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

Overview

The Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF focuses on investing in small and mid-capitalization companies that meet specific environmental, social, and governance (ESG) criteria. The ETF employs a growth-oriented strategy, aiming for capital appreciation by selecting companies that demonstrate strong ESG integration and potential for long-term growth.

Reputation and Reliability

Thrivent Financial for Lutherans, the sponsor, is a Fortune 500 company with a strong reputation for financial strength and a commitment to serving its members. Thrivent Asset Management, the investment advisor, leverages this foundation.

Management Expertise

The management team at Thrivent Asset Management has experience in actively managing portfolios, including those with ESG considerations. They employ a research-driven approach to identify promising small and mid-cap companies.

Goal

The primary investment goal is to achieve long-term capital growth by investing in a diversified portfolio of small and mid-capitalization U.S. equity securities that adhere to ESG principles.

Investment Approach and Strategy

Strategy: The ETF does not explicitly track a specific index. Instead, it employs an actively managed strategy focused on identifying undervalued or high-potential ESG-compliant companies within the small and mid-cap universe.

Composition The ETF primarily holds equities (stocks) of U.S. small and mid-capitalization companies. The selection process emphasizes companies with strong ESG scores and positive impact potential.

Market Share: Specific market share data for this individual ETF within the broader ESG small-mid cap ETF market is not publicly detailed in a readily quantifiable format. However, it operates within a growing but still relatively niche segment.

Total Net Assets (AUM): Information on the exact Total Net Assets (AUM) for the Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF is subject to change and should be verified with real-time financial data sources. As of recent available data, it is a relatively smaller AUM compared to larger, more established ETFs in the ESG space.

Key Competitors

• iShares ESG MSCI USA Small-Cap ETF (ESGS)
• Vanguard ESG U.S. Stock ETF (ESGV)
• SPDR S&P Kensho Smart Materials ETF (XMPT)

Competitive Landscape

The competitive landscape for ESG ETFs, particularly in the small and mid-cap segment, is intensifying. Larger asset managers like iShares and Vanguard offer broad ESG exposure, often with lower expense ratios, posing a challenge. Thrivent's advantage lies in its potentially more concentrated, actively managed approach focusing on specific ESG integration and its established reputation within its member base. However, it may face challenges in attracting assets against passive, broad-market ESG ETFs with lower costs and greater liquidity.

Historical Performance: Historical performance data for the Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF (TGAA) varies over different periods. Investors should consult real-time financial data platforms for the most up-to-date performance figures, including 1-year, 3-year, and 5-year returns, as well as inception-to-date performance. Performance is influenced by market conditions and the specific ESG criteria applied.

Benchmark Comparison: As an actively managed ETF, it may not have a precisely defined single index benchmark for direct comparison. Performance is generally assessed against broader small-cap or mid-cap indices and also against peer ESG ETFs. Its performance relative to these benchmarks is a key indicator of its effectiveness in meeting its investment objectives.

Expense Ratio: 0.45

Average Trading Volume

The average trading volume for the Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF is typically lower than that of very large, passively managed ETFs, indicating moderate liquidity.

Bid-Ask Spread

The bid-ask spread for this ETF can be wider than for more heavily traded ETFs, which might lead to slightly higher transaction costs for active traders.

Market Environment Factors

The ETF is influenced by overall economic growth, interest rate policies, inflation, and investor sentiment towards ESG investing. Growth prospects in emerging technologies and sustainable sectors, along with regulatory developments impacting ESG disclosures, play a significant role. The performance of small and mid-cap companies is also closely tied to broader economic cycles.

Growth Trajectory

The ESG ETF market is experiencing significant growth as investor awareness and demand for sustainable investments rise. The Thrivent Small-Mid Cap ESG ETF is positioned to benefit from this trend, with potential for asset growth if its investment strategy proves effective and aligns with evolving ESG preferences. Changes in holdings are driven by the active management process and the continuous assessment of ESG factors and company fundamentals.

Competitive Edge

Thrivent's competitive edge stems from its active management approach within the ESG small-mid cap space, allowing for targeted selection of companies demonstrating strong ESG integration and growth potential. Its affiliation with Thrivent Financial provides a degree of trust and a potential distribution channel to its existing client base. The focus on actively seeking out companies that are not just compliant but are leaders in ESG practices offers a differentiated approach compared to purely passive ESG index tracking.

Volatility

The historical volatility of the Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF is expected to be higher than that of large-cap equity ETFs due to its focus on smaller and mid-sized companies, which are generally more susceptible to market fluctuations and company-specific risks.

Market Risk

The ETF is exposed to market risk, including general equity market downturns, sector-specific risks affecting its underlying holdings, and the risk that ESG factors may not perform as expected or may be subject to changing interpretations and regulations.

Ideal Investor Profile

The ideal investor for this ETF is one seeking capital appreciation, comfortable with the higher risk profile of small and mid-cap equities, and who prioritizes investments that align with environmental, social, and governance principles. Investors looking for actively managed ESG exposure with a focus on growth may find this ETF suitable.

Market Risk

This ETF is generally best suited for long-term investors who can tolerate short-term volatility and are committed to an ESG-focused investment strategy. It is less suitable for short-term traders or those seeking the lowest possible expense ratios typically associated with passive index funds.

The Thrivent ETF Trust - Thrivent Small-Mid Cap ESG ETF offers actively managed exposure to U.S. small and mid-cap companies with a strong focus on ESG principles. While operating in a growing but competitive market, its differentiated strategy and focus on growth potential aim to appeal to long-term investors prioritizing sustainability. Investors should be aware of the inherent volatility of small and mid-cap stocks and the nuances of ESG investing.

Data Sources:

• Thrivent Financial Official Website
• ETF Provider Filings (e.g., SEC filings)
• Reputable Financial Data Providers (e.g., Morningstar, Bloomberg, ETF.com)

Disclaimers:

This JSON output is based on publicly available information and general knowledge about ETFs. Specific financial data, such as AUM and historical performance, can change rapidly and should always be verified with real-time sources before making investment decisions. This information is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a qualified financial advisor.