Fund Files: JPM and DFA bolster ETF assets with mutual fund reversals

JP Morgan Asset Management and Dimensional Fund Advisors (DFA) have bolstered their ETF assets, converting existing mutual funds into exchange-traded vehicles.

According to a filing with the Securities and Exchange Commission, the $938 million JPMorgan Market Expansion Enhanced Index fund has officially moved to the JPMorgan Market Expansion Enhanced Equity ETF (JMEE).

The move was one of four such conversions, plans for which were first disclosed in August last year. The other three funds to become ETFs were the $1.1 billion JPMorgan Inflation Managed Bond fund, which became an ETF in April, and the $1.2 billion JPMorgan Realty Income fund and the JPMorgan International Research fund. Enhanced Equity of $5.4 billion, which must be converted into ETFs. late May and early June, respectively.

In addition, DFA has listed the DFA US Market-Scale Value ETF (DFUV). This is the seventh previously announced conversion of the company’s line of tax-managed mutual funds since June 2021.

DFA previously made one of the first and largest conversions, turning four mutual funds with about $29 billion combined into ETFs last June. The company converted two more later in 2021 and launched three US equity ETFs in February.

With this most recent launch, DFA offers 24 ETFs with approximately $50 billion in assets under management.

Dimensional’s push into ETFs followed the launch of Avantis by American Century in 2019, a small company run and staffed by many former DFA managers and employees.

Franklin Templeton and Harbor Capital are among the other companies that perform mutual fund-to-ETF conversions. Guinness Atkinson was the first to do so, turning two strategies into new vehicles last year.

Dolores W. Simon