JPMorgan Short Duration Core Plus ETF | Ticker: JSCP | Listing Exchange: NYSE Arca |
Market Sector |
Min |
Max |
U.S. Treasury & Agency | 10% | 50% |
U.S. Agency Residential Mortgage-Backed Securities | 10% | 30% |
Asset-Backed Securities | 0% | 20% |
Commercial Mortgage-Backed Securities | 0% | 20% |
Investment Grade Corporate Debt Securities | 20% | 50% |
High Yield Corporate Debt | 0% | 20% |
Emerging Markets Debt | 0% | 15% |
NON-FUNDAMENTAL INVESTMENT
OBJECTIVE |
An investment objective is fundamental if it cannot be changed without the consent of a majority of the outstanding Shares of the Fund. The Fund’s investment objective is not fundamental and may be changed without the consent of a majority of the outstanding Shares of the Fund. |
Short Duration Core Plus
ETF | |
Asset-Backed, Mortgage-Related and Mortgage-Backed Securities Risk |
• |
Authorized Participant Concentration Risk | • |
Cash Transactions Risk | • |
Covenant Lite Loan Risk | ○ |
CPI-U Strategy Risk | ○ |
Credit Risk | • |
Currency Risk | • |
Cyber Security Risk | ○ |
Derivatives Risk | • |
ETF and Other Investment Company Risk | ○ |
Foreign Issuer Risk | • |
Foreign Securities and Emerging Markets Risk | • |
General Market Risk | • |
Geographic Focus Risk | • |
Government Securities Risk | • |
High Yield Securities Risk | • |
Industry and Sector Focus Risk | • |
Inflation-Linked and Inflation-Protected Security Risk | ○ |
Interest Rate Risk | • |
Inverse Floater Risk | ○ |
Loan Risk | ○ |
LIBOR Discontinuance or Unavailability Risk | • |
Market Trading Risk | • |
Mortgage Dollar Roll Risk | • |
Municipal Securities Risk | ○ |
Preferred Stock Risk | ○ |
Prepayment Risk | • |
Privately Placed Securities Risk | • |
Securities Lending Risk | ○ |
Sovereign Debt Risk | • |
Transactions and Liquidity Risk | ○ |
Volcker Rule Risk | ○ |
Zero-Coupon, Pay-In-Kind and Deferred Payment Securities Risk | • |
• | Main Risks |
○ | Additional Risks |
WHAT IS A DERIVATIVE?
|
Derivatives are securities or contracts (for example, futures and options) that derive their value from the performance of underlying assets or securities. |
WHAT IS A CASH EQUIVALENT?
|
Cash equivalents are highly liquid, high-quality instruments with maturities of three months or less on the date they are purchased. They include securities issued by the U.S. government, its agencies and instrumentalities, repurchase agreements, certificates of deposit, bankers’ acceptances, commercial paper, money market mutual funds, and bank deposit accounts. |
INSTRUMENT |
RISK TYPE |
Adjustable Rate Mortgage
Loans (ARMs):
Loans
in a mortgage pool which provide for a fixed initial mortgage interest
rate for a specified period of time, after which the rate may be subject
to periodic adjustments. |
Credit Interest Rate Liquidity Market Political Prepayment Valuation |
Asset-Backed Securities:
Securities
secured by company receivables, home equity loans, truck and auto loans,
leases and credit card receivables or other securities backed by other
types of receivables or other assets. |
Credit Interest Rate Liquidity Market Political Prepayment Valuation |
Auction Rate Securities:
Auction
rate municipal securities and auction rate preferred securities issued by
closed-end investment companies. |
Credit Interest Rate Liquidity Market |
Bank Obligations:
Bankers’
acceptances, certificates of deposit and time deposits. Bankers’
acceptances are bills of exchange or time drafts drawn on and accepted by
a commercial bank. Maturities are generally six months or less.
