The asset management unit of JPMorgan Chase & Co. has launched two new exchange-traded funds tied to Paris-aligned benchmarks that meet strict EU rules for investing in line with the goal of limiting global warming to 1.5C.
JPMorgan Asset Management said one of the funds will have a global focus (Ticker: JSEG) while the other will look at the US (Ticker: JSEU), according to an emailed statement. Both ETFs live up to EU rules for its so-called Article 9 classification under the EU’s Sustainable Finance Disclosure Regulation.
The new funds are making their debut as Europe’s market for ESG ETFs looks poised for a rebound. Investor attitudes toward European ESG ETFs have remained positive in 2023, contrasting with recent steep declines globally and in the US, according to Bloomberg Intelligence. The JPMorgan ETFs feed into the asset manager’s $7 billion Research Enhanced Index equity ETF platform, the firm said.
European ESG ETF Sentiment
“Sustainable ETFs have seen tremendous growth over the past couple of years,” JPMorgan said in the statement. “In the past two years alone, sustainable ETFs have captured over half of ETF flows in Europe.”
The asset manager said it worked with MSCI to create indexes. The products start with 50% less greenhouse gas intensity than the parent universe and a trajectory to decarbonize by 7% on average, year over year. The global portfolio will have between 300-350 holdings while the US strategy targets 150-200 holdings.
