JPMorgan US Research Enhanced Index Equity SRI Paris Aligned UCITS ETF

Issuer: JPMorgan ETF

Asset Class: Equity

TER: 20bps

Trading Currency: GBX

Pays Income: False

Listing Date: 17 Aug 2023

Ticker: JSUE

ISIN: IE00069JGT58

This fund offers exposure to a portfolio of U.S. large and mid-capitalization companies, selected and weighted to align with both Socially Responsible Investing (SRI) principles and the ambitious climate goals of the Paris Agreement. The strategy is designed for investors seeking to integrate strong environmental, social, and governance (ESG) standards into their core U.S. equity allocation. By adhering to a Paris Aligned Benchmark (PAB) framework, the portfolio is constructed to significantly reduce its carbon footprint compared to the broader market and is on a clear decarbonization trajectory.

The investment process starts with a broad universe of U.S. stocks and applies a rigorous screening methodology. It excludes companies involved in controversial activities such as controversial weapons, tobacco, thermal coal, and oil & gas. Furthermore, the fund employs a 'best-in-class' approach, overweighting companies that demonstrate strong ESG profiles relative to their industry peers. The PAB compliance ensures that the portfolio not only has a lower carbon intensity today but is also positioned to align with the long-term goal of limiting global warming to 1.5°C, making it suitable for climate-conscious investors.

The resulting portfolio provides diversified exposure across various sectors of the U.S. economy while maintaining a distinct sustainability tilt. It aims to capture the long-term growth potential of leading American companies that are proactively managing their ESG risks and opportunities. For investors, this fund can serve as a core holding for U.S. equity exposure, offering a systematic way to invest in a more sustainable future without sacrificing the potential for competitive market returns. The accumulating share class structure means that any dividends are automatically reinvested, facilitating long-term capital compounding.