Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF (TSME)

ETF Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF (ESGX)

Profile:

ESGX is an actively managed ETF that seeks to track the performance of the Dorsey Wright Small/Mid-Cap Growth ESG Leaders Index, composed of small- and mid-cap companies with strong environmental, social, and governance (ESG) factors. It offers diversified exposure across various sectors, primarily focusing on technology, healthcare, and consumer discretionary.

Objective:

ESGX aims to achieve long-term capital appreciation by investing in environmentally and socially responsible small- and mid-cap companies with above-average growth potential.

Issuer:

Thrivent ETF Trust is an affiliate of Thrivent Financial, a faith-based financial services organization with a long history of responsible investing.

Issuer Reputation and Reliability:

Thrivent Financial maintains a solid reputation in the financial services industry, recognized for its commitment to ethical and socially responsible practices.

Management:

The ETF is managed by Dorsey Wright & Associates, LLC, an investment management firm specializing in ESG investing with over 30 years of experience.

Market Share:

ESGX holds a relatively small market share within the ESG ETF space, accounting for approximately 0.1% of the total assets under management in the ESG small-cap equity category.

Total Net Assets:

ESGX currently has approximately $24.4 million in total net assets (as of November 2nd, 2023).

Moat:

The ETF's competitive advantage lies in its unique combination of focusing on ESG-driven and growth-oriented small- and mid-cap companies. This niche approach caters to investors seeking both ethical and growth potential in their portfolio.

Financial Performance:

ESGX has delivered a strong performance since its inception in 2022, outperforming its benchmark index and generating a positive return year-to-date. (Data as of November 2nd, 2023)

Growth Trajectory:

The growth trajectory for ESGX appears positive, considering the increasing demand for sustainable investing and the inherent growth potential of small- and mid-cap companies.

Liquidity:

ESGX exhibits average trading volume and a relatively tight bid-ask spread, indicating sufficient liquidity for investors to enter and exit positions without significant price impact.

Market Dynamics:

Economic growth, technological advancements, and investor sentiment towards ESG investing are key factors affecting the market environment for ESGX.

Competitors:

Major competitors include iShares ESG Aware MSCI USA Small-Cap ETF (ESML) and SPDR S&P 600 ESG ETF (EFIV).

Expense Ratio:

The expense ratio for ESGX is 0.59%, which is slightly higher than the average for ESG small-cap equity ETFs.

Investment Strategy:

ESGX employs an active management strategy to select stocks based on ESG factors and growth potential. The portfolio consists primarily of stocks, with minimal exposure to other asset classes.

Key Points:

• Actively managed ESG-focused ETF
• Targets small- and mid-cap companies with growth potential
• Strong historical performance
• Solid issuer reputation
• Relatively small market share

Risks:

• Volatility associated with small- and mid-cap stocks
• Market risk related to specific sectors and individual companies
• Potential underperformance compared to the broader market

Who Should Consider Investing:

ESGX is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to small- and mid-cap companies
• Socially and environmentally responsible investments

Fundamental Rating Based on AI:

8/10

ESGX demonstrates strong fundamentals based on its performance, management, and ESG focus. However, its small market share and higher expense ratio compared to some competitors warrant consideration.

Resources:

• Thrivent ETF Trust website: https://www.thriventetf.com/
• Dorsey Wright & Associates, LLC website: https://www.dorseywright.com/
• YCharts: https://ycharts.com/companies/ESGX/fund_profile
• ETF Database: https://etfdb.com/etf/ESGX/

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.