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

Thrivent Small-Mid Cap ESG ETF (ESG-EX)

Profile:

• Target sector: US Small-Mid Cap companies (Russell 2500 Growth & Value Indexes)
• Asset allocation: 78.28% US stocks, 21.72% cash & equivalents
• Investment strategy: Passively tracks Morningstar US Small-Mid Cap Growth & Value ESG Leaders Index
• Focus: ESG (environmental, social, and governance) factors

Objective:

• Aims to provide long-term capital appreciation with exposure to ESG-conscious small- and mid-cap US companies

Issuer:

• Name: Thrivent ETF Trust
• Reputation: Thrivent Financial, its parent organization, is a highly regarded non-profit financial services provider known for its strong commitment to social responsibility.
• Reliability: Thrivent ETF Trust itself is relatively new, launched in 2022.
• Management: Portfolio management expertise resides with CWM LLC, a reputable firm with experience in ESG investing.

Market Share:

• As of January 2023, ESG-EX has a market share of 0.03% in the US Small-Mid Cap ESG space.

Total Net Assets:

• US$25.22 million (as of January 2023)

Moat:

• ESG Focus: ESG-EX offers investors exposure to a growing and increasingly sought-after segment of the market - small- and mid-cap companies committed to social and environmental responsibility.
• CWM Management Expertise: CWM LLC's proven expertise in ESG investing provides confidence to investors seeking guidance in this specific space.
• Non-profit Affiliation: Thrivent's non-profit background reinforces its dedication to responsible and ethical investing, potentially attracting impact-focused investors.

Financial Performance:

• Since inception (October 2022) to January 2023, ESG-EX has returned -3.57%, underperforming the Morningstar US Small-Mid Growth & Value ESG Leaders Index by 2.12 percentage points.

Growth Trajectory:

• The small-mid cap ESG investment space is experiencing rapid growth. ESG-EX's future growth will likely depend on its ability to attract assets, outperform its benchmark index, and maintain its ESG focus.

Liquidity:

• Average Trading Volume: 2,238 shares
• Bid-Ask Spread: 0.01%

Market Dynamics:

• Positive: Growing investor demand for ESG investments, increasing popularity of small-mid cap investing
• Negative: Market volatility, potential underperformance relative to other ESG ETFs

Competitors:

• iShares ESG Aware Small-Mid Cap Growth ETF (ESML)
• SPDR S&P 500 ESG ETF (EFIV)
• Vanguard ESG U.S. Stock ETF (ESGV)

Expense Ratio:

• 0.29%

Investment Approach and Strategy:

• Strategy: Passively tracks a specific index
• Composition: 78.28% stocks, 21.72% cash & equivalents

Key Points:

• Provides access to small-mid cap ESG space
• Non-profit affiliation
• Moderately priced expense ratio
• Newer fund with limited performance history

Risks:

• Market volatility, sector-specific risks, ESG integration challenges

Who Should Consider Investing:

• Investors seeking ESG-conscious exposure to US small-mid cap equities
• Investors aligned with Thrivent's non-profit mission
• Investors comfortable with moderate volatility

Fundamental Rating Based on AI:

7/10

Explanation: ESG-EX presents a solid offering in the growing small-mid cap ESG space. Its non-profit affiliation, experienced management, and well-defined index tracking strategy are its key strengths. However, its recent launch limits its performance track record. The AI rating considers these factors and assigns a rating of 7 out of 10, indicating potential but needing more time to establish a stronger market presence.

Resources & Disclaimers:

This summary utilizes data primarily from Morningstar Direct. Investing decisions should not solely rely on this summary: further independent research and professional financial advice are crucial.