How to Navigate the Current Market Environment With Active Fixed Income ETFs

While we traverse the hurdles in the current market environment, investors are still in need of reliable, yield-generating investments that can adapt to the ongoing risks.

In the upcoming webcast, How to Navigate the Current Market Environment with Active Fixed Income ETFs, Meera Pandit, global market strategist at J.P. Morgan Asset Management; and John Ecklund, managing director and head of the fixed income portfolio strategists at J.P. Morgan Asset Management, will discuss the current outlook for inflation and Fed monetary policy and outline core fixed income investments that seek to provide portfolio diversification and may help investors generate real income and positive alpha for portfolios.

For example, investors can turn to something like the JPMorgan Core Plus Bond ETF (JCPB), which tries to generate a high level of income by investing in high-, medium-, and low-grade debt securities.

The ETF will include exposure to corporate bonds, U.S. treasury obligations, other U.S. government and agency securities, and asset-backed, mortgage-related, and mortgage-backed securities. JPCB may invest in debt securities rated below investment grade (i.e., high-yield or junk bonds) or the unrated equivalent, including those from foreign and emerging markets.

Under normal conditions, the ETF will hold 65% of its portfolio in investment-grade securities, and will not hold more than 35% of assets in below-investment-grade or speculative-grade securities. Furthermore, up to 35% of the fund’s portfolio may be invested in foreign securities, including securities denominated in foreign currencies.

Additionally, the JPMorgan Income ETF (JPIE) is one of the active fixed income ETFs that targets debt securities across the fixed income space, seeking to deliver yield with lower volatility and attractive distributions.

JPIE draws upon the combined expertise of the firm’s Global Fixed Income Currency and Commodities (GFICC) platform, providing the best ideas from diverse asset class expertise and broad investment capabilities. Consequently, the strategy invests opportunistically in a wide variety of debt securities that have a high potential to produce attractive risk-adjusted income and have low correlations to each other. The fund utilizes a flexible approach, allowing allocation shifts based on changing market conditions. In addition, investors can find attractive dividend payouts every month.

Financial advisors who are interested in learning more about active fixed-income strategies can register for the Thursday, November 17 webcast here.