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JPMorgan Expands Green ETF Suite With Climate Change Fund

(Bloomberg) —

JPMorgan Chase & Co.’s asset management arm is launching its first actively managed exchange-traded fund that focuses on sustainability.

The JPMorgan Climate Change Solutions ETF (ticker TEMP) will seek to invest in companies that are developing solutions to address climate change, including those producing less carbon-intensive forms of energy, agriculture, and transportation.

Francesco Conte, Yazann Romahi, and Sara Bellenda will manage the fund, which will screen potential companies using a combination of AI and JPMorgan’s fundamental research. 

“Investors we talk to are increasingly looking for investment products that will provide meaningful investment opportunities across a range of industries and geographies,” Bryon Lake, global head of ETF solutions at JPMorgan Asset Management, said in a statement.

TEMP will be JPMorgan’s second sustainability-focused ETF. The firm launched its Carbon Transition Equity ETF (JCTR) a year ago and it has jumped 30% since its inception. 

“One of the things that’s most important to us is understanding what is it the clients are trying to accomplish within their portfolios,” Lake said in an interview. “It’s become clear that one of the things that they want is to get exposure to more thematic-oriented strategies.”

U.S. companies will make up about half of the fund with European and emerging markets companies taking up the rest. The fund will charge a 0.49 percentage point expense ratio. 

A version of the strategy is also available in Europe, JPMorgan Asset Management said in a separate release on Tuesday. It’s launching there as a so-called Article 9 product, which requires fund managers to prioritize sustainability above all else, as defined under the European Union’s Sustainable Finance Disclosure Regulation.

© 2022 Bloomberg L.P.

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