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ESG investing, climate change, stocks: JPMorgan on environmental ETF


In the past few years, environmental-conscious investing has grown in popularity as climate change awareness grows and more companies are involved in fighting it.

Common investments like alternative energy or solar stocks can also be a way to get exposure to this growing trend. Let’s take a look at the JPMorgan Climate Change Solutions ETF (TEMP) — it has been active since mid-December holds several stocks not typically associated with climate change, such as Microsoft, Apple, McDonald’s, Deere and Eaton.

Bryon lake, Americas ETF Distribution Head at JPMorgan Asset Management, spoke with CNBC’s “ETF EdgeTo explain its strategy, click ”  

Lake spoke Wednesday, “One thing that we have observed is that climate changes affect all industries.” It’s more than just about moving from renewables and natural resources. It certainly is a large part. However, it is also used in construction. It can be used in agriculture. It is also used in the health care industry.

Microsoft is a tech company that has been around since 1995. pledged that it will be carbon negativeIt will eliminate all carbon emissions from the environment by 2030, and 2050 by the time it is 50 years old.

He stated that “that’s why this conversation is so nuanced and that you cannot just put together a rule that screens stocks for certain buzzwords to help them get in an index.” We believe active management comes in when you “make sure they deserve a spot on that portfolio, and can affect change there.

It’s not just a feel-good investment, though — the opportunity for growth in the space is huge, according to Lake.

According to him, “We think there is a need for $140 trillion to invest in energy and global infrastructure to achieve some of those net-zero goals that many regions and countries are talking about by 2050.” “These are companies who are currently working towards these solutions.”

The new ETF is under increasing pressure since its launch due to weakness in the wider market and high-growth stock markets. The TEMP ETF fell 13% over the last month, almost double its losses in March. S&P 500.

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