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.
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."
J.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.