JPMorgan International Bond Opportunities ETF

JPIB

Market cap $1.18B

In a previous article, we highlighted the benefits of getting international bond exposure in the context of using passive funds to achieve this level of fixed income diversification. Here, active strategies will be discussed in their application to the international bond market, which could be beneficial for further risk mitigation.

These ETFs are a one-stop shop for global diversification.

With talk of rate cuts getting more audible, they almost seem inevitable. Indeed, the CME FedWatch is forecasting an almost 90% chance of cuts.

JPIB is an international bond ETF from JPMorgan, investing in diversified investment-grade bonds with over 90% denominated in USD, minimizing currency risk. The fund has a balanced mix of corporate and government bonds, with a portfolio yield of 6.7% and a 5-year duration. JPIB exhibits low volatility and robust performance, especially during market downturns, making it a reliable addition to a balanced portfolio.

A new year means a new opportunity to refresh portfolios, all the way down to core allocations. For many investors, core allocations means finding a simple, passive fund.