Certificates of deposit are negotiable certificates issued by a bank for a
specified period of time and earning a specified return. Time deposits are
non-negotiable receipts issued by a bank in exchange for the deposit of
funds. |
Credit Currency Interest Rate Liquidity Market Political |
Brady Bonds:
Securities
created through the exchange of existing commercial bank loans to public
and private entities in certain emerging markets for new bonds in
connection with debt restructurings. |
Credit Currency Foreign Investment Interest Rate Market Political |
Call and Put Options:
A
call option gives the buyer the right to buy, and obligates the seller of
the option to sell a security at a specified price at a future date. A put
option gives the buyer the right to sell, and obligates the seller of the
option to buy a security at a specified price at a future date. The Fund
will sell only covered call and secured put options. |
Credit Leverage Liquidity Management Market |
Commercial Paper:
Secured
and unsecured short-term promissory notes issued by corporations and other
entities. Maturities generally vary from a few days to nine
months. |
Credit Currency Interest Rate Liquidity Market Political Valuation |
Common Stock:
Shares
of ownership of a company. |
Market |
INSTRUMENT |
RISK TYPE |
Convertible Securities:
Bonds
or preferred stock that can convert to common stock including contingent
convertible securities. |
Credit Currency Foreign Investments Interest Rate Liquidity Market Political Valuation |
Corporate Debt
Securities:
May
include bonds and other debt securities of domestic and foreign issuers,
including obligations of industrial, utility, banking and other corporate
issuers. |
Credit Currency Interest Rate Liquidity Market Political Valuation |
Credit Default Swaps
(CDSs):
A
swap agreement between two parties pursuant to which one party pays the
other a fixed periodic coupon for the specified life of the agreement. The
other party makes no payment unless a credit event, relating to a
predetermined reference asset, occurs. If such an event occurs, the party
will then make a payment to the first party, and the swap will
terminate. |
Credit Currency Interest Rate Leverage Liquidity Management Market Political Valuation |
Demand Features:
Securities
that are subject to puts and standby commitments to purchase the
securities at a fixed price (usually with accrued interest) within a fixed
period of time following demand by the Fund. |
Liquidity Management Market |
Emerging Market
Securities:
Securities
issued by issuers or governments in countries with emerging economies or
securities markets which may be undergoing significant evolution and rapid
development. |
Foreign Investment |
Exchange-Traded Funds
(ETFs):
Ownership
interest in unit investment trusts, depositary receipts, and other pooled
investment vehicles that hold a portfolio of securities or stocks designed
to track the price performance and dividend yield of a particular
broad-based, sector or international index. ETFs include a wide range of
investments. |
Investment
Company Market |
Foreign Currency
Transactions:
Strategies
used to hedge against currency risks, for other risk management purposes
or to increase income or gain to the Fund. These strategies may consist of
use of any of the following: options on currencies, currency futures,
options on such futures, forward foreign currency transactions (including
non-deliverable forwards (“NDFs”)), forward rate agreements and currency
swaps, caps and floors. |
Credit Foreign Investment Leverage Liquidity Management Market Prepayment |
Foreign Investments:
Equity
and debt securities (e.g., bonds and commercial paper) of foreign entities
and obligations of foreign branches of U.S. banks and foreign banks.
Foreign securities may also include American Depositary Receipts (ADRs),
Global Depositary Receipts (GDRs), European Depositary Receipts (EDRs) and
American Depositary Securities (ADSs). |
Foreign
Investment Liquidity Market Political Prepayment |
INSTRUMENT |
RISK TYPE |
High Yield/High Risk
Securities/Junk Bonds:
Securities
that are generally rated below investment grade by the primary rating
agencies or are unrated but are deemed by the Fund’s adviser to be of
comparable quality. |
Credit Currency High Yield Securities Interest Rate Liquidity Market Political Portfolio Quality Valuation |
Inflation-Linked Debt
Securities:
Includes
fixed and floating rate debt securities of varying maturities issued by
