What is an ETF?
A type of security that tracks an index, sector, commodity or other asset and helps grow an investor’s portfolio.
Who are ETFs for?
Investors who are interested in diversification and flexibility in their portfolios.
Why invest in ETFs?
They hold various types of investments like stocks or mutual funds, and can provide additional tax and liquidity benefits.
Benefits of investing in ETFs with J.P. Morgan
We have a full suite of ETF solutions to help achieve your investment goals. With J.P. Morgan Wealth Management. you can make informed decisions and build strong portfolios based on our latest research, market trends and financial planning insights. Our team of seasoned investment professionals can help you build a customized strategy aligned with your financial aspirations.
Investing in ETFs with J.P. Morgan
- Diversify your investment portfolio quickly, easily and conveniently.
- Buy and sell funds on an exchange in real time and get liquidity when you need it.
- Meet your goals with passively-managed ETFs, which can provide tax-efficient options and diversification at low fees.
- Take advantage of the flexible, broad trading options provided by the liquidity of an ETF, which is based on the securities it holds and its trading value.
JPMorgan Chase and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting professionals before engaging in any transaction.
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Frequently Asked Questions
An exchange-traded fund (ETF) is a basket of investments that grows an investor's portfolio quickly, with low risk.
ETFs track the performance of an underlying market index, such as the S&P 500. Investors don't own individual stocks. Instead, ETFs provide them with the opportunity to buy and sell shares of the ETF on an exchange and to benefit from potential market performance.
You can open a brokerage account and select J.P. Morgan's Self-Directed Investing tool or our robo-advisor option. If you prefer a more personalized experience, you can work directly with a J.P. Morgan Advisor to go over your investment options. Get started here.
ETFs have fees but they tend to cost less than those associated with mutual funds. The two most common costs associated with ETFs are the expense ratio, the fee that goes to the fund and the brokerage fee, a flat cost per trade that goes to the financial institution. However J.P. Morgan offers unlimited commission-free trades, so you'll never have to pay a brokerage fee.
ETFs tend to be more tax-efficient than mutual funds. For example, if you compare an ETF and a mutual fund in the technology sector, the ETF is generally more tax-efficient. Meet with a J.P. Morgan Advisor who will answer your questions about your investment strategy and speak to you tax professional about your tax situation.
Sharpen your knowledge
What's inside an ETF?
You may wonder how exchange-traded funds (ETFs) differ from one another. Here's what you see if you cut open an ETF.
2 minute read
What is an inverse ETF?
Inverse ETFs allow investors to profit from market declines but are fraught with risk, as rebalancing and compounding can skew performance. Learn more about them.
2 minute read
Break it down: Exchange Traded Funds (ETFs)
What's an ETF? We explain how these funds work.
1 minute read