Environmentally conscious investment has gained traction in recent years as the focus on climate change becomes more urgent and companies directly involved in combating climate change become more known. .
However, conventional investments such as alternative energy and solar stocks are not the only way for investors to gain exposure to the growing trend. Follow JPMorgan Climate Change Solutions ETF (PART-TIME) – it has been in operation since mid-December and holds a number of stocks that are generally unrelated to climate change, such as Microsoft, Apple, McDonald’s, Deere and Eaton.
Bryon Lake, head of Americas ETF distribution at JPMorgan Asset Management, sat down with CNBC”ETF Edge“to explain the strategy behind it.
“One of the things that we’re seeing is climate change affecting all sorts of different industries,” Lake said on Wednesday. “Not only do we need to move from natural resources to solar or renewable energy or things like that. That certainly plays an important role. It’s also in the construction sector. It’s also in the construction industry. agriculture. It’s also in health care.”
For example, the technology giant Microsoft has pledge that it will be negative for carbon by 2030 and by 2050, it will remove carbon from the environment it has released since it was founded nearly 50 years ago.
“That’s why we think this is a nuanced conversation, and you can’t just establish a simple rule of thumb to sift through some buzzwords that get a stock just right,” he said. number. By “making sure they deserve a spot in that portfolio and that they can make a difference there, that’s where we think active management really comes into play.”
It’s not just a pleasant investment, however – the growth opportunities in the space sector are huge, according to Lake.
“We estimate a $140 trillion investment in global energy and infrastructure is needed to achieve some of the net zero targets that many countries and regions are talking about by the end of the year,” he said. 2050. “These companies are the companies that are working on those solutions right now.”
Weakness in the broader market, especially in high-growth stocks, has weighed on this new ETF since its inception. The TEMP ETF has dropped 13% in the past month, almost double the loss due to S&P 500.
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