JPMorgan Ultra-Short Municipal Income ETF

JPMorgan Ultra-Short Municipal Income ETF (JMST) is an actively managed fund. It holds short-term bonds and notes issued by US states, towns and school districts, and it aims for income free of federal income tax while keeping its share price stable. It keeps its average weighted maturity at two years or less. Its 0.18% expense ratio is higher than the 0.07% charged by the larger iShares Short-Term National Muni Bond ETF (SUB).

• Over the year to Oct 27, 2026, JMST returned +2.5%, 5th of 8 among similar funds.
• Its 5-year annualized return was +2.5%.
• In the 2020 COVID crash it fell 2.4% and regained its old high 1 months after the low.
• Its worst full calendar year was 2022 (+0.1%); its best was 2023 (+3.6%).
• The deepest fall in its price history was 2.4% (Mar 9, 2020 to Mar 20, 2020), recovered by Apr 20, 2020.

As of Aug 31, 2026, the fund held 1,454 securities; the ten largest made up 6.3% of assets, and 30.72% sat in cash and money-market holdings.

The bonds mature in 2.7 years on average (weighted by size), with an average coupon of 4.48%.

• Over the three months to Aug 31, 2026, investors added a net $995.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.26%, +0.03%, +0.29%.

JMST does not track an index. JPMorgan's managers choose holdings based on their view of individual securities and market sectors. As a fundamental policy, at least 80% of assets go into municipal securities whose interest is exempt from federal income tax. The fund keeps its average weighted maturity at two years or less. That is the average time until its holdings repay, counting larger positions more heavily. A shorter maturity means the price reacts less when interest rates move. Holdings can pay fixed, floating or variable rates. Up to 100% can sit in short-term instruments such as variable rate demand notes, whose rates reset often.

The fund holds mainly investment-grade securities, rated BBB– or higher. Up to 10% may be junk bonds, and up to 25% may pay interest subject to the federal alternative minimum tax (AMT). More than 25% can come from projects in a single sector, such as housing or healthcare. Up to 20% may be held in money market funds or cash. It is not a money market fund, so its share price can move.

As of August 31, 2026, the fund held 1,542 positions, and the 10 largest made up only 6.3% of assets. The biggest were State of Washington (about 0.8%), State of Minnesota (about 0.7%) and Hempstead Union Free School District (about 0.6%). About 31% was in cash or cash-like holdings. Turnover was 53%. The fund handles creations and redemptions mostly in cash, which can produce taxable capital gains for shareholders.

• JMST charges 0.18% a year, versus an average of 0.16% for the similar funds below (5th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $18 in the first year and $230 over 10 years (assuming a 5% annual return).

It holds very short-term, mostly investment-grade municipal debt, and its declines have been small and short-lived.

JMST could serve as a low-volatility, tax-exempt place to hold money a retiree expects to spend within a few years. Its losses have been small. It fell 2.4% in March 2020 and recovered within about a month. It slipped 1.1% between January and April 2022 and took about 7.8 months to recover. Even in its weakest calendar year, 2022, it returned 0.14%. Someone drawing cash in a rough year would not have faced deep losses, but the fund launched after the 2008 crisis and has no record from it. As of October 27, 2026, its trailing 12-month yield was 2.57%, paid monthly. It costs 0.18% a year, which is $18 on $10,000 in the first year under the SEC's standard example. Its tax advantage adds little inside an IRA or 401(k). Past results don't predict future ones, and a plan should consider the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).