J.P. Morgan Asset Management announced that it will convert four of its U.S. mutual funds into exchange‑traded funds (ETFs) in 2026. The conversion involves the New York Tax‑Free Bond Fund ($415 million), California Tax‑Free Bond Fund ($427 million), Preferred and Income Securities Fund ($1.727 billion), and U.S. GARP Equity Fund ($2.049 billion), totaling roughly $4.6 billion in assets.
The bond funds are slated to launch on June 12 2026, while the equity and income funds are scheduled for July 10 2026. The conversions are contingent on board approval in February, after which shareholder approval is not expected to be required, streamlining the transition.
J.P. Morgan’s move follows a broader industry shift toward ETFs and builds on the firm’s already‑established active‑ETF leadership. As of September 30 2025, the firm managed $231.5 billion in ETF assets and ranked second globally in active‑ETF AUM. Converting these funds expands that offering, allowing the firm to capture a larger share of the growing ETF market and deliver the same active‑management expertise in a more flexible, transparent, and tax‑efficient vehicle.
Management explained that the conversion is driven by rising investor demand for ETF structures and the firm’s goal of providing the same investment strategies in the most efficient format. “As investor preferences continue to evolve, we are committed to meeting their needs by offering our strategies in the most efficient and accessible vehicles,” said Travis Spence, Global Head of ETFs. “Converting these mutual funds to ETFs is a natural next step, providing clients with greater flexibility, transparency, and tax efficiency while maintaining access to our active‑management expertise.”
The conversion also reflects J.P. Morgan’s history of successfully transitioning funds. In August 2021 the firm announced a similar conversion for four funds in 2022, and in December 2024 it announced three funds to convert in mid‑2025. These precedents demonstrate the firm’s experience and confidence in executing such transitions, positioning it to continue expanding its ETF footprint in the coming years.
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