Tema ETFs, a new investment platform, has launched its debut ETFs: the Tema American Reshoring ETF (NYSE Arca: RSHO) and the Tema Luxury ETF (NYSE Arca: LUX). The two actively managed thematic ETFs are available to trade on the New York Stock Exchange.
RSHO seeks to provide long-term growth by investing in companies that stand to benefit from manufacturing moving back to U.S. shores. This long-term process is already leading to the upgrading and securing of supply chains and reindustrialization, reinvigorating the domestic economy.
RSHO predominantly invests in companies that span sectors such as industrials, transport, infrastructure, materials, and semiconductors.
“These are companies that are going to benefit from this multidecade trend [of] deglobalization,” Tema ETFs founder and CEO Maurits Pot told VettaFi.
Pot described reshoring as “a multiyear megatrend” that “has accelerated in the last 24 months because of political pressures… and supply chain insecurity.” He added that reshoring is “a big theme with increasing federal support.”
Meanwhile, in Luxury
LUX, meanwhile, invests in companies operating in the luxury industry. These companies typically have dominant growing brands with aspirational timeless qualities leading to resilient business fundamentals. The universe of luxury spans fashion items, accessories, automobiles, hospitality, and beauty.
Tema ETFs founder and CEO Maurits Pot told VettaFi that while luxury is a booming sector, it “cannot be accessed well through an indexed approach.”
“Half of the companies in the luxury universe haven’t made money in the last five years,” Pot said. “If you buy an index, you buy exposure to a lot of underperforming companies.”
Both ETFs have an expense ratio of 0.75%.
Tema’s newly launched ETF platform was backed by three venture capital firms and several fintech and asset management leaders. Tema plans to launch a whole suite of institutional-grade actively managed thematic ETFs on this platform. In fact, according to Pot, active management is key.
“You can’t access either of these trends with an indexed approach,” he said. “That’s where our in-house team comes in play.”
Pot added that the long-term goal for these new ETFs is to have them “be the flagship authorities of these themes in the market.”
“There are no single ETFs in these themes at the moment,” Pot said. “These are trillion-dollar growing themes.”
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