Tema launches three innovative, professionally managed thematic ETFs: American Reshoring, Luxury, & Monopolies and Oligopolies
NEW YORK–(BUSINESS WIRE)–Tema ETFs (“Tema”) launches its actively managed thematic ETF offering with three strategies: American Reshoring (RSHO), Luxury (LUX) and Monopolies and Oligopolies (TOLL). These strategies are the first to address these specific themes in an actively managed ETF in the United States. All three strategies will seek to provide long-term growth through equity investment solely focused on their own respective themes.
“We are excited to be the first issuer to bring these innovative strategies to the US market” said Maurits Pot, Chief Executive Officer and founder of Tema Global, “We firmly believe that these themes cannot be accessed effectively through a passive indexed approach. Our thematic focus, bottom-up investment process and portfolio managers’ industry expertise underpins these differentiated institutional grade ETF investment strategies. Risk management lies at the core of our active investment process, aiming to provide investors with more than just access to the theme. We monitor risk through a 3-step process, identifying risk factors, assessing risk levels, and ultimately taking aim at managing these risks.”
The Tema American Reshoring ETF (RSHO) seeks to provide long-term growth through investment in companies we’ve identified as enablers and beneficiaries of the emerging American industrial renaissance. The portfolio manager for RSHO, Chris Semenuk, has over 30 years of investing experience in the US and global equity markets, and has domain expertise within industrials investing. Reshoring is a multi-year trend spurred by supply chain insecurity, geopolitical tensions, and deglobalization. Unprecedented US government spending, through bills such as the Infrastructure Investment and Jobs Act, is accelerating this trend and already stimulating growth.
The Tema Luxury ETF (LUX) seeks to provide long-term growth through equity investment solely within the global luxury industry. The portfolio manager for LUX, Javier G. Lastra, CFA, is a seasoned industry research veteran with over 23 years of experience, having served as head of consumer research at several top-tier banks including Goldman Sachs. With €1.41 Tn in annual retail sales value, the luxury industry is defined by the timelessness, desirability, heritage and exclusivity of its offerings. Luxury firms leverage strong brand power across a broad range of verticals including fashion and accessories, automobiles, beauty, and experiences. The luxury industry has historically displayed increasing resilience with minimal cyclicality, while tapping into an expanding array of growth opportunities. Existing luxury indexes are diluted with consumer goods exposure such as Nike, Apple, Tesla, thereby lacking quality luxury focus. Furthermore, the luxury goods industry has historically witnessed wide dispersion in share price returns between companies, underscoring why we believe an indexation approach doesn’t work well for luxury.
The Tema Monopolies and Oligopolies ETF (TOLL) seeks to provide long-term growth through equity investment solely within industries characterized by monopolistic structures. The portfolio manager for TOLL, Yuri Khodjamirian, CFA, is Tema’s Chief Investment Officer and has over 12 years of investment experience in global markets, having previously co-managed a fund with more than $2 Bn in assets. Monopolistic structures are defined by sustainable competitive advantages and high barriers to entry, typically leading to high margins and profitability. Over time, these quality businesses have built mission critical offerings that create irreplaceable value to their customers allowing for a resilient and durable long-term growth outlook.
Tema is a SEC-registered investment adviser and investment management firm focused on active ETF investing and infrastructure, backed by Accel and Index Ventures. Tema aims to pioneer active thematic ETFs, which offer investors unique access not available in traditional passive investments. The firm provides defined exposure to innovative, underpenetrated themes through its bottom-up research process, underpinned with risk management and industry expertise. Tema is led by a team of experienced professionals and focused on delivering first-in-class exposure to the themes of its products.
For more information, please visit www.temaetfs.com
Before investing, carefully consider the Fund’s investment objective, risks, charges, and expenses contained in the prospectus available at www.temaetfs.com. Read carefully before investing.
Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.
Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors, including Consumer Discretionary and Consumer Staples, and thus will be more susceptible to the risks affecting those sectors than funds that have more diversified holdings across several sectors.
The success of companies that sell luxury goods and services may depend heavily on the disposable household income and consumer spending of a relatively small segment of the general population, rather than the consumer population as a whole. Changes in consumer taste among such segment of the population can also affect the demand for, and success of, luxury goods and services in the marketplace. Consumer spending on luxury goods and services can also be adversely affected as a result of declines in consumer confidence levels, even if prevailing economic conditions are favorable. In an economic downturn, consumer discretionary spending levels generally decline, often resulting in disproportionately large reductions in the sale of luxury goods and services.
Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors, including Industrials, Materials and Utilities, and thus will be more susceptible to the risks affecting those sectors than funds that have more diversified holdings across several sectors.
The success of the Fund’s investment strategy depends in part on the ability of the companies in which it invests to reshore or onshore services to the United States. Companies may face significant legal, financial and political headwinds in the reshoring or onshoring of jobs into the United States, and these factors may be detrimental to performance. Industrial and Utilities sector companies will likewise be subject to the risks of Government regulation, world events, exchange rates and economic conditions, technological developments and liabilities for environmental damage and general civil liabilities. In addition, many materials companies are significantly affected by the level and volatility of commodity prices, exchange rates, import controls, worldwide competition, environmental policies and consumer demand.
Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors, including Engineering and construction, Financial Sector, FinTech, Industrials and Infrastructure, and thus will be more susceptible to the risks affecting those sectors than funds that have more diversified holdings across several sectors.
The success of the Fund’s investment strategy depends in part on the ability of the companies in which it invests to maintain proprietary technology used in their products and services. Companies in which the Fund invests will rely, in part, on patent, trade secret and trademark law to protect that technology, but competitors may misappropriate their intellectual property, and disputes as to ownership of intellectual property may arise. Similarly, if a company is found to infringe upon or misappropriate a third-party’s patent or other proprietary rights, that company could be required to pay damages to such third-party, alter its own products or processes, obtain a license from the third-party and/or cease activities utilizing such proprietary rights, including making or selling products utilizing such proprietary rights. These disputes and litigations may be detrimental to performance.
Investing in foreign and emerging markets involves risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments. In addition, the fund is exposed to currency risk.
ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Total Returns are calculated using the daily 4:00pm EST net asset value (NAV). Market price returns reflect the midpoint of the bid/ask spread as of the close of trading of the exchange where Fund shares are listed. Market price returns do not represent the returns you would receive if you traded shares at other times.
Tema Global Limited serves as the investment adviser to Tema American Reshoring ETF, Tema Luxury ETF, and Tema Monopolies and Oligopolies ETF (the “Funds” ), and NEOS Investments, LLC serves as a sub adviser to the Funds. The Funds are distributed by Foreside Services LLC, which is not affiliated with Tema Global Limited nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck.
For inquiries: [email protected]
1 Bain & Company, “Renaissance in Uncertainty: Luxury Builds on Its Covid Rebound”, 2022
Gregory FCA for Tema Global