the U.S. government as well as securities issued by other entities such as
corporations, foreign governments and foreign issuers. |
Credit Currency Interest Rate Political |
Inverse Floating Rate
Instruments:
Leveraged
variable debt instruments with interest rates that reset in the opposite
direction from the market rate of interest to which the inverse floater is
indexed. |
Credit Leverage Market |
Investment Company
Securities:
Shares
of other investment companies, including money market funds for which the
adviser and/or its affiliates serve as investment adviser or
administrator. The adviser will waive certain fees when investing in funds
for which it serves as investment adviser, to the extent required by law
or by contract. |
Investment
Company Market |
Loan Assignments and
Participations:
Assignments
of, or participations in, all or a portion of loans to corporations or to
governments, including governments of less developed
countries. |
Credit Currency Extension Foreign Investment Interest Rate Liquidity Market Political Prepayment |
Master Limited
Partnerships (MLPs):
Limited
partnerships that are publicly traded on a securities
exchange. |
Market |
Mortgages (Directly
Held):
Debt
instruments secured by real property. |
Credit Environmental Extension Interest Rate Liquidity Market Natural Event Political Prepayment Valuation |
INSTRUMENT |
RISK TYPE |
Mortgage-Backed
Securities:
Debt
obligations secured by real estate loans and pools of loans such as
collateralized mortgage obligations (CMOs), commercial mortgage-backed
securities (CMBSs) and other asset-backed structures. |
Credit Currency Extension Interest Rate Leverage Liquidity Market Political Prepayment Tax Valuation |
Mortgage Dollar Rolls
1 A
transaction in which the Fund sells securities for delivery in a current
month and simultaneously contracts with the same party to repurchase
similar but not identical securities on a specified future
date. |
Currency Extension Interest Rate Leverage Liquidity Market Political Prepayment |
Municipal Securities:
Securities
issued by a state or political subdivision to obtain funds for various
public purposes. Municipal securities include, among others, private
activity bonds and industrial development bonds, as well as general
obligation notes, tax anticipation notes, bond anticipation notes, revenue
anticipation notes, other short-term tax-exempt obligations, municipal
leases, obligations of municipal housing authorities and single family
revenue bonds. |
Credit Interest Rate Market Natural Event Political Prepayment Tax |
New Financial Products:
New
options and futures contracts and other financial products continue to be
developed and the Fund may invest in such options, contracts and
products. |
Credit Liquidity Management Market |
Obligations of
Supranational Agencies:
Obligations
which are chartered to promote economic development and are supported by
various governments and governmental agencies. |
Credit Foreign Investment Liquidity Political Valuation |
Options and Futures
Transactions:
The
Fund may purchase and sell (a) exchange traded and over the counter put
and call options on securities, indexes of securities and futures
contracts on securities, indexes of securities, interest rate futures
contracts and interest rate swaps and (b) futures contracts on securities
and indexes of securities. |
Credit Leverage Liquidity Management Market |
Preferred Stock:
A
class of stock that generally pays a dividend at a specified rate and has
preference over common stock in the payment of dividends and in
liquidation. |
Market |
Private Placements,
Restricted Securities and Other Unregistered Securities:
Securities
not registered under the Securities Act of 1933, such as privately placed
commercial paper and Rule 144A securities. |
Liquidity Market Valuation |
1 | All
forms of borrowing (including mortgage dollar rolls) are limited in the
aggregate and may not exceed 33
1 ⁄
3 %
of the Fund’s total assets except as permitted by law.
|
INSTRUMENT |
RISK TYPE |
Real Estate Investment
Trusts (REITs):
Pooled
investment vehicles which invest primarily in income producing real estate
or real estate related loans or interest. |
Credit Interest Rate Liquidity Management Market Political Prepayment Tax Valuation |
Repurchase Agreements:
The
purchase of a security and the simultaneous commitment to return the
security to the seller at an agreed upon price on an agreed upon date.
