Peak Financial Advisors Makes Strategic Pivot: Exits Fallen Angels for Active Bond ETF

The Move

Peak Financial Advisors made a notable portfolio shift in the fourth quarter, initiating a substantial allocation to the JPMorgan Active Bond ETF (NYSE: JBND) by purchasing 278,276 shares valued at approximately $15.05 million. This $15 million commitment now represents 6.6% of the firm’s 13F reportable assets under management as of December 31.

Why This Matters

What distinguishes this trade is not merely the capital deployment itself, but the concurrent exit from fallen angel exposure. This two-part maneuver signals a meaningful recalibration of the fund’s investment thesis—specifically, a deliberate rotation away from credit recovery plays toward a more balanced, actively managed core bond approach.

The Fallen Angel Exit Rationale

Fallen angel ETFs capitalize on securities that migrate downward from investment-grade to speculative-grade territory, betting on credit recovery and spread normalization. These positions typically deliver outsized returns early in economic cycles when credit conditions are improving. Peak’s decision to unwind this exposure suggests management believes the most advantageous phases of that trade cycle have already materialized. The easy gains, in other words, have likely been captured.

The Active Bond Pivot

By rotating into JBND, Peak Financial Advisors shifts focus from recovery-based beta toward a security selection and duration management framework. The JPMorgan Active Bond ETF maintains at least 80% of its portfolio in investment-grade bonds, targeting outperformance of the Bloomberg U.S. Aggregate Bond Index across three-to-five-year timeframes. The fund operates with an average duration of just over six years and maintains a yield profile positioned in the middle of the investment-grade spectrum—balancing income generation with downside protection.

Performance and Portfolio Context

JBND had accumulated an 8% one-year total return with a 4.4% yield as of mid-January. Since inception in late 2023, the fund has delivered outperformance relative to its benchmark on both absolute and risk-adjusted metrics, benefiting from active positioning across Treasuries, securitized credit, and corporate bonds.

This new position ranks fifth among Peak Financial Advisors’ top holdings:

• FLXR: $25.43 million (11.4% of AUM)
• MTBA: $18.88 million (8.5% of AUM)
• GLDM: $17.14 million (7.7% of AUM)
• CTA: $15.90 million (7.1% of AUM)
• JBND: $15.05 million (6.6% of AUM) ← New position

What This Signals for Investors

The simultaneous execution—exiting fallen angel exposure while deploying capital into active bond management—reflects a sophisticated reassessment of market opportunity. Rather than chasing credit recovery trades that may have peaked, Peak Financial Advisors is repositioning toward a strategy emphasizing tactical allocation, security selection, and portfolio resilience. For income-focused investors, this transition underscores the value of flexibility and timely positioning adjustments in fixed income allocations.