Jensen Investment Management Active, an equity investment firm based in Lake Oswego, Ore., has launched its first exchange-traded fund, which will be actively managed and provide investors with access to the firm’s growth strategy.
The Jensen Quality Growth ETF (JGRW), which began trading today, is a "high-conviction" U.S. large-cap ETF with a growth tilt, the company said. It gives investors access to Jensen's Quality Growth Strategy, which the firm described as a convenient, tax-efficient vehicle.
Using a bottom-up fundamental analysis, the ETF focuses on quality companies that have demonstrated both consistency in their performance and resilience over time, the firm said. Maintaining only 25 to 30 stocks, the ETF will offer a highly concentrated portfolio, the firm said.
To qualify as a stock the ETF will invest in, it must first demonstrate an equity return of at least 15% for more than 10 consecutive years, the company said in a press release. From there it must get through an annual selection process that process reduces the number of publicly traded U.S. and international companies to ensure they meet the firm’s equity return standard, the firm said.
Jensen’s investment team will manage the ETF and is responsible for identifying the 40 to 50 equities that have the strongest competitive advantages, according to the firm.
“This ETF is designed for long-term investors seeking capital appreciation with less risk than the S&P 500 over full market cycles,” said Richard Clark, head of business development at Jensen Investment Management, in a prepared statement. “Our experienced investment team is committed to delivering a conservative investment approach that aligns with our clients’ long-term goals.”
The ETF has a 0.57% management fee, according to the firm.