Tema debuts risk-managed thematic ETFs

May 18th, 2023 | By | Category: Equities

Newly minted ETF issuer Tema ETFs has introduced a suite of actively managed funds combining thematic investment strategies with institutional-grade risk management.

Maurits Pot, CEO and founder of Tema Global

Maurits Pot, CEO and founder of Tema Global.

The suite has debuted with three strategies targeting the investment themes of ‘American Reshoring’, ‘Luxury’, and ‘Monopolies and Oligopolies’.

According to Tema, the funds are the first in the US to address these specific themes within the actively managed ETF structure.

Listed on NYSE Arca with expense ratios of 0.75%, they are the Tema American Reshoring ETF (RSHO US), Tema Luxury ETF (LUX US), and Tema Monopolies and Oligopolies ETF (TOLL US).

Each ETF invests in a portfolio of 15 to 100 securities. Portfolio construction is driven by a combination of top-down fundamental sector research, industry-specific expertise, quantitative tools, and bottom-up security analysis.

In contrast to most thematic strategies, which are risk-on trades, Tema maintains that its approach is rooted in risk management and capital preservation.

Maurits Pot, CEO and founder of Tema Global, commented: “We are excited to be the first issuer to bring these innovative strategies to the US market. 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 three-step process, identifying risk factors, assessing risk levels, and ultimately taking aim at managing these risks.”

American Reshoring

The Tema American Reshoring ETF invests in US companies that stand to benefit from manufacturing moving back to US shores. Eligible firms may come from a wide range of sectors including industrials, transport, infrastructure, materials, and semiconductors.

Tema believes that American Reshoring, which is already being supported by US government spending such as the Infrastructure Investment and Jobs Act, is set to be a significant, multi-year trend driven by supply chain insecurity, geopolitical tensions, and deglobalization. Firms that are reshoring are upgrading and securing their supply chains, thereby creating long-term value through increased resilience.

The fund’s portfolio manager is Chris Semenuk who has over 30 years of investing experience in US and global equity markets, as well as domain expertise within industrial investing.


The Tema Luxury ETF invests in the global industry for luxury goods and services which records approximately €1.4 trillion worth of retail sales per year. Luxury firms leverage strong brand power across a broad range of verticals including fashion, automobiles, beauty, and experiences, and have historically displayed economic resilience during market downturns.

Tema notes that passive investment products focused on the luxury industry are typically diluted with consumer goods exposure such as Nike, Apple, and Tesla, thereby lacking true quality focus. Tema further highlights how the luxury goods industry has historically exhibited a wide dispersion in share price returns between companies, underscoring the potential for focused active management to deliver outperformance.

The fund’s portfolio manager is Javier G. Lastra, a seasoned industry research veteran with over 23 years of investment experience, having served as head of consumer research at several top-tier banks including Goldman Sachs.

Monopolies and Oligopolies

The Tema Monopolies and Oligopolies ETF targets companies operating within monopolistic industries characterized by sustainable competitive advantages and high barriers to entry such as regulation or switching costs.

Monopolies and oligopolies can generate high returns on invested capital as, over time, these businesses have built mission-critical offerings that create irreplaceable value for their customers, allowing for a resilient and durable long-term growth outlook.

The fund’s portfolio manager is Yuri Khodjamirian, CIO at Tema, who has over 12 years of investment experience in global markets, having previously co-managed a fund with more than $2 billion in assets.

Tags: , , , , , , ,

Leave a Comment