JPMorgan Short Duration Core Plus ETF (JSCP US) - Portfolio Construction Methodology

Core Insights - The JPMorgan Short Duration Core Plus ETF (JSCP) employs a multi-sector, short-maturity fixed income portfolio strategy focused on investment-grade U.S. rate and credit markets, with the flexibility to include non-investment-grade and securitized sectors when justified by compensation [1] Portfolio Construction Methodology - The eligible instruments for the portfolio include Treasuries, agencies, corporates, mortgage- and asset-backed securities, as well as select high yield and emerging-markets exposures, utilizing derivatives for efficient implementation of curve, credit, and currency strategies [1] - Security selection combines top-down duration/curve and sector budgeting with bottom-up analysis of issuers, structures, and collateral, aiming for stable carry and controlled drawdown risk [1] - The portfolio construction emphasizes broad diversification, tight liquidity management, and a shorter duration profile to mitigate sensitivity to interest rate changes, with issuer/sector and risk-budget caps to limit concentration [1] - Active rotation across curves and spreads is reflected in turnover, with adjustments made based on spread normalization, deteriorating credit metrics, adverse technicals, or liquidity re-optimization [1]