Jensen Launches JQTY With a 10-Year Profitability Screen

Jensen Investment Management has launched the Jensen U.S. Quality Index ETF (JQTY) on the NYSE, offering rules-based exposure to highly profitable U.S. companies. To qualify for the underlying index, a company must have generated return on equity of at least 15% in each of the past 10 consecutive fiscal years, a hurdle Jensen says fewer than 315 U.S. companies currently meet. From that universe, the index selects the 100 largest companies by market capitalization and applies a modified market-cap weighting designed to limit concentration in the biggest names. The index is reconstituted and rebalanced twice yearly. JQTY brings the profitability discipline used across Jensen’s active strategies into a passive ETF format, giving investors a systematic way to access companies with long records of persistent profitability and strong business performance.