Investors who wish to shield their portfolio returns with regular returns can consider investing in Bond ETFs. Investing in Exchange Traded Funds (ETFs) is a simple way to enjoy the benefits of diversification with minimal risk. JPMorgan Core Plus Bond ETF (JCPB) and PIMCO Multisector Bond Active Exchange-Traded Fund (PYLD) are two such ETFs that give investors exposure to fixed-income securities, ensuring consistent returns. Let’s look at the two ETFs in detail.
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JPMorgan Core Plus Bond ETF (JCPB)
The JPMorgan Core Plus Bond ETF invests in high-quality bonds with dynamic sector allocation. JCPB was founded in January 2019 and has an expense ratio of 0.38%. As of date, JCPB has AUM (assets under management) of $4.50 billion.
JCPB ETF pays a monthly dividend distribution of $0.20 per share, reflecting an above-sector average yield of 5%. Year-to-date, JCPB ETF has returned 3.83%.
PIMCO Multisector Bond Active Exchange-Traded Fund (PYLD)
The PIMCO Multisector Bond Active Exchange-Traded Fund invests in multi-sector fixed-income securities of both U.S. and non-U.S. public and private companies. PYLD seeks to deliver attractive risk-adjusted yield through diversified multi-sector bond exposure.
The ETF was founded in June 2023 and carries an expense ratio of 0.70%. Notably, PYLD has a current dividend yield of 5.68%, with its latest monthly dividend payment of $0.16 per share.
As of date, PYLD has an AUM of $2.11 billion. Year-to-date, PYLD has returned 6.87%.
Concluding Thoughts
Investing in high-grade, diversified bond ETFs could prove to be an attractive way to shield your portfolio returns amid an uncertain macro environment. Investors can consider the JCPB and PYLD ETFs to gain such exposure after thorough research.