Two JPMorgan ETFs providing a destination for risk-averse investors

The JPMorgan Equity Premium Income ETF (JEPI) and JPMorgan Ultra-Short Income ETF (JPST) are two of the largest actively managed exchange-traded funds in the world, managed by Jon Maier’s firm. These ETFs aim to provide investors with a way to stay defensive in the market without completely exiting.

The main goal of these funds is to offer downside protection while generating income for investors. Maier, the chief ETF strategist at J.P. Morgan Asset Management, explained that when volatility, as measured by the VIX, increases, it presents an opportunity for investors to earn more income from JEPI. Conversely, when volatility decreases, the options written out of the money provide some upside potential in the underlying portfolio.

During April’s market turmoil, JEPI saw a modest 3% decline, showcasing its ability to weather volatile market conditions. As of the latest market close, the ETF is down approximately 4% for the year, while the S&P 500 has fallen nearly 5%. JEPI’s top holdings include companies like Mastercard, Visa, and Progressive, offering a diversified approach to downside protection and income generation.

On the other hand, the JPMorgan Ultra-Short Income Fund focuses on fixed income investments rather than U.S. equities. The fund has remained relatively stable so far this year, providing a ballast in investors’ portfolios and stability for those looking to protect their principal.

ETF Action’s Mike Akins highlighted the importance of these ETFs in meeting investors’ needs during turbulent market conditions. He noted that these funds serve as a safe haven for investors looking to weather the storm and navigate uncertain market environments.

According to J.P. Morgan Asset Management, the JPMorgan Ultra-Short Income Fund experienced the second-highest trading volume among active U.S. fixed income ETFs during the most volatile week of the year, indicating strong investor interest in defensive investment strategies.

In conclusion, the JPMorgan Equity Premium Income ETF and JPMorgan Ultra-Short Income ETF offer investors a way to stay defensive in volatile markets while generating income and protecting their portfolios. These funds serve as essential tools for investors looking to navigate uncertain market conditions and preserve their wealth.