Enhanced Vanilla


JPMorgan lists enhanced plain vanilla ETF

JP Morgan is listing three “research enhanced” active ESG ETFs on the major European stock exchanges over the coming weeks. The new listings are:

  • JPM Europe Research Enhanced Index Equity (ESG) UCITS ETF (JREE)
  • JPM US Research Enhanced Index Equity (ESG) UCITS ETF (JREU)
  • JPM Global Research Enhanced Index Equity (ESG) UCITS ETF (JREG)

The new funds will track the MSCI Europe, S&P 500 and MSCI World indexes. But will “enhance” these indexes by building in the research of JPMAM’s top stock pickers and analysts.

JPMAM’s research team will take small overweight positions in names they find attractive and small underweights in the names they find less attractive. “As a result, the portfolios maintain index characteristics while seeking incremental positive excess returns, compounded over time,” JPMAM said in a press release.

The funds also include an ESG screen that excludes certain sectors, like controversial weapons and tobacco.

The three funds will charge 0.25%.

Other news:

State Street claims fearless girl is working

State Street’s “fearless girl” campaign has worked and more companies are putting women on their boards of a result of their efforts, State Street has claimed in press release.

In 2017, State Street launched a diversity awareness campaign to coincide with the launch of the SPDR SSGA Gender Diversity Index ETF (SHE). As part of the campaign, State Street has gone through the painstaking effort of identifying every publicly traded company in the major rich countries that have no women on their boards. State Street has indicated that it will militate for diversity by voting against boards that fail to install women.

“[The campaign] has resulted in a decrease in the percentage of companies in the Russell 3000 Index without a female director from 24 percent at the end of 2016 to 16 percent at June 2018,” State Street said.

“During the 2017 proxy season State Street Global Advisors voted against 512 companies for failing to take action regarding their board gender diversity, and in the first half of 2018, through several country proxy voting seasons, voted against 581 companies.”

State Street appoints new EMEA top dog

State Street has tapped Matteo Andreetto to be the new boss of the SPDR ETF business for EMEA. Andreetto joins from STOXX, part of Deutsche Börse Group, and will report to Rory Tobin, global head of SPDR ETF business. Based in London, Andreetto will be responsible for developing, leading and executing all aspects of SPDR’s ETF business strategy.