JP Morgan Debuts Active Short Duration ETF

March 03, 2021

Yesterday, J.P. Morgan added to its offering of fixed income ETFs with the launch of a short-term debt fund. The JPMorgan Short Duration Core Plus ETF (JSCP) is actively managed and can invest in a wide range of fixed income securities. It seeks to both preserve capital and generate total return.

The fund comes with an expense ratio of 0.33% and lists on the NYSE Arca.

JSCP generally targets a duration of three years or less. Although it has fairly wide latitude to invest where its managers see fit, the portfolio comes with some limitations. For one, the fund cannot invest more than 30% of its portfolio in junk bonds. It also limits the exposure to non-U.S. securities to 25%, the prospectus says.

The investment process relies on both top-down and bottom-up research, and also takes into account fundamental and quantitative data to invest in different fixed-income sectors. According to the document, the fund’s managers consider criteria such as “interest rate risk, credit risk, duration, liquidity, currency risk, legal provisions and the structure of the transaction” when selecting a security for JSCP’s portfolio.

J.P. Morgan’s largest U.S.-listed ETF is the actively managed $16 billion JPMorgan Ultra-Short Income ETF (JPST), which maintains an effective duration of one year or less. 

Contact Heather Bell at [email protected]

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