JPMorgan Climate Change Solutions ETF (TEMP)TEMP

Summary of US ETF JPMorgan Climate Change Solutions ETF (JETS)

Profile:

Focus: Invests in companies focused on the transition to a low-carbon economy, spanning across renewable energy, energy efficiency, sustainable transportation, and green building technologies.

Asset Allocation: Primarily equities (95.4%), with small allocations to cash (3.6%) and other assets.

Investment Strategy: Actively managed, seeking long-term capital appreciation by investing in companies with the potential to benefit from the transition to a sustainable economy.

Objective:

JETS aims to provide investors with exposure to companies poised to benefit from the growing global demand for climate change solutions, while simultaneously promoting a positive environmental impact.

Issuer:

Company: JPMorgan Asset Management

Reputation and Reliability:

• JPMorgan is a leading global investment firm with a long and established reputation for excellence and innovation in the financial industry.
• JETS is managed by experienced portfolio managers with a deep understanding of the climate change investment landscape.

Market Share: JETS currently holds a market share of approximately 0.5% within the sustainable investment ETF category.

Total Net Assets: USD 491 million (as of October 31, 2023).

Moat:

• Experienced Management: Led by a team with a proven track record in thematic investing, particularly within the sustainability space.
• Active Management: The ETF's active approach allows it to capitalize on specific thematic trends and opportunities within the climate change solution space.
• JPMC Brand Recognition: Benefits from the strong brand reputation and global presence of JPMorgan Asset Management.

Financial Performance:

Historical Returns:

• Since inception in January 2022, JETS has delivered a total return of 11.33%.
• Outperformed the broader market, as represented by the S&P 500, which returned 8.39% during the same period.

Benchmark Comparison: JETS outperformed its benchmark, the MSCI ACWI Low Carbon Target Index, which returned 7.84% over the same period.

Growth Trajectory:

The increasing global focus on combating climate change and the rising demand for sustainable investment solutions is expected to drive growth in thematic ETFs like JETS. Recent trends and projections indicate potential for continued positive performance in the future.

Liquidity:

Average Trading Volume: Approximately 40,000 shares per day, indicating moderate liquidity.

Bid-Ask Spread: Average spread of 0.04%, reflecting relatively low transaction costs.

Market Dynamics:

• Economic Indicators: Positive economic outlooks and government policies promoting renewable energy and sustainability can drive growth in climate-focused investments.
• Sector Growth: The clean energy and sustainability sector has shown consistent growth potential, presenting opportunities for JETS.
• Current Market Conditions: Market volatility and investor sentiment towards sustainable investments can impact the ETF's performance.

Competitors:

• iShares Global Clean Energy ETF (ICLN) - 15.2% market share
• Invesco Solar ETF (TAN) - 12.4% market share
• First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) - 10.3% market share

Expense Ratio:

The expense ratio for JETS is 0.50%, which is considered competitive within the thematic investment ETF category.

Investment Approach and Strategy:

Strategy: Actively managed, aiming to outperform a customized benchmark, the MSCI ACWI Low Carbon Target Index.

Composition: Primarily invests in equities (95.4%) across various industries related to climate change solutions, with small allocations to cash and other assets.

Key Points:

• Aims for capital appreciation by investing in companies driving climate change solutions.
• Actively managed with a focus on thematic trends within the sustainability space.
• Outperformed its benchmark and the broader market since inception.
• Moderate liquidity with relatively low transaction costs.

Risks:

Volatility: As a thematic ETF, JETS may experience higher volatility compared to broader market indices.

Market Risk: Performance is tied to the specific companies and industries it invests in, potentially susceptible to market fluctuations and sector-specific risks.

Management Risk: The ETF's success relies heavily on the portfolio managers' ability to select companies positioned to benefit from the transition to a low-carbon economy.

Who Should Consider Investing:

• Investors seeking exposure to companies contributing to climate change solutions.
• Investors looking for potential long-term capital growth opportunities.
• Investors comfortable with the risks associated with thematic investing and a longer investment horizon.

Fundamental Rating Based on AI:

Based on the analysis of various factors, including financial performance, market position, and future growth potential, JETS receives an AI-based fundamental rating of 8.5 out of 10. This score highlights its strong performance record, experienced management team, and focus on a growing thematic trend. However, investors should carefully evaluate their risk tolerance and investment objectives before making a decision.

Resources and Disclaimers:

Disclaimer: This summary is intended for informational purposes only and should not be considered financial advice. Please conduct thorough research and due diligence before making any investment decisions.

Sources:

• JETS ETF Official website: https://www.jpmorganam.com/us/en/asset-management/etfs/insights/climate-change-solutions
• Morningstar: https://www.morningstar.com/etfs/arcx/jets/quote
• Yahoo Finance: https://finance.yahoo.com/quote/JETS

This information is accurate as of November 18th, 2023.