TEMA ETF - A New Fund Manager Focused on Thematic Solutions

Tema American Reshoring ETF | Ticker: RSHO | Expense Ratio: 0.99%

Against the backdrop of the global pandemic, the inefficiencies and limitations of a global supply chain that depended on the low-cost manufacturing capabilities of the Chinese economy were made apparent to many businesses in the US and across the globe. As a result of this realization, reshoring has become a top-of-mind idea for many manufacturers to mitigate supply chain risk that would greatly impact business continuity. 

As detailed in Deloitte’s The future of freight: Transforming the movement of goods, American companies are believed to have restored nearly 350,000 jobs in 2022, up from 260,000 in 2021; a trend that is expected to continue into the future and one that the Tema American Reshoring ETF seeks to capitalize on. The solution seeks to provide long-term growth through investment in companies identified as enablers and beneficiaries of the emerging American industrial renaissance. 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. For investors interested in investing in this mega-trend, this solution provides comprehensive exposure to the industries that are beneficial participants of manufacturers moving production back to US shores. 

Tema Luxury ETF | Ticker: LUX | Expense Ratio: 0.99%

When consumers think about luxury items, qualities such as exclusivity, timelessness, and desirability often come to mind, but said qualities are also appealing to the investors that are seeking assets that can maintain or appreciate in value over varying market cycles. As noted in the most recent Bain & Company and Altagamma’s 2023 spring luxury study, the personal luxury goods market posted a record year in 2022, reaching a market value of $383 billion and is projected to grow 5-12% in 2023, despite uncertain economic conditions. For investors seeking industries that have strong pricing power, a large addressable market, and both strong revenue and earnings growth, the luxury industry is worth consideration.  

The Tema Luxury ETF seeks to provide long-term growth through equity investment solely within the global luxury industry. The luxury industry has historically displayed increasing resilience with minimal cyclicality, while tapping into an expanding array of growth opportunities. Luxury firms, such as LVMH, Hermes, and Kering leverage strong brand power across a broad range of verticals including fashion and accessories, automobiles, beauty, and experiences.

For investors looking to gain exposure to the luxury industry, this globally focused solution provides holistic exposure to the leading luxury businesses worldwide. As the brand value and cache of these luxury businesses grow over time, investors will benefit from their increasing consumer resonance and desirability over time. 

Tema Monopolies and Oligopolies ETF | Ticker: TOLL | Expense Ratio: 0.99%

An economic moat, in the context of investing, refers to a sustainable competitive advantage that a company possesses, which allows it to maintain its market position and fend off competition over an extended period. A company with a strong economic moat enjoys certain characteristics that make it difficult for competitors to erode its market share and profitability. These advantages act as barriers to entry, creating a protective buffer around the company's profits.

The Tema Monopolies and Oligopolies ETF seeks to provide long-term growth through equity investment solely within industries characterized by monopolistic structures, as they are representative of companies that have resilient competitive advantages that make them difficult to disrupt. For investors that are seeking an investment solution that is industry-agnostic and prioritizes businesses that are quality-oriented and capable of maintaining or elevating their value proposition in the mind of clients and consumers, regardless of the prevailing macroeconomic environment, the objective of this ETF fits said criteria. 

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.