Furthermore, the ETF may hold up to 20% of assets in exchange traded futures contracts, credit default swaps and other ETF to seek performance that corresponds to the Underlying Index, particularly in emerging markets where it is difficult to gain access.
The underlying index will rebalance its portfolio on a monthly basis within each country and semi-annually across countries.
“Fixed income ETFs continue to revolutionize investing by providing access to an often challenging asset class in a liquid, transparent and cost-effective vehicle,” Joanna Gallegos, U.S. Head of ETFs for J.P. Morgan Asset Management, said in a note. “With JPMB, clients can gain exposure to emerging market debt, which is a growing component of global bond markets, and it can serve as a diversifier to a core bond portfolio.”
For more information on new fund products, visit our new ETFs category.