J.P. Morgan Asset Management (JPMAM) has issued its latest guide on Exchange-Traded Funds (ETFs), positioning active management as the key driver of innovation in the burgeoning $13 trillion global market. The report emphasizes how a universe of 12,000 active ETFs worldwide is increasingly offering investors sophisticated tools for portfolio construction, moving beyond the traditional reliance on passive, index-tracking funds.

A major focus of the guide is the utility of active ETFs in generating consistent income while managing volatility. Products that use strategies such as selling options (e.g., covered calls) are highlighted as essential tools for investors seeking monthly cash flow. Furthermore, the report explores significant opportunities in Fixed Income ETFs, arguing that rate uncertainty and evolving market conditions create an environment where actively managed bond strategies can outperform passive counterparts.

While the US accounts for over 70% of the global value of active ETFs, the guide also provides regional context, particularly for the Asia-Pacific (APAC) market, and covers broader best practices in trading and portfolio allocation. As the ETF landscape matures, diversification through active strategies, enhanced access to alternative investments, and a focus on both dividend income and lower volatility will define the next phase of growth, cementing the ETF as a versatile centerpiece of modern investment portfolios.

Source: https://www.jpmorgan.com/insights/global-research/investing/etf-guide