Exchange-traded-funds (ETFs) continue to see strong growth in 2018, with Deutsche Börse welcoming JP Morgan Asset Management as its latest ETF issuer. The new agreement has seen the asset manager launch two bond index ETFs and three active ETF funds across Xetra and Börse Frankfurt, all of which are now currently live.
The popularity of ETFs continues to soar, having shattered previous highs in 2017. The industry has been notching strong growth since 2016, with inflows for ETFs peaking at $464 billion in 2017, citing data from State Street Global Advisors. The instrument has become the de-facto choice for with both institutions and retail investors, which have seen large amounts of cash channeled into the segment.
With the benefit of tracking every sector, region, and asset class, ETFs hold a wide range of benefits for investors, including greater transparency and tax efficiency. These attributes helped pave the way for Deutsche Börse’s latest ETF expansion, which has brought JP Morgan into the fold, helping enable investments in key alternative beta strategies.
“We are pleased to be partnering with Deutsche Börse as we launch into the German market for the first time with our initial European ETF offering,” explained Christoph Bergweiler, Head of Germany, Austria, Central and Eastern Europe and Greece at JP Morgan Asset Management.
“We feel it’s important to bring this added level of choice to our clients at a time when the need to build stronger investment portfolios is as important as ever. German investors will now be able to invest in the established and recognised investment expertise of J.P. Morgan Asset Management within the ETF wrapper,” he added.
JP Morgan’s new ETFs will grant exposure for investors into specific euro-denominated government bonds in the Eurozone as well as USD-denominated bonds across other emerging markets (EM). In particular, the remaining three ETFs that went live today will also help give investors access to diversified investment strategies with equities, bonds and futures.
This includes the following:
“The J.P. Morgan Asset Management ETFs are an interesting addition to our product range, and serve to underscore the attractiveness of Deutsche Börse as a leading listing and trading platform in the European ETF market,” reiterated Martin Reck, Cash Market Managing Director at Deutsche Börse.