J.P. Morgan Asset Management has rolled out a speculative-grade bond exchange traded fund, its first fixed-income related strategy and its second actively managed offering.
J.P. Morgan launched the JPMorgan Disciplined High Yield (BATS: JPHY) on Thursday. JPHY has a 0.40% expense ratio.
The new active high-yield bond ETF tries to generate higher risk-adjusted returns and lower credit risk relative to existing passive options.
Interest rates are hovering near historical low levels, but investors can still generate some extra cash through high-yield investments with lower rate sensitivity and diminished correlations to the potential risk in U.S. Treasuries.
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While some may be skeptical of the potential credit risks in the corporate debt market, JPHY provides high yield exposure that excludes securities exhibiting what what may be considered unattractive risk-reward profiles.[related_stories]