JPMB Profile
The JPMorgan USD Emerging Markets Sovereign Bond ETF is designed to provide investors with exposure to sovereign and quasi-sovereign debt securities from emerging markets. The fund is structured to invest at least 80% of its assets in securities that are part of its underlying index, which focuses on U.S. dollar-denominated bonds. These bonds include both fixed and floating rate instruments issued by sovereign governments and quasi-sovereign entities in emerging economies.
The underlying index for the fund is crafted using a proprietary, rules-based methodology developed and maintained by JPMorgan. This methodology selects liquid, U.S. dollar-denominated debt securities that meet specific criteria for credit quality, maturity, and market liquidity. By concentrating on emerging market bonds, the fund aims to capture the growth potential and yield advantages associated with these economies, while mitigating some of the risks through the use of U.S. dollar-denomination.
The ETF's focus on sovereign and quasi-sovereign debt securities allows it to target investments with varying levels of risk and return profiles. Sovereign bonds are issued by national governments, while quasi-sovereign bonds are issued by entities with some level of government backing or affiliation. This mix provides exposure to a broad spectrum of credit quality and economic conditions within emerging markets.
As a non-diversified fund, the JPMorgan USD Emerging Markets Sovereign Bond ETF does not adhere to a broad diversification strategy, concentrating instead on its targeted index of emerging market debt. This approach enables the fund to focus more intensively on specific segments of the emerging markets debt universe. The strategic emphasis on U.S. dollar-denominated securities helps to manage currency risk while aiming to deliver attractive income and growth potential from emerging market investments.
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