JPMorgan Active Bond ETF

JBND

Market cap $3.24B

JBND is an actively managed fund aiming to outperform the Bloomberg U.S. Aggregate Bond Index. Spoiler: It's succeeding. Interesting comparison with the AGG ETF: it's immediately clear that over 50% of JBND's holdings aren't in AGG. Careful: it's not a flexible fund. The prospectus shows clear guidelines (which I like).

JBND is an active ETF from JPMorgan, overweight in AAA assets, with a 6.3-year duration, focusing on investment-grade bonds. The fund has outperformed AGG by 80 bps in the past year, favoring intermediate duration bonds, amid current market volatility. Rates are the main risk factor, with intermediate rates driving performance; a recession and Fed rate cuts would benefit JBND.

Jpmorgan Active Bond is an actively managed bond ETF. JBND focuses on high-quality, medium-term bonds, including treasuries and agency MBS. It has a higher yield and total returns than its benchmark, likely due to savvy positioning.

JPMorgan Active Bond ETF aims to provide Alpha to bond investors through active management and diverse investments, outperforming the Agg index. The ETF focuses on intermediate- and long-term bonds, takes ESG factors into consideration, and has $431m in AUM with a 4.49% 30-day SEC Yield. Based on its safer credit allocation and superior yield, I give the JBND a Buy rating; the AGG a Hold rating.

JBND is a new fixed income ETF from JPMorgan, actively managed to deliver total returns from U.S. investment grade bonds. JBND focuses on higher duration and securitized products compared to JPIE, with a portfolio composition mainly consisting of highly rated assets. In its short history, JBND has outperformed IEF, a treasuries-only ETF, showcasing the benefits of active management in the current macrocycle.

JPMorgan Active Bond ETF (JBND) is expected to begin trading in February NEW YORK , Jan. 8, 2024 /PRNewswire/ -- J.P. Morgan Asset Management today announced its intent to transfer the exchange listing the JPMorgan Active Bond ETF (NYSE: JBND) to the New York Stock Exchange (NYSE) from NYSE Arca, effective January 30, 2024.