J.P. Morgan Asset Management has rolled out its first fixed income ETF , known as the JPMorgan Disciplined High Yield (JPHY).
The new vehicle will offer high yield exposure by systematically excluding securities that portray unattractive risk-reward profiles.
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It will aim to generate higher risk-adjusted returns and lower credit risk relative to existing passive options.
The fund will be run by the group’s high yield team that manages over $35bn in assets under management. The senior managers in the team have over two decades of investment experience.
J.P. Morgan Asset Management global head of ETFs Robert Deutsch said: "Fixed income is an important component of an investor's diversification strategy and JPHY makes the high yield segment of the market more accessible, in a cost-effective manner.
"Additionally, corporate high yield bonds tend to outperform during periods of rising rates and economic growth, which has been a concern for our clients given the challenging market conditions."
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By GlobalDataJ.P. Morgan Asset Management provides global investment management in equities, fixed income, real estate, hedge funds, private equity as well as liquidity, managing assets of $1.7 trillion as of 31 December 2015. The new offering expands the firm’s ETF suite to 10 products.
