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February 16, 2018 at 09:58 AM
JPMorgan Chase & Co. is shopping around for an ETF business that would boost its presence in the $3.5 trillion U.S. exchange-traded products market, according to people familiar with the matter.
The bank’s asset-management unit has had talks with the U.S. business of ETF Securities, said two of the people, who asked not to be identified because the information is private.
JPMorgan also spoke with Global X, which it held a minority stake in at one point, though that firm entered into a definitive agreement this week to be purchased by South Korea’s Mirae Asset Management, the people said.
ETF Securities’ U.S. unit, with about $2.8 billion in assets, specializes in precious metals and commodity exchange-traded products. The company has been in conversations with as many as 10 potential buyers, including U.K.-based Aberdeen Asset Management, and is expected to be acquired some time in the first quarter, one person said.
Shares of WisdomTree Investments Inc., an issuer of ETFs, were up 7.5 percent to $10.51 at 2:29 p.m. in New York, extending gains after Bloomberg reported JPMorgan’s interest in takeovers. Invesco Ltd. rose 1.7 percent to $33.76, reversing earlier declines.
Chloe Etsekson, a spokeswoman for New York-based JPMorgan, said the firm doesn’t comment on market rumors. Representatives for Global X, ETF Securities and Aberdeen also declined to comment.
