Thrivent preps semi-transparent ESG ETF

The small- and mid-cap product will not disclose holdings daily

Thrivent is preparing to launch an actively managed semi-transparent ETF composed of small- and mid-cap stocks.

The Minneapolis-based firm on August 4 filed a prospectus for the Thrivent Small-Mid Cap ESG ETF. That follows the firm’s registration of the ETF trust late last year.

The product, which is actively managed, uses a “semi-transparent” structure allowed under exemptive relief from the Securities and Exchange Commission. The ETF does not disclose its holdings daily but instead provides a “proxy portfolio” to help keep shares trading at net asset value and given investors a rough idea of the holdings. By keeping the exact portfolio under wraps, the firm would not give away its strategy to would-be competitors.

The fund will invest at least 80% of its net assets in companies that Thrivent “believes have sustainable long-term business models and demonstrated commitment to ESG policies, practices or outcomes,” the prospectus states.

The ETF has total net fees of 65 basis points and will be overseen by Thrivent Asset Management portfolio managers Matthew Finn and Charles Miller, who have been with the company since 2004 and 2013, respectively.