The U.S. economy has posted positive quarterly growth for the first time this year. The economy grew at a 2.6% annualized rate in the third quarter. However, the Fed is widely believed to deliver a fourth consecutive 75-basis-point interest rate hike at its next meeting.
The aggressive rate hikes to tame high inflation has caused widespread recessionary fears. On top of it, the upcoming midterm elections will likely induce more volatility in the stock market.
Amid this backdrop, investors looking for a safe way to earn a larger yield than other assets, such as money market funds or long-term treasuries, could consider investing in JPMorgan Ultra-Short Income ETF (JPST). It is an actively managed fund that facilitates cash management at a low cost. The fund invests in short-term investment-grade, U.S. dollar-denominated short-term fixed, variable, and floating rate debt.
Here are the factors that could influence JPST’s performance in the near term:
JPST currently has a $50.10 NAV and $22.59 billion in fund assets. Its expense ratio of 0.18% is considerably lower than the category average of 0.64%. Over the past year, the fund’s net inflows were $4.35 billion. Its net inflows were $3.68 billion over the past six months and $698.71 million over the past month.
The fund’s last monthly dividend of $0.09 was payable on October 6, 2022. Its annual dividend of $0.41 yields 0.80% on the current price.
As of September 30, JPST’s portfolio breakdown stood as follows…
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