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Jensen Expands ETF Lineup With New Quality Offering

BY | ETF Database
7:37 am ET 09/30/26 | 17 VIEWS
On Wednesday, September 30, 2026, Jensen Investment Management launched the Jensen U.S. Quality Index ETF (JQTY).Key Takeaways: Jensen Investment Management has expanded its ETF lineup with the debut of the Jensen U.S. Quality Index ETF (JQTY). This fund uses an index that screens for companies with an ROE of 15% or higher across the last 10 fiscal years, then picks and weighs stocks based on free-float market cap. Given that quality stocks are poised to perform well in this macroeconomic environment, JQTY may offer a potent position in a variety of different portfolios. JQTY operates with a net expense ratio of 25 basis points. The fund’s goal is to track the results of the Jensen U.S. Quality Index. Of course, it’s important for advisors and investors to understand how the Jensen index works. This index begins by taking the VettaFi US Equity 3000 Index — a barometer of the 3,000 largest U.S. stocks — and screening them based on return on equity (ROE). To elaborate, each company in this index needs to offer an ROE of 15% or higher across the last 10 fiscal years. From there, the index picks the 100 largest companies, based upon free-float market cap. “Many quality strategies evaluate companies using a snapshot of current financial characteristics,” noted Allen Bond, managing director and head of research & portfolio manager at Jensen. “Our philosophy has always been that quality is demonstrated over time. By requiring companies to generate at least a 15% return on equity for ten consecutive years, the Jensen U.S. Quality Index translates that 35-year investment philosophy into a distinctive, transparent rules-based benchmark.” See More: The ‘Funflation’ Effect: What It May Mean for Retail StocksAn Opportunity for Quality FundsBroadly speaking, JQTY will be looking to invest most, if not all, of its assets in the securities within the index. As such, true to its name, the fund will lean heavily into quality securities. With the Federal Reserve hiking rates for the first time in three years and inflation remaining persistent, quality strategies like JQTY will offer a strong use case. Quality companies tend to perform well amid uncertainty due to their higher ROE, lower historical debt, and increased resilience. “As a former mutual fund analyst, I’m very familiar with the Jensen approach to quality investing,” said Todd Rosenbluth, head of research at VettaFi. “I am very excited that the firm has brought its expertise to the ETF market.” JQTY is the second ETF that Jensen has delivered to the market. The first fund within Jensen’s lineup was the Jensen Quality Growth ETF (JGRW C+). JGRW’s NAV has grown by 2.03% over the past month, as of August 31, 2026. For more news, information, and analysis, visit the Thematic Investing Content Hub. VettaFi LLC (“VettaFi”) is the index provider for JQTY , for which it receives an index licensing fee. However, JQTY is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of JQTY.

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