JP Morgan Asset Management (JPMAM) has launched JPM BetaBuilders US Treasury Bond UCITS ETF – GBP Hedged (BBTP). This follows the launch of JPM BetaBuilders US Treasury Bond UCITS ETF (BBTR) earlier this month. BBTP is now available on the London Stock Exchange.
Like BBTR, BBTP aims to offer investors liquid, low-cost beta exposure to dollar-denominated Treasury bonds issued by the U.S. government across the full yield curve and will closely track the JP Morgan Government Bond Index United States. Both ETFs leverage JPMAM’s experience in index replication, portfolio management and scale in custom technology solutions. BBTP will have a Total Expense Ratio (TER) of 10 basis points.
John Adu, Co-Head of ETF Distribution at JP Morgan Asset Management, says: “We’re continuing to listen to and respond to clients’ needs for a range of cost-efficient solutions that are geared towards this late cycle environment. This includes currency-hedged ETFs which can help asset allocators create more balanced portfolios, as they seek to navigate an evolving macro backdrop.”
Mike Bell, Global Market Strategist at JP Morgan Asset Management, says: “While the timing of the next downturn remains uncertain, many investors are starting to add in some portfolio hedges to help balance the riskier assets in their portfolio, as we move later into the economic cycle. By including some treasuries, investors are seeking to create a more balanced portfolio and help reduce overall portfolio losses when the next economic downturn eventually arrives. For UK investors thinking about incorporating US government bond exposure, they may want to consider hedging the currency risk, given the uncertainty around the outlook for sterling against the dollar.”
