J.P. Morgan Asset Management has expanded its suite of active ETFs with the JPMorgan Active Bond ETF (NYSE Arca: JBND). The ETF aims to deliver total return from an actively managed portfolio of U.S. investment-grade bonds. JBND invests primarily in a diversified portfolio of intermediate- and long-term debt securities with a focus on securitized debt. JBND uses the same team and philosophy as the JPMorgan Core Bond Fund.
The fund aims to outperform the Bloomberg US Aggregate Bond Index over a three- to five-year market cycle. JBND focuses on a value-driven approach that emphasizes intermediate bonds of the highest quality.
See more: “JPMorgan Says HELO to Advisors Seeking Downside Protection”
Providing Value Through High-Quality Bonds
The lead portfolio managers are managing directors Richard Figuly, Justin Rucker, Andrew Melchiorre, and Edward Fitzpatrick III. Figuly said that JPMAM focuses on “providing investors with value through carefully selecting bonds of the highest quality. We are thrilled to be able to offer our clients this strategy through an innovative ETF wrapper.”
Also, JPMAM’s Global Head of ETF Solutions Bryon Lake also said that investors “are looking for active fixed income solutions to navigate a tricky fixed income environment.”
“Being able to deliver our strong core bond investment team capabilities through the ETF wrapper is an excellent innovation for our clients,” he said. “JBND is a flagship addition to our active ETF capabilities.”
JBND carries an expense ratio of 30 basis points.
Expanding Its Suite of Active ETFs
JBND joins a growing suite of active ETFs from JPMAM. The issuer has been seeing growing interest in these active funds. In fact, the JPMorgan Equity Premium Income ETF (JEPI) alone has seen nearly $1 billion in inflows over the past month.
In addition, “JPMorgan has climbed the ETF leader board due to their active ETF lineup,” said VettaFi’s Head of Research Todd Rosenbluth. “We are seeing strong demand for fixed income ETFs in 2023. It’s exciting to see asset managers like JPMorgan bring more active strategies into the ETF market.”
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