New Listing

JP Morgan AM launches GBP-hedged version of US Treasury ETF

Tom Eckett

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JP Morgan Asset Management (JPMAM) has launched a sterling-hedged version of the JPM BetaBuilders US Treasury Bond UCITS ETF (BBTR), in response to client demand.

The JPM BetaBuilders US Treasury Bond UCITS ETF – GBP Hedged (BBTP) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.10%.

BBTP will offer investors exposure to Treasury bonds across the full yield curve and will be hedged back to sterling.

BBTR was launched earlier this month with the JPM BetaBuilders EUR Govt Bond UCITS ETF (BBEG) with TERs of 0.10%.

Bryon Lake, head of international ETFs at JPMAM, said a feature of the firm’s ETF range will be to have equal charges for hedged and non-hedged products.

John Adu (pictured), co-head of ETF distribution at JPMAM, commented: “We are continuing to listen to and respond to clients’ needs for a range of cost-efficient solutions that are geared towards this late cycle environment.

“This includes currency-hedged ETFs which can help asset allocators create more balanced portfolios, as they seek to navigate an evolving macro backdrop.”

Mike Bell, global market strategist at JPMAM, said: “While the timing of the next downturn remains uncertain, many investors are starting to add in some portfolio hedges to help balance the riskier assets in their portfolio, as we move later into the economic cycle.

“By including some Treasuries, investors are seeking to create a more balanced portfolio and help reduce overall portfolio losses when the next economic downturn eventually arrives.

“For UK investors thinking about incorporating US government bond exposure, they may want to consider hedging the currency risk, given the uncertainty around the outlook for sterling against the dollar.”

In April, ETF Stream revealed JPMAM had matched the cheapest product listed in Europe, launching the JPM BetaBuilders US Equity UCITS ETF (BBUS) at just 0.04%.

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