Morningstar - Q1 2021 - 54

Strategies

Still a Strong Choice
JPMorgan International Bond Opportunities ETF now has
a larger stake abroad.
BEST IDEAS: PASSIVE

Evangelia Gkeka

JPMorgan International Bond Opportunities ETF JPIB

This article is adapted from the ETF's Morningstar Global Fund Report dated
Dec. 16, 2020.

Stats 12/31/2020

JPMorgan International Bond Opportunities ETF JPIB continues to merit
a Morningstar Analyst Rating of Bronze. Its comanagers have delivered strong
relative performance in a variety of market climates by utilizing the firm's
wide range of resources.

Morningstar Analyst Rating
´

Morningstar Category
Multisector Bond

Expense Ratio
0.50%

Total Assets
$232 Million

3-Yr Annlzd Return
5.03%

3-Yr % Rank in Cat
36

Morningstar Pillars 12/31/2020
Process
Above Avg

On Sept. 14, JPMorgan Global Bond Opportunities ETF was renamed
JPMorgan International Bond Opportunities ETF, reflecting a change in its
allocation from 40% outside the United States to 80% outside the U.S.
Its benchmark changed from Bloomberg Barclays Multiverse Index Hedged
to USD to Bloomberg Barclays Multiverse Index ex-USA Hedged to USD.

People
Average

Parent
Above Avg

Growth of 10K 12/31/2020

$12K
11.58

JPMorgan International Bond Opps

However, the strategy's investment process, total return objective, and 5%
to 10% volatility target remain unchanged. The strategy retains considerable
flexibility in investing across a variety of sectors, such as high-yield and
investment-grade corporates, emerging markets, and securitized debt. We have
confidence in the team's ability to proactively reduce risk and modify
exposures to limit drawdowns in periods of market stress.

9
01/2018

01/2019

01/2020
Morningstar Ratings 12/31/2020

Morningstar Style Box 12/31/2020
Interest Rate Sensitivity
High

Mstar
Data surveyed
Period Return
from the
fund company. 3-Yr Average

Mid
Low

The fund has a short track record since the strategy transition in September,
but its previous global version outperformed peers since inception in 2017.
Its large stake in high-yield debt, which for most of the time since inception
has ranged between 50% and 65%, helped in a generally benign environment
for corporate credit. However, the team has exercised sound judgment in
reducing that stake when valuations appear less compelling. For example, the
fund held up better than most peers during the sharp credit market sell-off in
first-quarter 2020 as the team reduced its high-yield and emerging-markets
exposure, increased duration, and added value with tactical currency trades. K
Evangelia Gkeka is a senior manager research analyst with Morningstar U.K.

Ltd

Mod

Morningstar Q1 2021

Mstar
Risk

Mstar
Rating

Below Avg QQQQ

5-Yr

-

-

-

10-Yr

-

-

-
QQQQ

Overall Rating

Ext

Top 5 Regions 12/31/2020

Sectors

■ Fund % 

❙ Category Average %

United States

3-Yr Avg
77.2

12.1

32.6

Italy

0.7 8.6

2.4

United Kingdom

1.8 7.9

2.5

France

0.7 7.0

2.7

Germany

-0.4
-20%

54

10

Morningstar Global Core Bd PR Hdg US

Credit Quality

The strategy benefits from a well-resourced and experienced team headed
by global fixed-income CIO Bob Michele and international fixed-income CIO Iain
Stealey. Three comanagers were added in 2020: Lisa Coleman, head of global
investment-grade corporate credit, who has been at the firm since 2008;
Peter Aspbury, a high-yield portfolio manager who joined the firm in 2010;
and Diana Amoa, an emerging-markets portfolio manager who joined in 2015.

10.93 11

6.4

0

2.2
20

40

60

80
Morningstar - Q1 2021

Table of Contents for the Digital Edition of Morningstar - Q1 2021
