Key Takeaways
- • Core plus strategies add a smaller allocation of higher-risk, higher-potential-return assets to a stable, investment-grade core portfolio, according to Investopedia.
- • The strategy is most common in fixed-income funds but can also be applied to equity portfolios.
- • The JPMorgan Core Plus Bond Fund (ONIAX) held $25.78 billion in assets as of June 29, 2026, and can allocate up to 30% of assets to below-investment-grade securities and 25% to foreign securities.
- • The JPMorgan U.S. Large Cap Core Plus Fund (JLCAX), with $3.66 billion in assets as of June 29, 2026, can sell short equities to seek returns above its S&P 500 benchmark.
- • The American Century Core Plus Fund (ACCNX) held $384.99 million as of May 31, 2026, and pairs intermediate investment-grade corporates with lower-grade "junk bonds" to maximize income.
Summary
Core plus is an investment strategy that builds on a portfolio's stable core holdings by layering in flexibility and diversification. Investopedia describes the approach as pairing traditional, lower-risk assets with higher-risk, potentially higher-return investments in an effort to enhance yield without sacrificing the portfolio's foundational stability. The core allocation is generally held over the long term, while managers allocate a smaller portion to riskier investments with shorter horizons to pursue additional returns.
The strategy is primarily associated with fixed-income funds, where the supplemental holdings are typically also fixed-income securities that carry more risk and potentially more reward than the core. According to the article, some core plus bond funds invest mainly in investment-grade bonds while permitting up to 30% of assets in below-investment-grade securities. The strategy can also be applied to equity portfolios.
Investopedia highlights three funds as examples. The JPMorgan Core Plus Bond Fund (ONIAX) invests primarily in investment-grade bonds and can tactically hold up to 30% of assets in below-investment-grade securities and 25% in foreign securities. It had $25.78 billion in total assets as of June 29, 2026, a $1,000 minimum investment, and a gross annual expense ratio of 0.90%. The American Century Core Plus Fund (ACCNX) focuses on high-quality, intermediate corporate bonds with five-to-ten-year maturities and also invests outside the core in lower-grade bonds. Its investor shares require a $2,500 initial investment, carry a total expense ratio of 0.55%, and had assets of $384.99 million as of May 31, 2026. The JPMorgan U.S. Large Cap Core Plus Fund (JLCAX) is the article's equity example. It builds its core around U.S. large-cap companies it considers undervalued and can sell short equities to seek returns above the S&P 500 Index. The fund had $3.66 billion in assets as of June 29, 2026, a $1,000 minimum investment, and a gross expense ratio of 1.94%.
The article notes that core plus funds carry both risks and rewards and recommends a long-term perspective. Figures are as cited by Investopedia from J.P. Morgan Asset Management and American Century Investments fact sheets.
The strategy is primarily associated with fixed-income funds, where the supplemental holdings are typically also fixed-income securities that carry more risk and potentially more reward than the core. According to the article, some core plus bond funds invest mainly in investment-grade bonds while permitting up to 30% of assets in below-investment-grade securities. The strategy can also be applied to equity portfolios.
Investopedia highlights three funds as examples. The JPMorgan Core Plus Bond Fund (ONIAX) invests primarily in investment-grade bonds and can tactically hold up to 30% of assets in below-investment-grade securities and 25% in foreign securities. It had $25.78 billion in total assets as of June 29, 2026, a $1,000 minimum investment, and a gross annual expense ratio of 0.90%. The American Century Core Plus Fund (ACCNX) focuses on high-quality, intermediate corporate bonds with five-to-ten-year maturities and also invests outside the core in lower-grade bonds. Its investor shares require a $2,500 initial investment, carry a total expense ratio of 0.55%, and had assets of $384.99 million as of May 31, 2026. The JPMorgan U.S. Large Cap Core Plus Fund (JLCAX) is the article's equity example. It builds its core around U.S. large-cap companies it considers undervalued and can sell short equities to seek returns above the S&P 500 Index. The fund had $3.66 billion in assets as of June 29, 2026, a $1,000 minimum investment, and a gross expense ratio of 1.94%.
The article notes that core plus funds carry both risks and rewards and recommends a long-term perspective. Figures are as cited by Investopedia from J.P. Morgan Asset Management and American Century Investments fact sheets.
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