This week, Thornburg Investment Management made its foray into the ETF market with the listing of two international funds. These new funds mark the first ETFs from Thornburg to come to market.
“We are excited to enter the ETF market and provide clients with an additional means to access our investment solutions,” noted Mark Zinkula, CEO of Thornburg Investment Management. “Each of these new ETFs reflects our long-term commitment to meet client demand for solutions with an active, fundamental investment process and high-conviction approach.”
The Thornburg International Strategy
The first fund, the Thornburg International Equity ETF (TXUE), launched on January 22. It looks to provide capital appreciation over the long term for its investors. This actively managed has a net expense ratio of 0.65%.
Primarily, TXUE invests in companies tied to developed markets outside the United States. It uses bottom-up analysis to home in on companies that may be potentially undervalued.
This fund may invest in companies of any market cap. However, the fund’s management team expects to focus on large-caps. At this point, TXUE’s portfolio size is anticipated to slot between roughly 50 to 55 securities.
Focused on Growth
Launching a day later on January 23 is the Thornburg International Growth ETF (TXUG). The fund’s objective is to generate long-term capital growth. This actively managed fund has a net expense ratio of 0.70%.
Similarly to TXUE, TXUG focuses its investments on securities linked to developed markets outside the United States. However, this fund’s strategy is more directed toward companies that offer deep potential for growth.
TXUG’s portfolio can be filled with companies of any cap size. Generally, its portfolio is expected to contain roughly 35 to 50 different issuers.
Thornburg Investment Management has well over four decades of experience in piloting investment strategies. Overall, these new ETFs can help investors gain easier access to Thornburg’s distinctive fund management.
“Thonrburg has a strong presence in the active management mutual fund world,” added Todd Rosenbluth, head of Research at VettaFi. “It’s exciting to see them bring their expertise to support ETF-minded advisors. Demand for actively managed equity ETFs has accelerated, and VettaFi expects advisors to further embrace such strategies from managers they know.”
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