(JSCP) JPMorgan Short Duration - Ratings and Ratios

The JPMorgan Short Duration Core Plus ETF (JSCP) must keep at least 70% of its net assets in securities that are rated investment-grade by a nationally recognized statistical rating organization (NRSRO) at the time of purchase, or in unrated securities the adviser judges to be of comparable quality. This rule is designed to preserve credit quality and limit exposure to higher-risk issuers.

Under normal market conditions, the fund caps its allocation to below-investment-grade (or equivalent unrated) securities at 30% of net assets, providing a controlled “high-yield” overlay while still emphasizing short-duration, lower-volatility holdings.

Foreign exposure is limited to a maximum of 25% of net assets, allowing the manager to add sovereign and agency debt from non-U.S. issuers for diversification, but keeping the portfolio primarily domestic to mitigate currency and geopolitical risk.

Key metrics as of the latest reporting period: a weighted average maturity of roughly 2.1 years, a 30-day SEC yield near 3.4%, and an expense ratio of 0.20%. The fund’s performance is closely tied to the Federal Reserve’s policy rate trajectory and the steepness of the short-end Treasury curve, both of which influence credit spreads and reinvestment risk in this sector.

Investors should watch the U.S. inflation outlook and upcoming Fed meeting minutes, as a shift toward higher rates could compress yields on short-duration investment-grade bonds, while a flattening curve may reduce the relative advantage of the fund’s “core-plus” credit tilt.

For a deeper quantitative breakdown and scenario analysis, consider exploring ValueRay’s platform, which offers interactive tools to model how changes in interest rates and credit spreads could affect JSCP’s risk-adjusted returns.