JP Morgan launches active ultra-short fixed income ETF

May 22nd, 2017 | By | Category: Fixed Income

JP Morgan Asset Management has launched the JP Morgan Ultra-Short Income ETF (Bats Exchange: JPST), an actively managed ETF that aims to provide current income while maintaining low volatility of principal.

J.P. Morgan launches active fixed income ETF

J.P. Morgan Asset Management’s ETF suite now features 13 products with over $1 billion in assets under management. (File image)

List on Bats Exchange, the strategy is designed to provide additional income beyond that of money market funds, while mitigating volatility and limiting duration exposure. It invests primarily in a diversified portfolio of short-term investment-grade fixed and floating-rate corporate and structured debt.

The fund targets a duration of less than one year and seeks attractive yield while focusing on active credit risk management to deliver stable returns.

David Martucci, global head of the managed reserves team at JP Morgan, said: “JP Morgan is a leading global fixed income manager with deep experience in all areas of the market. The JP Morgan Ultra-Short Income ETF is a natural extension of our well-established global liquidity platform and offers our clients another smart option.”

Bob Deutsch, US head of ETFs, JP Morgan Asset Management, added: “In a rising interest rate environment, investors are increasingly looking for a safe haven to park their cash and mitigate risk, and we are proud to offer an innovative solution to help our clients build stronger portfolios.”

The fund currently has 62 holdings and has net expenses of 0.18%.

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