Booming Asset Managementa Fortune 500 company with $190 billion in assets under management or advice, made its ETF debut with a socially responsible mid- and small-cap equity fund.
The ETF Thrivent Small-Mid Cap ESG (TSME US) was listed on NYSE Arca with a fee rate of 0.65%.
The actively managed fund uses the active ETF structure of the New York Stock Exchange known as AMS (Actively Managed Solution).
The NYSE AMS model allows managers to avoid having to disclose portfolio holdings on a daily basis while maintaining the tax efficiency, liquidity and lower costs typically associated with regular ETFs.
It achieves this through the use of a proxy portfolio that is designed to closely track an ETF’s performance, but differs in composition and weighting from the ETF’s actual holdings.
The ETF is managed by Matthew Finn, Head of Equity Funds; and Chad Miller, senior portfolio manager at Thrivent Asset Management. Finn and Miller joined Thrivent in 2004 and 2013, respectively.
The fund invests in companies with long-term sustainable business models that have demonstrated their commitment to ESG policies.
Eligible companies may include those that manage their impact on climate change and natural resources, promote fair labor practices and inclusive workplaces, develop better relationships with vendors and suppliers, and support corporate governance practices. companies with strong business ethics, board composition, executive compensation, and management incentives.
The fund will not invest in any company with an MSCI ESG rating of CCC (the lowest rating in MSCIthe seven-point rating scale of ); however, it may include B-rated companies (the second lowest score) if that company presents an attractive investment opportunity and has demonstrated a commitment to improving its ESG score.