Fund Facts

• Ticker: JQTY
• Tracks: Jensen U.S. Quality Index, independently calculated and administered by VettaFi
• Screen: Minimum 15% return on equity, sustained for 10 consecutive fiscal years
• Qualifying universe: Fewer than 315 U.S. companies at launch
• Holdings: Top 100 qualifiers by free float market capitalization, modified-cap weighting
• Reconstituted and rebalanced semiannually
• Expense ratio: 0.25%

Company Website: https://www.jenseninvestment.com/jqty-etf/
LAKE OSWEGO, Ore. -- (Business Wire)

Jensen Investment Management ("Jensen"), a 100% independently-owned investment management firm, today announced the launch of its first passive exchange-traded fund, the Jensen U.S. Quality Index ETF (NYSE: JQTY). The Fund will track the Jensen U.S. Quality Index (JQUI).

JQTY draws on the longstanding research discipline that underpins the firm's Quality Growth strategies. To meet Jensen's highly selective definition of quality, companies must generate a return on equity (ROE) of at least 15% in each of the previous ten fiscal years. Out of thousands of publicly traded U.S. companies, fewer than 315 currently satisfy this standard, creating a narrow universe of businesses that have demonstrated consistent profitability through multiple market and economic environments.

From this universe, the Index selects the 100 largest qualifying U.S. companies based on free float market capitalization. Constituents are weighted using a modified market capitalization methodology designed to moderate concentration in the largest holdings while preserving meaningful exposure to market leaders. The approach is also intended to reduce overlap with other funds or strategies an investor may already hold. The Index is independently calculated and administered by VettaFi and is reconstituted and rebalanced semiannually.

"A single strong year doesn't tell you whether a business is built to last," said Allen Bond, Managing Director, Head of Research & Portfolio Manager at Jensen Investment Management. "Since our founding in 1988, we've identified companies that we believe can compound shareholder value across economic cycles, and once a company earns its place in our quality universe, it rarely leaves. That kind of durability is rare, and it's difficult to see in a single snapshot of a company's financials. JQTY is built on it."

"Investors have long known Jensen for a consistent, disciplined definition of quality, and JQTY extends that discipline to a new set of investors," said Richard Clark, Managing Director at Jensen Investment Management. "Those who prefer a rules-based approach now have a transparent, tax-efficient way to own the largest companies that meet our standard, alongside our actively managed Quality Growth strategy."

JQTY joins the Jensen Quality Growth ETF (NYSE: JGRW), the firm's actively managed ETF, which launched in August 2024. Both Funds draw from the Jensen Quality Universe.

About Jensen Investment Management

Founded in 1988, Jensen Investment Management is an independently-owned investment management firm headquartered in Lake Oswego, Oregon. For more than 35 years, the firm has applied a disciplined investment philosophy centered on identifying businesses we believe to be capable of generating consistently high returns on shareholder equity over extended periods. For more information, visit www.jenseninvestment.com.

Disclosures

Jensen Investment Management, Inc. is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training.

Please refer to the prospectus carefully for important information about the investment objectives, risks, charges and expenses. To obtain a prospectus containing this and other important information, please visit www.jenseninvestment.com/jqty-prospectus to view or download the prospectus online. Read the prospectus carefully before you invest.

Fund holdings and sector allocations are subject to change.

There are risks involved with investing including the possible loss of principal. The Fund is non-diversified and is permitted to invest a greater portion of its assets in the securities of a smaller number of issuers than would be permissible if it were a “diversified” fund and therefore, it may be more sensitive to market changes than a diversified fund. The Fund’s investment strategy requires that a company selected for investment by the Fund must have attained, among other criteria, a return on equity of at least 15 percent per year for each of the prior ten fiscal years as determined by the Adviser. Because of the relatively limited number of companies that have achieved this strong level of consistent, long-term business performance, the Fund at times is prohibited from investing in certain companies and sectors that may be experiencing a shorter-term period of robust earnings growth. The prices of growth stocks may be more sensitive to changes in current or expected earnings than the prices of other stocks and may be out of favor with investors at different periods of time.

For an Exchange Traded Fund (“ETF”), the market price return is calculated from the closing price as determined by the Fund’s listing exchange. If you trade your shares at another time, your return may differ. For the period from inception date to listing date, the NAV of the Fund is used as a proxy for the market price to calculate returns. ETFs trade like stocks, fluctuate in market value and may trade either at a premium or discount to their net asset value. ETF shares trade at market price and are not individually redeemable with the issuing fund, other than in large share amounts called creation units. ETFs are subject to risk similar to those of stocks, including those regarding short-selling and margin account maintenance. Brokerage commissions and expenses will reduce returns.

Market Capitalization: The total value of the issued shares of a publicly traded company; it is equal to the share price times the number of shares outstanding.

Jensen U.S. Quality Index: Measures the performance of the 100 largest U.S. companies that demonstrate consistently high ROE over the past 10 years, incorporating non-GAAP data and weighting constituents by the square root of company market capitalization. The Jensen U.S. Quality Index is owned and administered by VettaFi. VettaFi® is a registered mark of VettaFi LLC and has been licensed for use by Jensen. Indices are unmanaged and one cannot invest directly in an index.

Jensen U.S. Quality Index Exchanged Traded Fund is distributed by Foreside Fund Services LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260930267587/en/

Contacts:

Richard Clark
rclark@jenseninvestment.com

Media inquiries
pr@jenseninvestment.com

Source: Jensen Investment Management