Thrivent Launches Its First ETF

Thrivent Asset Management unveiled its first exchange-traded fund, the Thrivent Small-Mid Cap ESG ETF (TSME), on Wednesday. The ETF will invest in a combination of small and midsize companies that display a commitment to environmental, social and corporate governance policies.  

The launch follows myriad other funds that were recently introduced to promote sustainability initiatives and investments in the climate solutions space. Pro-ESG funds encourage investors to expand their portfolios and put money into companies that are doing their part to combat climate change. 

The exchange-traded fund has an expense ratio of 0.65% and lists on the NYSE Arca. TSME differs from other traditional ETFs in that it will not disclose what assets it holds each day to the public.  

“We are thrilled to launch our first ETF at such an integral time for our organization and as high investor demand for sustainable strategies continues,” said Mike Kremenak, senior vice president of Thrivent Mutual Funds. 

“The fund follows a disciplined yet flexible process that combines environmental, social and governance factors with fundamental investment research techniques,” he added in an email to ETF.com. 

Portfolio managers at Thrivent aim to conduct a thorough review when establishing whether a company has a sustainable long-term business model and a demonstrated commitment to ESG policies before including it in its portfolio. The asset management firm will also incorporate the third-party ESG materiality framework from the Sustainability Accounting Standards Board. 

Additionally, TSME will not invest in the securities of a company that has a rating of CCC from Morgan Stanley Capital International Inc., the lowest bracket in the MSCI ESG rankings, at the time of purchase.  

Contact Zoya Mirza at [email protected]