An Ultra-Short Duration Bond ETF to Better Manage Risks Ahead | ETF Trends

As many take the pulse of the current market conditions, ETF investors may want to consider an ultra-short duration bond strategy to help protect their portfolios.

On the recent webcast, Risk Management: Ultra-Short Duration Bond Strategies, Samantha Azzarello, Vice President, Global Market Strategist at J.P. Morgan Asset Management, painted the picture of the current market landscape, outing positive economic figures such as the quarter-over-quarter growth of 3.4% for 3Q2018, rising business fixed investment, an unemployment rate at below half-century averages, rising wage growth, steady inflation and growing market complacency as reflected by a low CBOE Volatility Index reading.

However, the prolonged economic growth can not last forever, and as we have recently witnessed, market volatility can greatly affect an investment portfolio, especially after a prolonged bull run. Azzarello pointed out that on average, an equity market may experience a 14% drawdown 12-months after reaching its peak.

Alternatively, Alexander Nobile, Vice President, Investment Specialist for J.P. Morgan Asset Management, argued that investors can look to strategies like the JPMorgan Ultra-Short Income ETF (JPST) to better manage risks, noting that “short-term fixed income is a primary focus for J.P. Morgan Asset Management.”

The JPMorgan Ultra-Short Income ETF is an actively managed fund backed by the expertise of J.P. Morgan’s Global Liquidity business, with 30 years of demonstrated results across market cycles.