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

Overview

The Thrivent Small-Mid Cap ESG ETF (TSME) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE US Small Cap Choice Index. It invests in small- and mid-capitalization U.S. companies that meet certain environmental, social, and governance (ESG) criteria.

Reputation and Reliability

Thrivent is a financial services organization with a long history, operating since 1902. They are known for their commitment to serving members and communities, which translates into a responsible investment approach.

Management Expertise

Thrivent has a team of experienced investment professionals managing their ETFs, leveraging their expertise in ESG investing to construct and manage the portfolio.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE US Small Cap Choice Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the FTSE US Small Cap Choice Index, which is designed to represent the performance of small- and mid-capitalization U.S. companies that meet certain ESG criteria.

Composition The ETF primarily holds stocks of small- and mid-sized U.S. companies that have been screened based on ESG factors. It does not hold bonds or commodities directly.

Market Share: Data not available to determine accurate market share.

Total Net Assets (AUM): 5100000

Key Competitors

• Xtrackers S&P ESG Small Cap Equity ETF (SNXX)
• Vanguard ESG U.S. Stock ETF (ESGV)
• iShares ESG Aware MSCI USA Small-Cap ETF (ESML)

Competitive Landscape

The ETF industry for ESG-focused small- and mid-cap funds is becoming increasingly competitive. TSME competes with larger, more established ETFs like ESGV and ESML. TSME's advantage lies in its focus on Thrivent's values-based investing approach, while its disadvantage could be its smaller AUM compared to its competitors.

Historical Performance: Historical performance data is not available in this response. Refer to official fund documents for performance data.

Benchmark Comparison: Performance should be compared to the FTSE US Small Cap Choice Index to assess effectiveness.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume indicates its liquidity, with higher volume suggesting easier trading, although actual trading volume can vary.

Bid-Ask Spread

The bid-ask spread, which can fluctuate during the trading day, represents the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, providing a measure of trading costs.

Market Environment Factors

TSME's performance is influenced by economic growth, interest rates, market sentiment towards small- and mid-cap stocks, and investor demand for ESG investments.

Growth Trajectory

The growth trajectory depends on the continued demand for ESG investments and the fund's ability to track its index effectively. Changes in ESG screening methodologies could also influence the fund's holdings.

Competitive Edge

TSME differentiates itself through Thrivent's long-standing reputation and commitment to values-based investing. The ESG screening process aligns with specific ethical and environmental standards, attracting investors who prioritize these factors. Thrivent's expertise in integrating ESG factors into investment decisions offers a potential competitive advantage. The fund's focus on small- and mid-cap companies provides exposure to a segment of the market that may offer higher growth potential compared to large-cap stocks. Its competitive advantage lies in its focus on both financial returns and societal impact.

Volatility

The volatility of TSME is likely to be higher than that of broader market ETFs due to its focus on small- and mid-cap stocks, which are generally more volatile than large-cap stocks.

Market Risk

TSME is subject to market risk, including the risk of declines in the overall stock market. Additionally, the ETF is subject to ESG-related risks, such as the risk that the ESG criteria used to select investments may not align with investor preferences or that the ESG ratings of companies may be inaccurate.

Ideal Investor Profile

The ideal investor for TSME is someone who seeks exposure to U.S. small- and mid-cap stocks, prioritizes ESG factors in their investment decisions, and is comfortable with the higher volatility typically associated with smaller companies.

Market Risk

TSME is suitable for long-term investors who are looking for a core or satellite holding in their portfolio and who are aligned with Thrivent's values-based investment approach.

The Thrivent Small-Mid Cap ESG ETF (TSME) offers investors exposure to U.S. small- and mid-cap companies while incorporating ESG considerations. It tracks the FTSE US Small Cap Choice Index, aiming to deliver returns in line with its benchmark. TSME is suitable for investors seeking both financial returns and positive societal impact. However, investors should be aware of the ETF's potential for higher volatility compared to broader market ETFs and its relatively small AUM, which may impact liquidity.

Data Sources:

• Thrivent Asset Management
• FTSE Russell
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Past performance is not indicative of future results. Market share data may not be entirely accurate due to data limitations.