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JPMorgan Launches Carbon Transition ETF: Portfolio Products

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J.P. Morgan Asset Management has introduced the JPMorgan Carbon Transition U.S. Equity ETF (JCTR, with a 0.15% net expense ratio) on the New York Stock Exchange.

The new, sustainable exchange-traded fund offers core exposure to U.S. equities and is out to offer investors at least 30% less carbon intensity than the Russell 1000 index, and a year-on-year de-carbonization target of at least 7%. That is in line with the EU Climate Transition Benchmark framework for sustainable investing, the firm says.

“JCTR will use a forward-looking proprietary research framework to identify which companies, across all sectors, may be best positioned to benefit from the transition to a low carbon economy,” according to the firm.

JCTR will track the JPMorgan Asset Management Carbon Transition U.S. Equity Index that was built to achieve a meaningful reduction in carbon intensity without relying on exclusions or sector deviations, it says.

Including JCTR, J.P. Morgan Asset Management’s U.S. ETF suite now features 32 product offerings with more than $40 billion in assets under management, it says.

TrimTabs Adds 2 New ETFs

TrimTabs Asset Management has launched two new ETFs on the Cboe BZX Exchange: the TrimTabs Donoghue Forlines Risk Managed Innovation ETF (DFNV, 0.69%) and TrimTabs Donoghue Forlines Tactical High Yield ETF (DFHY, 0.95%).

The funds have been launched in partnership with Donoghue Forlines, a tactical investment firm that specializes in risk-managed portfolio solutions.

DFNV aims to track the performance of the TrimTabs Donoghue Forlines Risk Managed Free Cash Flow Innovation Index. The rules-based Index seeks to provide risk-managed exposure to U.S. publicly traded companies with strong free cash flow and strong research and development spending, TrimTabs says.

DFHY is designed to track the performance of the TrimTabs Donoghue Forlines Tactical High Yield Index. That index also follows a rules-based strategy that employs a tactical overlay driven by a technical signal to determine a bullish or defensive posture.

“Should market conditions warrant defensive positioning, the tactical overlay” of DFHY “will trigger a move that will shift 80% of the portfolio into intermediate-term U.S. Treasury ETFs,” the firm explains. “When a more bullish posture is indicated, the Index and Fund will shift to positions in High Yield Fixed Income ETFs.”

The two new funds join the existing family of TrimTabs ETFs that were recently renamed to better reflect the funds’ focus on free cash flow. The older funds are now known as: the TrimTabs US Free Cash Flow Quality ETF (TTAC) and TrimTabs International Free Cash Flow Quality ETF (TTAI).

Adasina Lists Social Justice ETF

Black- and women-owned investment and financial activism firm Adasina Social Capital has launched the Adasina Social Justice All Cap Global ETF (JSTC, 0.89%) on the NYSE.

The new ETF was developed in partnership with Tidal ETF Services and is a highly diversified, global, all-cap fund composed of common and preferred stocks of domestic and foreign issuers, including those in emerging markets. Index constituents include large-, mid-, and small-capitalization companies.

JSTC includes global companies whose business practices are aligned with Adasina Social Justice Investment Criteria and “excludes companies whose practices impede the advancement of equitable systems,” Adasina says.

The ETF’s investment criteria is a data-driven set of investment standards determined by working closely with social justice movements to identify issues “most directly affecting their communities — with a particular focus on racial, gender, economic, and climate justice,” according to Adasina.

The ETF tracks the Adasina Social Justice Index (JUSTICE), which is screened using the Social Justice Investment Criteria and traditional environmental, social and governance (ESG) metrics. The index includes a global universe of public companies whose practices are in alignment with social justice values.

Avantis Launches Municipal Bond ETF

Avantis Investors has launched its first low-cost, broadly diversified municipal bond ETF: Avantis Core Municipal Fixed Income (AVMU).

AVMU joins Avantis Core Fixed Income (AVIG) and Avantis Short-Term Fixed Income (AVSF) in the recently launched brand’s fixed income ETF lineup.  All three strategies have a 0.15% expense ratio, are listed on the NYSE, and are designed to seamlessly augment investors’ asset allocation, the firm says.

AVMU is expected to soon be offered as a mutual fund with an Institutional Class at the same total annual operating expense ratio.

The fund invests mainly in investment-grade municipal debt obligations from a diverse group of issuers. Its investment process uses an analytical framework that the firm says includes an assessment of securities’ expected income and capital appreciation to seek securities with high expected returns.

 — Check out last week’s portfolio product roundup hereVanEck Adds 2 Corporate Bond ETFs: Portfolio Products


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