Big Banks and Broker-Dealers Continue to Carve Out Stakes in ETF Ecosystem

(Reuters) JPMorgan Chase & Co’s (JPM.N) asset management arm said it has taken a passive, minority stake in New York-based exchange-traded fund (ETF) provider Global X Management Co LLC.

Traditional asset managers have been eager to build ETFs, which are typically lower cost and have been gaining assets at a faster clip than other investment products. ETFs account for $3 trillion globally.

Legg Mason Inc (LM.N) said it January it had taken a stake in ETF company Precidian Investments.

JPMorgan Asset Management, which manages $1.7 trillion, launched its first seven U.S. ETFs over the last two years, raising $339 million, according to Lipper. JPMorgan Chase also backs the $3.2 billion JPMorgan Alerian MLP ETN (AMJ.P).

Global X, founded in 2008, offers over 40 ETFs and is currently developing an ETF that will attempt to profit on consumption habits of people in their twenties.

The company also offers funds based on JPMorgan indexes, including the Global X JPMorgan Efficiente ETF (EFFE.P).

(This story has been refiled to correct to show backer of Alerian MLP ETN refers to JPMorgan Chase, not JPMorgan Asset Management in paragraph four)