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.
The investment managers will combine a bottom-up security selection with top-down analysis to improve potential for attractive risk-adjusted returns and increased income.
“JPMorgan is bringing choice to the fixed income market, delivering many of our best active ideas to areas where investors have previously had limited options,” Jillian DelSignore, U.S. head of ETF distribution at J.P. Morgan Asset Management, said in a note. “Relative to passively-managed ETFs, JCPB offers a more flexible approach to a core fixed income allocation with the potential to achieve increased yield and enhanced risk-adjusted returns.”
For more information on new fund products, visit our new ETFs category.