JP Morgan Asset Management’s (JPMAM) US research enhanced equity ETF has become the first active ETF to hit $10bn assets under management (AUM) in Europe.
The JPM US Research Enhanced Index Equity (ESG) UCITS ETF (JREU) pulled in $3.6bn in 2024, with assets swelling $1.8bn over the last three months, according to data from TrackInsight.
JREU achieves alpha by slightly overweighting companies with the highest potential to outperform and underweights companies considered the most overvalued.
Travis Spence (pictured), global head of ETFs at JPMAM, said: “Our Research Enhanced Index strategy has successfully been delivering value to investors for over 35 years. Combining it into the ETF vehicle has made the strategy more accessible for many types of investors.
“We look forward to continuing our journey of delivering value to our investors through active ETFs.”
JREU’s outperformance lies in contrast to data from the S&P Dow Jones Indices’ SPIVA Europe scorecard, which found that 71% of active US equity funds did not meet the S&P 500s returns in one year.
Active ETFs are the catalyst for the growth of the European ETF market, gathering $6.8bn inflows in the first half of 2024.
Since its inception in 2018, JPMAM has cornered 42.5% of the active ETF market.
JPMAM has $31.9bn AUM in European ETFs, a small fraction of its $165.84bn American ETF business.
