JPMorgan Asset Management, the asset management and funds arm of JPMorgan Chase & Co. (NYSE:JPM), expanded its presence in the fast-growing exchange-traded funds industry Thursday by announcing a passive minority stake in Global X.
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New York-based Global X had nearly $3.1 billion in ETF assets under management as of April 13. The firm is known for its unique lineup of emerging and frontier markets ETFs as well one-of-a-kind industry and income-generating ETFs.
Global X is also a significant player in the equity-based commodities ETF space thanks to funds such as the Global X Lithium ETF (Global X Funds (NYSE:LIT)) and the Global X Silver Miners (NYSE:SIL). The issuer was the first to bring single-country ETFs to market for Argentina, Greece, Norway and Pakistan, among others. Global X's lineup of international ETFs also includes six China-focused sector funds.
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JPMorgan's Investment In Global X
JPMorgan Asset Management's investment in Global X will have no impact on how J.P. Morgan ETF Solutions and Global X operate their respective businesses. Specifically, there will be no co-marketing, investment management, distribution agreements or shared governance between the two organizations. This investment does not result in Global X becoming an affiliate of J.P. Morgan, according to a statement.
Earlier this month, JPMorgan Asset Management expanded its own ETF lineup with the launches of the JPMorgan Diversified Return Europe Currency Hedged Equity ETF (NYSE: JPEH) and the JPMorgan Diversified Return International Currency Hedged Equity ETF (NYSE: JPIH). The issuer now sponsors seven ETFs.
Investing in Global X augments our ETF strategy by expanding and deepening our participation in this fast-growing industry, said Jed Laskowitz, co-head of Global Investment Management Solutions for JPMorgan Asset Management, in the statement. We will continue to develop the J.P. Morgan ETF lineup with an eye toward future innovation in active ETFs while building this strategic partnership.
JPMorgan's ETFs have about $350 million in combined assets under management. Terms of the company's stake in Global X were not disclosed.
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