JP Morgan Asset Management has acquired a minority stake in exchange-traded fund (ETF) provider Global X, becoming the latest asset manager to boost its position in the booming market.
JP Morgan has made a passive minority investment, which means Global X will operate separately to JP Morgan’s own small ETF business.
Global X, a small New-York based firm, boasts a portfolio of 47 ETFs with over $3 billion in assets under management.
“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, J.P. Morgan Asset Management.
“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.”
More asset managers are attempting to jump onto the ETF bandwagon, as institutional investors continue to divert money from active mangers into passive, index-tracking fund providers such as BlackRock and Vanguard.
Earlier this year, JP Morgan’s investment bank chief Daniel Pinto said the bank plans to increase investment into its ETF and alternative investment platform.