This is treated as a loan. |
Credit Liquidity Market |
Reverse Repurchase
Agreements
1 The
sale of a security and the simultaneous commitment to buy the security
back at an agreed upon price on an agreed upon date. This is treated as a
borrowing by the Fund. |
Credit Liquidity Market |
Securities Issued in
Connection with Reorganizations and Corporate Restructurings:
In
connection with reorganizing or restructuring of an issuer, an issuer may
issue common stock or other securities to holders of its debt
securities. |
Market |
Securities Lending:
The
lending of up to 33
1 ⁄3
%
of the Fund’s total assets. In return, the Fund will receive cash, other
securities, and/or letters of credit as collateral. |
Credit Leverage Market |
Short-Term Funding
Agreements:
Agreements
issued by banks and highly rated U.S. insurance companies such as
Guaranteed Investment Contracts (GICs) and Bank Investment Contracts
(BICs). |
Credit Liquidity Market |
Sovereign Obligations:
Investments
in debt obligations issued or guaranteed by a foreign sovereign government
or its agencies, authorities or political subdivisions. |
Credit Foreign Investment Liquidity Political Valuation |
Stripped Mortgage-Backed
Securities:
Derivative
multi-class mortgage securities which are usually structured with two
classes of shares that receive different proportions of the interest and
principal from a pool of mortgage assets. These include Interest-Only (IO)
and Principal-Only (PO) securities issued outside a Real Estate Mortgage
Investment Conduit (REMIC) or CMO structure. |
Credit Liquidity Market Political Prepayment Valuation |
Structured Investments:
A
security having a return tied to an underlying index or other security or
asset class. Structured investments generally are individually negotiated
agreements and may be traded over-the-counter. Structured investments are
organized and operated to restructure the investment characteristics of
the underlying security. |
Credit Foreign Investment Liquidity Management Market Valuation |
Swaps and Related Swap
Products:
Swaps
involve an exchange of obligations by two parties. Caps and floors entitle
a purchaser to a principal amount from the seller of the cap or floor to
the extent that a specified index exceeds or falls below a predetermined
interest rate or amount. The Fund may enter into these transactions to
manage its exposure to changing interest rates and other
factors. |
Credit Currency Interest Rate Leverage Liquidity Management Market Political Valuation |
INSTRUMENT |
RISK TYPE |
Synthetic Variable Rate
Instruments
:
Instruments that generally involve the deposit of a long-term tax exempt
bond in a custody or trust arrangement and the creation of a mechanism to
adjust the long-term interest rate on the bond to a variable short-term
rate and a right (subject to certain conditions) on the part of the
purchaser to tender it periodically to a third party at
par. |
Credit Liquidity Market |
Temporary Defensive
Positions:
To
respond to unusual circumstances the Fund may invest in cash and cash
equivalents for temporary defensive purposes. |
Credit Interest Rate Liquidity Market |
Treasury Receipts:
The
Fund may purchase interests in separately traded interest and principal
component parts of U.S. Treasury obligations that are issued by banks or
brokerage firms and that are created by depositing U.S. Treasury notes and
U.S. Treasury bonds into a special account at a custodian bank. Receipts
include Treasury Receipts (TRs), Treasury Investment Growth Receipts
(TIGRs), and Certificates of Accrual on Treasury Securities
(CATS). |
Market |
Trust Preferred:
Securities
with characteristics of both subordinated debt and preferred stock. Trust
preferreds are generally long term securities that make periodic fixed or
variable interest payments. |
Credit Currency Interest Rate Liquidity Market Political Valuation |
U.S. Government Agency
Securities:
Securities
issued or guaranteed by agencies and instrumentalities of the U.S.
government. These include all types of securities issued by Ginnie Mae,
Fannie Mae and Freddie Mac, including funding notes, subordinated
benchmark notes, CMOs and REMICs. |
Credit Government Securities Interest Rate Market |
U.S. Government
Obligations:
May
include direct obligations of the U.S. Treasury, including Treasury bills,
notes and bonds, all of which are backed as to principal and interest
payments by the full faith and credit of the United States, and separately
traded principal and interest component parts of such obligations that are
transferable through the Federal book-entry system known as Separate
Trading of Registered Interest and Principal of Securities (STRIPS) and
Coupons Under Book Entry Safekeeping (CUBES). |
Interest
Rate Market |
Variable and Floating
Rate Instruments:
Obligations
with interest rates which are reset daily, weekly, quarterly or some other
frequency and which may be payable to the Fund on demand or at the
expiration of a specified term. |
Credit Liquidity Market Valuation |
When-Issued Securities,
Delayed Delivery Securities and Forward Commitments:
Purchase
or contract to purchase securities at a fixed price for delivery at a
future date. |
Credit Leverage Liquidity Market Valuation |
Zero-Coupon, Pay-in-Kind
and Deferred Payment Securities:
Zero-coupon
securities are securities that are sold at a discount to par value and on
which interest payments are not made during the life of the security.
Pay-in-kind securities are securities that have interest payable by
delivery of additional securities. Deferred payment securities are
zero-coupon debt securities which convert on a specified date to interest
bearing debt securities. |
Credit Currency Interest Rate Liquidity Market Political Valuation Zero-Coupon Securities |