JP Morgan has launched a suite of US income ETFs on the ASX that seek to deliver monthly distributable income with low volatility equity market exposure.
The three funds - the JPMorgan US 100Q Equity Premium Income Active ETF (ASX: JPEQ), the JPMorgan US 100Q Equity Premium Income Active ETF (Hedged) (ASX: JPHQ), and the JPMorgan Equity Premium Income Active ETF (Hedged) (ASX: JHPI) - all have management expense ratios of 0.4 per cent.
The funds have been launched in response to the rising interest rate environment which is prompting investors to rethink their approach to generating income.
"With JHPI, we seek to pay out all the income the portfolio makes on a monthly basis, net of fees. Income is derived from both dividend and options premium - an innovative approach that aims to produce a consistent monthly income stream, although this is not guaranteed," the fund manager said.
The fund is managed by portfolio managers Hamilton Reiner and Eric Moreau.