On Friday, Colorado-based Tandem Financial disclosed a new position in JBND, acquiring 104,880 shares in the third quarter for an estimated $5.7 million.
What Happened
According to a filing with the Securities and Exchange Commission released Friday, Tandem Financial initiated a new stake in the JPMorgan Active Bond ETF (JBND 0.21%) by acquiring 104,880 shares in the third quarter. The estimated transaction value was $5.7 million, marking the firm’s first reported holding in the ETF.
What Else to Know
The new JBND stake accounts for 2.1% of Tandem Financial’s reportable U.S. equity assets under management as of September 30.
Top five holdings after the filing:
- NYSEMKT:IVV: $53.2 million (19.8% of AUM)
- NYSEMKT:BIV: $21.4 million (8% of AUM)
- NYSEMKT:GDX: $14.4 million (5.4% of AUM)
- NYSEMKT:SPY: $10.9 million (4.1% of AUM)
- NYSEMKT:FNDE: $10.2 million (3.8% of AUM)
As of Friday, JBND shares were priced at $54.34, up 2.4% over the past year.
ETF Overview
| Metric | Value |
|---|---|
| Net Assets | $3.4 billion |
| Price (as of Friday) | $54.34 |
| Yield | 4.4% |
| 1-year total return | 3.9% |
ETF Snapshot
The JPMorgan Active Bond ETF (JBND) is a large fixed-income fund that seeks to outperform the Bloomberg U.S. Aggregate Bond Index over a three to five year market cycle. The fund employs a flexible, active management bond selection approach, aiming to generate returns above its benchmark while providing a competitive yield. It targets institutional and retail investors seeking income and total return from fixed income markets
Foolish Take
Tandem Financial’s move into the JPMorgan Active Bond ETF signals growing confidence in the bond market’s recovery as rates begin to moderate. The Colorado-based wealth manager initiated a $5.7 million position in the third quarter, marking its first reported stake in the actively managed fund, according to its latest SEC filing.
In its latest commentary, J.P. Morgan Asset Management noted that “market calm has been restored” as the Fed’s rate-cutting cycle resumes and global economies adjust to U.S. tariffs. The firm expects continued support for global bond markets into 2026, viewing “any sell-off as a buying opportunity.” Its latest outlook projects the Fed funds rate to settle around 3.375% by early 2026, with the 10-year Treasury yield hovering between 3.75% and 4.25%. In this environment, JPMorgan favors short, securitized credit over short corporates for a better yield-to-risk balance.
For Tandem, JBND offers active flexibility across Treasuries, corporates, and mortgage-backed securities—well-suited to capture opportunities as yields tighten. The fund’s 4.5% trailing yield and top-decile performance make it an appealing addition for advisors rebuilding fixed-income allocations. For long-term investors, Tandem’s move reinforces the view that bonds are back as a stabilizing force after recent volatility.
Glossary
13F reportable AUM: The portion of assets under management that must be disclosed in SEC Form 13F filings by institutional investors.
ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Dividend yield: Annual dividends paid by an investment, expressed as a percentage of its current price.
Annualized yield: The yield of an investment projected over a one-year period, based on current payouts.
Benchmark: A standard, often a market index, used to compare the performance of a fund or investment.
Bloomberg U.S. Aggregate Bond Index: A widely used benchmark measuring the performance of the U.S. investment-grade bond market.
Active management: An investment strategy where managers make specific buy or sell decisions to outperform a benchmark.
Portfolio composition: The mix of asset types and securities held within an investment fund or portfolio.
Market cycle: The recurring phases of growth and decline in financial markets, typically measured over several years.
Trailing twelve months (TTM): The most recent 12-month period for which financial data is available.
