Could the weighting factors (1.03, 1.00, 0.97) be adjusted in the future to create larger differentials between company categories?
Yes, the current weighting factors are designed to be symbolic while maintaining close alignment with large-cap domestic equity benchmarks, but they could be adjusted in the future. The Index Advisory Committee periodically reviews the effectiveness of our weighting methodology, including the magnitude of the factors. If the Committee determines that stronger weighting differentials would better serve our advocacy goals without significantly impacting overall index performance characteristics, it could recommend adjustments. Any such changes would be implemented at quarterly rebalancing and communicated to investors in advance to maintain transparency about our investment approach.
How does JLens’ weighting approach differ from other values-based ETFs that may completely remove poorly performing companies?
Unlike some values-based ETFs that simply exclude companies not meeting their criteria, JLens employs a more nuanced approach with our symbolic weighting system. By slightly adjusting weights rather than completely removing companies with “Needs Improvement” scores, we maintain our shareholder advocacy position while still implementing a values-aligned signal in the portfolio construction. This approach allows us to continue engaging with these companies to encourage improvement, rather than losing our voice at the table. We believe this balanced methodology better serves Jewish communal interests over the long term by enabling ongoing advocacy while still reflecting our values in the investment process.
Why doesn’t JLens apply a more significant overweight or underweight to companies that perform well on its Jewish values scorecards?
After market capitalization weighting, JLens applies a small symbolic overweight (1.03), neutral weight (1.00) or underweight (0.97) to a company depending on its performance on JLens Jewish values scorecards. This score-based weighting is symbolic in nature and is intended to allow the TOV index to closely track the performance of a large-cap domestic equity benchmark. This slight weighting enables JLens to maintain a Jewish values alignment in the TOV index and is one of many tools JLens can use to push companies to improve their performance on JLens Jewish values scorecards.
Why does the TOV ETF hold a greater percentage of companies like Amazon and Meta than other companies in the portfolio?
The TOV ETF tracks the JLens 500 Jewish Advocacy U.S. Index which is weighted by market capitalization (the total value of a company’s outstanding shares). As any company’s market cap may increase or decrease over time, a smaller or larger percentage of the Index holdings will be made up of that company. JLens applies a small symbolic overweight (1.03), neutral weight (1.00) or underweight (0.97) to a company depending on its performance on JLens Jewish values scorecards.