Two JPMorgan ETFs Providing Safe Haven for Risk-Averse Investors
Published: May 2, 2025
In a turbulent market landscape where volatility can wreak havoc on investment portfolios, two exchange-traded funds (ETFs) from JPMorgan are emerging as key options for risk-averse investors. The JPMorgan Equity Premium Income ETF (JEPI) and the JPMorgan Ultra-Short Income ETF (JPST) have gained significant attention as they cater to those seeking downside protection while still participating in market movements.
A Strategic Approach to Risk Management
Jon Maier, Chief ETF Strategist at J.P. Morgan Asset Management, explained how the firm’s ETFs offer a dual advantage: providing downside protection and generating income. These funds are currently ranked as the number one and number three actively managed ETFs globally, respectively, according to VettaFi.
“When the VIX [volatility index] increases, it creates opportunities for JEPI to increase income for investors,” Maier stated in an interview with CNBC’s "ETF Edge". He further noted that when volatility subsides, JEPI’s strategy of writing out-of-the-money options can contribute to potential upside in the underlying portfolio.
Despite a 3% decline in April amidst heightened market volatility, JEPI is faring comparatively well; it remains down approximately 4% year-to-date, while the overall S&P 500 Index has experienced a decline of nearly 5%. The ETF’s top holdings include major companies such as Mastercard, Visa, and Progressive, as of April 30. ### Fixed Income Stability with JPST
On the other hand, the JPMorgan Ultra-Short Income ETF focuses on fixed income investments rather than U.S. equity. The fund has managed to stay virtually flat this year, offering a sense of stability for investors concerned about principal protection. Maier emphasized the importance of this fund as a “ballast” in investment portfolios during uncertain market conditions.
According to ETF Action’s Mike Akins, these ETFs address a pressing need for investors. “This category is where people are hiding out to weather the storm,” he remarked during an appearance on "ETF Edge."
Demand Amid Market Volatility
The market response to these ETFs is perhaps best illustrated by their trading volume during times of high volatility. The JPMorgan Ultra-Short Income Fund ranked as the second highest in volume among active U.S. fixed income ETFs during a period of intense market fluctuations from April 3 to April 10. This spike in demand indicates a pronounced shift among investors looking for refuge in more stable investment vehicles as they navigate an unpredictable economic environment.
Conclusion
As investors seek ways to manage their portfolios amid market uncertainties, JPMorgan’s JEPI and JPST ETFs stand out as prominent options for those prioritizing risk mitigation and income generation. With their strategies tailored specifically to weather market fluctuations, these funds are setting the stage for risk-averse investors looking to maintain stability in their financial ventures.
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