Daily ETF Watch: Active Yield Fund Planned

J.P. Morgan files for an actively managed high-yield fixed-income ETF.

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Reviewed by: Heather Bell
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Edited by: Heather Bell

J.P. Morgan Asset Management has filed for a second actively managed ETF after putting the JPMorgan Diversified Alternative ETF into registration in late 2015. The JPMorgan Disciplined High Yield ETF will invest mainly in a wide range of debt securities that are both high yield and high risk, with the goal of achieving high income first and capital appreciation second.

In addition to corporate and noncorporate debt, the fund will be able to invest in vehicles like convertible securities, preferred stock, floating-rate debt, distressed debt and more. There are no restrictions on the maturity or duration of its holdings, but it is only permitted to hold USD-denominated securities, according to the prospectus.

The fund’s selection process considers a variety of factors that indicate an issue’s liquidity or the quality of its issuer, as well as taking into account diversification with regard to issuers, sectors and regions. The prospectus notes that the fund’s holdings will be evaluated at least once a month.

The filing did not include an expense ratio, ticker or listing exchange.

Contact Heather Bell at [email protected].

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.