Jensen Quality Growth ETF (JGRW) seeks to provide long-term capital appreciation by investing in high-quality U.S. companies with sustainable competitive advantages and strong growth characteristics. This actively managed growth equity ETF focuses on businesses with consistent earnings growth, strong balance sheets, and durable market positions.
How It Works
JGRW employs an active management approach using Jensen Investment Management's proprietary quality growth methodology. The fund selects 25-40 concentrated holdings of large-cap U.S. companies that demonstrate consistent return on equity above 15%, predictable earnings growth, and strong competitive moats. Portfolio managers conduct fundamental analysis to identify businesses with sustainable growth drivers, typically holding positions for multiple years. The concentrated approach allows for meaningful position sizes in the highest-conviction opportunities.
Key Features
- Concentrated portfolio of 25-40 high-conviction positions enables meaningful impact from best ideas versus diversified index approaches
- Active management by Jensen Investment with 50+ year track record of quality growth investing and disciplined stock selection
- Recently launched in August 2024, offering investors access to institutional-quality active management in ETF wrapper format
Risks
- This ETF can lose significant value if growth stocks fall out of favor, as concentrated quality growth strategies underperformed during 2022's rising rate environment
- Active management risk means the fund could underperform passive growth ETFs if stock selection proves incorrect or market timing is poor
- Concentrated portfolio of 25-40 holdings creates higher volatility than diversified funds, with individual stock disappointments having outsized negative impact on returns
Who Should Own This
Best suited for growth-oriented investors with 5+ year time horizons and medium-to-high risk tolerance seeking active management exposure. Works as a satellite holding representing 10-20% of equity allocation for investors who want concentrated quality growth exposure beyond passive index funds. Appropriate for those comfortable with higher volatility in exchange for potential outperformance.