JP Morgan Asset Management has announced an expansion of its US-listed ‘BetaBuilders’ suite of low-cost, core portfolio ETFs with the addition of three fixed income funds.
JP Morgan’s ‘BetaBuilders’ ETFs provide low-cost, core portfolio exposures.
The funds, which will provide USD aggregate, investment-grade corporate, and high yield corporate bond exposures, will be created in February 2023 following the conversion of three existing actively managed ETFs.
Aggregate
The JPMorgan BetaBuilders US Aggregate Bond ETF (BBAG US) is being created from the $1.2 billion JPMorgan US Aggregate Bond ETF (JAGG US).
BBAG will track the Bloomberg US Aggregate Bond Index which is a flagship measure of investment-grade debt denominated in US dollars. The index covers Treasury, government-related, corporate, and securitized fixed-rate bonds from issuers worldwide. Eligible securities are drawn from across the yield curve.
The fund will come with an expense ratio of just 0.03%, matching the cost of the $83bn Vanguard Total Bond Market ETF (BND US) and the $81bn iShares Core US Aggregate Bond ETF (AGG US).
Investment-grade corporate
The JPMorgan BetaBuilders USD Investment Grade Corporate Bond ETF (BBCB US) is being created from the $40 million JPMorgan Corporate Bond Research Enhanced ETF (JIGB US).
BBCB will track the Bloomberg US Corporate Bond Index which consists of investment-grade, US dollar-denominated debt from corporate issuers worldwide. Eligible bonds are also drawn from across the yield curve.
The fund will come with an expense ratio of 0.09% which is cheaper than its largest direct competitor – the $39bn iShares iBoxx USD Investment Grade Corporate Bond ETF (LQD US) – which has an expense ratio of 0.14%.
High yield
The JPMorgan BetaBuilders USD High Yield Corporate Bond ETF (BBHY US) is being created from the $400m JPMorgan High Yield Research Enhanced ETF (JPHY US).
BBHY will track the ICE BofA US High Yield Total Return Index which covers sub-investment-grade, US dollar-denominated corporate bonds issued in the US domestic market. Eligible bonds are drawn from across the yield curve.
The fund will come with an expense ratio of 0.15%, less than a third of the cost of the $18bn iShares iBoxx USD High Yield Corporate Bond ETF (HYG US) which has an expense ratio of 0.48%.