ETF Q&A: J.P. Morgan Research

Paul DeSalvo, Head of Securities Services ETF Sales at J.P. Morgan

Danielle Rutsky, ETF Lead Product Manager

What are some of the key takeaways from the JPM 2024 Global ETF Handbook?

For the fourth consecutive year, many new ETF launches have been actively managed.  ETFs have quickly become a core part of most active asset managers’ product strategies, and their flagship strategies are increasingly being launched as replicas or cousins, or are being migrated into an ETF wrapper. 

The pace of new ETF launches remains robust as ETF providers continue to address new investment themes, offer more granular exposure, cover more of the investible universe, and increasingly migrate actively managed strategies to the ETF wrapper.  ETFs focusing on managed risk/defined outcome, factor, call/put writing, and thematic funds accounted for nearly half of all new ETF launches. Cryptocurrency ETFs were the well reported new entrants accounting for ~5% of new fund launches and attracted over 40% of the AUM in newly launched funds over the past year.

Were the trends for ETFs consistent globally or were there regions with large outliers?

From an AUM growth rate perspective, all regions experienced similar expansion over the last year, however the US market continues to be the largest market.  Globally, ETFs hold approximately $13.0 trillion in assets, with 72% of the AUM based in the US. Europe and Asia account for 16% and 12% of the global ETF AUM, respectively.

Many of the actively managed ETF growth trends observed in the US are also emerging internationally, albeit at a slower pace. Europe, which hasn’t experienced high growth in the ETF market is starting to see an increased flurry of interest and launch activity. In Asia, the growth of the ETF market is largely driven by broad country exposure ETFs, fixed income ETFs and style/sector ETFs.

How should firms be utilizing the Handbook?

J.P. Morgan Research has published its ETF Handbook annually for the past 20 years.  It offers a comprehensive, categorized listing of all ETFs trading globally, enabling easy analysis by region, asset class, and market segment.  As the marquis ETF marketplace Research publication, it has consistently served as a valuable tool for end investors, industry allocators and issuers to obtain expert insights and understand new and emerging market developments and trends.  Suitable for all market participants, regardless of expertise or knowledge level, it provides a one stop resource for education and analysis of the ETF marketplace. 

What's next for JPM over the next 12 months?

As a multi-functional operator (e.g. ETF sponsor and investment manager, authorized participant, researcher, distributor, and asset servicer) in the ETF marketplace, J.P. Morgan remains dedicated to enhancing and innovating the ETF industry.  Regardless of the role our businesses play, we are committed to supporting our client partners and delivering innovative solutions that improve investment outcomes, enhance operating model scalability, and boost overall market efficiency.   

This piece was published for use in the Nasdaq ETF Intel Newsletter. Subscribe here for more ETF content.