JPMorgan Core Plus Bond ETF draws $1B in monthly inflows

VettaFi head of research Todd Rosenbluth reported that JPMorgan Core Plus Bond ETF (JCPB) took in roughly $1 billion of net inflows in the past month and about $5 billion year-to-date. The fund’s assets have risen toward $14 billion.

Rosenbluth noted the ETF’s 30-day SEC yield is about 5% and its expense ratio is just under 0.40%. He said the fund has a track record that extends beyond six years.

JCPB follows a core-plus bond strategy that lets managers move beyond a traditional aggregate bond exposure. Holdings include investment-grade corporate debt, U.S. Treasuries and agency bonds, and the portfolio can include non-investment-grade corporate debt at times.

Rosenbluth described the managers’ approach as adjusting sector exposure and seeking opportunities across the bond market while avoiding excessive duration. He added that the fund has outperformed the Bloomberg U.S. Aggregate Bond Index and many peer funds over its record.

Active fixed-income ETFs have captured a large share of net new money flowing into bond ETFs this year, Rosenbluth said, and JCPB has been a notable recipient of those flows.

The fund has received favorable ratings from research firms and has been recognized for total and consistent returns as well as its costs, Rosenbluth said.

Advisors use JCPB in different ways: some pair a low-cost index core with an active core-plus ETF to access sectors not fully represented in the broad index; others move from active mutual funds to active ETFs for lower fees and greater intraday liquidity.

Rosenbluth cautioned that active management does not guarantee outperformance. He warned that credit or duration positions can underperform in certain rate environments and recommended that investors review fund data and independent ratings before allocating to active fixed-income ETFs.