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J.P. Morgan Is Converting $4.6 Billion Worth of Mutual Funds Into ETFs

MarketDash Editorial Team
6 hours ago
J.P. Morgan Asset Management plans to convert four mutual funds worth $4.6 billion into ETFs by mid-2026, betting that investors prefer the tax-efficient, flexible structure over traditional fund wrappers.

J.P. Morgan Asset Management is getting ready for a major product makeover. The firm announced plans to transform four U.S. mutual funds into ETFs next year, marking one of the largest mutual-fund-to-ETF conversions scheduled for 2026. The move still needs Fund Board approval in February, but if it goes through, it'll shift roughly $4.6 billion in assets as of October 31 into the ETF wrapper.

The funds on the conversion list span municipal bonds, preferred securities, and equity strategies. According to J.P. Morgan, these are natural fits for the ETF structure given their investment approaches and investor base.

The Conversion Timeline

Here's what's on deck, assuming the board gives the green light:

JPMorgan New York Tax Free Bond Fund — $415 million AUM — converting June 12, 2026

JPMorgan California Tax Free Bond Fund — $427 million AUM — converting June 12, 2026

JPMorgan Preferred and Income Securities Fund — $1.73 billion AUM — converting July 10, 2026

JPMorgan U.S. GARP Equity Fund — $2.05 billion AUM — converting July 10, 2026

The firm says it's announcing the plan well in advance to give shareholders and distributors plenty of time to understand what's happening and prepare for the change. If the board approves the conversions, shareholder approval won't be required.

What Makes ETFs Attractive

J.P. Morgan highlighted several advantages that come with the ETF structure: more trading flexibility throughout the day, better portfolio transparency, and superior tax efficiency compared to mutual funds. Investors still get access to the firm's active management expertise, just wrapped in a more modern package.

Travis Spence, Global Head of ETFs at J.P. Morgan Asset Management, called the conversions a "natural next step" for the firm's evolution.

Betting Big on Active ETFs

This conversion plan fits into J.P. Morgan's broader push to grow its ETF business. As of September 30, the firm managed $231.5 billion in ETF assets, making it the second-largest active ETF manager globally. That's a clear signal the company believes ETF demand will keep outpacing traditional mutual fund growth.

The 2026 conversions reinforce that strategy, showing that even one of the world's biggest active managers sees the future in tax-efficient, flexible ETF structures rather than the legacy mutual fund format.

Back to News

J.P. Morgan Is Converting $4.6 Billion Worth of Mutual Funds Into ETFs

MarketDash Editorial Team
6 hours ago
J.P. Morgan Asset Management plans to convert four mutual funds worth $4.6 billion into ETFs by mid-2026, betting that investors prefer the tax-efficient, flexible structure over traditional fund wrappers.

J.P. Morgan Asset Management is getting ready for a major product makeover. The firm announced plans to transform four U.S. mutual funds into ETFs next year, marking one of the largest mutual-fund-to-ETF conversions scheduled for 2026. The move still needs Fund Board approval in February, but if it goes through, it'll shift roughly $4.6 billion in assets as of October 31 into the ETF wrapper.

The funds on the conversion list span municipal bonds, preferred securities, and equity strategies. According to J.P. Morgan, these are natural fits for the ETF structure given their investment approaches and investor base.

The Conversion Timeline

Here's what's on deck, assuming the board gives the green light:

JPMorgan New York Tax Free Bond Fund — $415 million AUM — converting June 12, 2026

JPMorgan California Tax Free Bond Fund — $427 million AUM — converting June 12, 2026

JPMorgan Preferred and Income Securities Fund — $1.73 billion AUM — converting July 10, 2026

JPMorgan U.S. GARP Equity Fund — $2.05 billion AUM — converting July 10, 2026

The firm says it's announcing the plan well in advance to give shareholders and distributors plenty of time to understand what's happening and prepare for the change. If the board approves the conversions, shareholder approval won't be required.

What Makes ETFs Attractive

J.P. Morgan highlighted several advantages that come with the ETF structure: more trading flexibility throughout the day, better portfolio transparency, and superior tax efficiency compared to mutual funds. Investors still get access to the firm's active management expertise, just wrapped in a more modern package.

Travis Spence, Global Head of ETFs at J.P. Morgan Asset Management, called the conversions a "natural next step" for the firm's evolution.

Betting Big on Active ETFs

This conversion plan fits into J.P. Morgan's broader push to grow its ETF business. As of September 30, the firm managed $231.5 billion in ETF assets, making it the second-largest active ETF manager globally. That's a clear signal the company believes ETF demand will keep outpacing traditional mutual fund growth.

The 2026 conversions reinforce that strategy, showing that even one of the world's biggest active managers sees the future in tax-efficient, flexible ETF structures rather than the legacy mutual fund format.