Per JPST prospectus, the fund seeks to maintain a duration of 1 year or less, thereby limiting prolonged exposure to the fluxes of the capital markets and reducing volatility. This is effective for investors who want to avert the risk associated with holding on to debt securities with long durations.

Actively Managed

As opposed to a “set it and forget it” passive management strategy, JPST employs the best talent making sure that the ETF is utilizing the best strategies in the fixed-income space to achieve the best returns.

“We wan to employ the conservative style of JP Morgan’s global liquidity while being competitive in yield and performance,” said James McNerny, portfolio manager at JP Morgan Asset Management.

JPST has managed to generate returns of 0.98% year-to-date and 1.85% the past year per Yahoo! Finance performance figures.

Related: Best Fixed-Income ETFs to Have During a Recession – Part 2

For more trends in fixed income, visit the Fixed Income Channel.