JSCP Profile
The JPMorgan Short Duration Core Plus ETF is designed to provide investors with exposure to a diversified portfolio of fixed-income securities, focusing on maintaining a relatively short duration. Under normal market conditions, the fund is required to allocate at least 70% of its net assets to securities that are rated investment grade by a nationally recognized statistical rating organization (NRSRO) or are unrated but deemed by the adviser to possess comparable quality. This strategy emphasizes a high credit quality and aims to manage interest rate risk effectively by concentrating on short-duration securities.
The fund maintains a disciplined approach to credit risk, limiting investments in below investment grade securities (or their unrated equivalents) to no more than 30% of its net assets. This restriction helps to safeguard the portfolio from higher credit risk, focusing instead on securities that offer stability and lower volatility. By adhering to this guideline, the fund seeks to balance the pursuit of yield with the preservation of capital.
In addition to its core holdings in investment-grade securities, the JPMorgan Short Duration Core Plus ETF may allocate up to 25% of its net assets to foreign securities, including sovereign and agency debt. This international exposure aims to enhance diversification and potentially capture additional opportunities in global fixed-income markets. By including foreign securities, the fund broadens its investment universe and seeks to benefit from diverse economic and interest rate environments.
Overall, the JPMorgan Short Duration Core Plus ETF is structured to offer investors a balance of high credit quality and diversified fixed-income exposure. Its focus on short-duration securities helps to manage interest rate risk, while its strategic allocation to foreign securities provides potential for additional yield and diversification. This approach is designed to meet the needs of investors seeking stability and income in a managed risk environment.
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