JP Morgan's Muni ETF JMUB Emerges As Largest Active Fund Post $5.8 Billion Merger

In a deal completed on Oct. 27, the asset manager merged its JPMorgan National Municipal Income Fund into the JPMorgan Municipal ETF . The merger immediately made JMUB the biggest active municipal bond ETF in the United States with $5.8 billion in assets under management, according to the company.

The move is yet another milestone in the continuing march of major fund houses into the ETF wrapper, especially in fixed income, historically slower to adapt than equities. Having pioneered the move to the structure for its cost efficiency and liquidity, equity strategies are now being followed by bond managers, who are converting long-standing mutual funds into ETFs, driven by growing investor demand for transparency and flexibility.

JMUB has an expense ratio of 18 basis points and actively manages the fund in search of investment-grade municipal bonds that provide tax-free income. The strategy entails managing credit risk and duration to protect capital while pursuing consistent income. The three-year return of 5.3% has been facilitated by this well-balanced approach.

The merger also made JMUB the fourth-biggest active fixed income ETF in the United States, according to J.P. Morgan Asset Management. The firm said the deal took its total ETF assets to over $250 billion, cementing its growing status in the ETF space.

Also Read: VistaShares’ POW ETF Bets On The Real AI Bottleneck ? Power, Not Processors

A Strategic Shift For Investors

J.P. Morgan’s Global Head of ETFs, Travis Spence, said the merger was a meaningful next step for both the firm’s municipal bond investors and its ETF business. He added that by combining the strengths of both funds, clients can now access municipal markets more efficiently, transparently, and cost-effectively.

The move reflects a broader trend for asset managers as active ETFs rise in popularity, even within fixed income. Given yields are currently flat and clients are focusing on after-tax returns, JMUB’s new scale and configuration may prove to be an attractive option for investors seeking to rebalance their fixed-income portfolios while maintaining agility in a changing rate landscape.

Read Next:

• Global X Fires Up New US Natural Gas ETF As LNG Exports Surge

Photo: Shutterstock