution costs that typically take months or years to develop in new ETF products.

JPM's strategic timing is impeccable. High-yield bonds are particularly well-suited for active management due to their asymmetrical risk profiles, where downside risks (defaults) often outweigh upside potential. This launch leverages JPM's existing dominance as the largest U.S. active fixed income ETF manager with $55 billion in assets and $10 billion in 2025 YTD inflows.

The 45% expense ratio positions JPHY competitively in the active high-yield space while providing JPM with substantial fee revenue – approximately $9 million annually from this single product at launch. The mandate requiring 80% allocation to below-investment-grade securities ensures the fund maintains its high-yield focus while allowing flexibility to navigate challenging credit markets.

This product reinforces an accelerating shift toward active management in fixed income, where security selection and risk management can add significant value compared to passive index replication. JPM's projection of quadrupling active fixed income ETF assets in five years isn't mere marketing – it's a calculated market forecast from the category leader signaling transformative growth ahead.

JPMorgan Active High Yield ETF (JPHY) provides access to a leading active high yield strategy

NEW YORK, June 25, 2025 /PRNewswire/ -- J.P. Morgan Asset Management today announced the launch of the JPMorgan Active High Yield ETF (JPHY), on the Cboe BZX Exchange. The fund is anchored by a $2 billion investment from a large institutional external client.   

"We're excited to launch JPHY at this scale, marking the largest active ETF launch¹ and extending our position as the leading provider of active fixed income," said George Gatch, CEO of J.P. Morgan Asset Management. "This is just the beginning of a trend that should see active fixed ETF AUM quadruple in the next five years². As the largest U.S. active fixed income ETF manager³, we will continue to expand our ETF lineup to fully reflect the depth of our fixed income platform." 

By strategically investing in high-yield debt securities, JPHY has a commitment to allocate at least 80 percent of its assets to bonds and other debt securities rated below investment grade and aims to deliver a high level of current income. JPHY is benchmarked against the ICE BofA US High Yield Constrained Index and is priced competitively at 45 basis points.

An expert approach to security selection is crucial in the high-yield market, where the asymmetrical return profiles of securities demands exceptional judgment and risk management. J.P. Morgan's team of seasoned portfolio managers brings decades of expertise, stability and proven track records, including Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons. 

"JPHY reinforces our commitment to deliver incremental return opportunities in fixed income, a market segment that has been dominated by passive strategies," said Robert Michele, Global Head of Fixed Income for J.P. Morgan Asset Management. "The large anchor investment in JPHY signifies high conviction in our strategy and seasoned portfolio management team and we look forward to putting our active management skills to work."

Future investors in JPHY can benefit from the scale provided by a fund launching with assets of $2 billion. The portfolio management team seeks to be fully invested at, or shortly after, launch and the ETF is expected to be at a size where investors will have greater ability to limit the size of their investment relative to the size of the fund. The initial scale could help attract new investors more quickly, which could result in improved liquidity and lower trading costs.

J.P. Morgan Asset Management is the largest U.S. active fixed income ETF provider, with $55 billion in AUM.  The firm is also leading the industry in U.S. active fixed income flows in 2025, attracting approximately $10 billion in flows YTD. ³

About J.P. Morgan Asset Management
J.P. Morgan Asset Management, with assets under management of $3.7 trillion (as of 3/31/2025), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. For more information, visit: www.jpmorgan.com/am.

JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorganChase had $4.4 trillion in assets and $351 billion in stockholders' equity as of March 31, 2025. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world's most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA. More information is available at https://am.jpmorgan.com/us/en/asset-management/gim/adv/products/etfs.

There is no guarantee, obligation or assurance that any investors will maintain any specific level of investment in the Fund, and such investors have the ability to withdraw their investment at any point in time like any other shareholder of a mutual fund or ETF.

Investors should carefully consider the investment objectives and risks as well as charges and expenses of an ETF before investing. The summary and full prospectuses contain this and other information about the ETF and should be read carefully before investing. To obtain a prospectus: Call 1-844-4JPM-ETF.

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
SOURCE J.P. Morgan Asset Management
Related Links: http://www.jpmorganchase.com

¹ Source: J.P Morgan Asset Management, Bloomberg and Morningstar. U.S. Active ETF launches. Does not include mutual fund conversions (as of 5/31/2025)
²  According to J.P. Morgan Asset Management paper:  The Power of Fixed Income ETFs
³Source: Bloomberg, Factset and J.P. Morgan Asset Management (as of 6/12/2025, excludes ETNs)

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SOURCE J.P. Morgan Asset Management

FAQ

What is the size and significance of JPM's new JPHY ETF launch?

JPHY launched with a $2 billion anchor investment from an institutional client, making it the largest active ETF launch in history.

What is the investment strategy of JPMorgan's JPHY ETF?

JPHY invests at least 80% of assets in below investment-grade debt securities, aiming to deliver high current income. It's benchmarked against the ICE BofA US High Yield Constrained Index.

What is the expense ratio for JPM's new high yield ETF?

JPHY is priced at 45 basis points (0.45%).

How large is JPM's active fixed income ETF business in 2025?

JPM is the largest U.S. active fixed income ETF provider with $55 billion in AUM and has attracted $10 billion in flows YTD in 2025.

Who manages the JPMorgan Active High Yield ETF (JPHY)?

JPHY is managed by a veteran team including Robert Cook, Thomas Hauser, Jeffrey Lovell, John Lux, and Edward Gibbons.