JP Morgan AM launches ‘carbon transition’ ETF

JP Morgan Asset Management (JPMAM) has launched a low carbon-intensity ETF to track global equities using one of its own indices.

The JPMorgan Carbon Transition Global Equity Ucits ETF aims for a lower tracking error compared to the MSCI World Index but tracks the JPMorgan Asset Management Carbon Transition Global Equity Index.

The firm’s own index achieves a “meaningful reduction” in carbon intensity without relying on exclusions, said the firm, saying it was at least 30% less than the MSCI World.

The ETF is listed on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra and has a total expense ratio of 19 basis points.

Jennifer Wu, global head of sustainable investing at the firm, said: “Investing in carbon transition-aware strategies needs to start now. Differences are emerging, between the potential winners and losers in the low carbon transition, and by acting early, before climate risks and opportunities are fully priced in, investors can capture potentially significant returns as prices continue to adjust.”

© 2020 funds europe

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