JPMorgan Launches 3 Socially Conscious ETFs

JPMorgan’s Asset Management arm added three actively managed exchange-traded funds on Thursday focused on sustainable and socially conscious investing.  

The three funds include the following:  

• JPMorgan Sustainable Consumption ETF (CIRC) 
• JPMorgan Social Advancement ETF (UPWD) 
• JPMorgan Sustainable Infrastructure ETF (BLLD) 

Each fund lists on the Nasdaq and has an expense ratio of 0.49%. 

CIRC will focus on companies that help preserve natural resources and improve resource use or reduce waste, while BLLD will invest in companies developing “sustainable infrastructure to facilitate a sustainable and inclusive economy,” according to a company statement. UPWD will invest in companies responsible for facilitating economic empowerment for people across the socioeconomic spectrum.  

“Much of the rise in demand for sustainable ETFs have been met by passive strategies, which often don’t provide the nuance necessary in this complex and fast-moving space of the market,” Bryon Lake, global head of ETF solutions at JPAM, said in the statement. “We believe that these three active sustainable ETFs provide additional solutions to investors who are seeking long-term capital growth consistent with sustainable investment themes.”  

The three funds are the latest installment in the bank’s foray into active sustainable thematic ETFs, joining the JPMorgan Climate Change Solutions ETF (TEMP), which debuted in December 2021.  

But this latest launch of the banking behemoth’s new funds comes at a precarious time for environmental, social and governance funds. Data from Bloomberg shows ESG investing has fallen significantly in the past year. While ESG-labeled funds brought in $36 billion last year alone, data for year-to-date 2022 show they have only managed to pull in $4.6 billion.  

“We are seeing strong demand from clients for active sustainable investing solutions that give them access to specific companies and sectors that are driving major global trends,” George Gatch, chief executive officer of JPAM, said in the statement.  

Susquehanna Securities will serve as the designated liquidity provider for all three ETFs.  

Contact Shubham Saharan at [email protected]