Thrivent Debuts 2 Value ETFs Through Conversions

Thrivent Asset Management converted two active mutual funds into ETFs—Thrivent Small Cap Value ETF (TSCV) and Thrivent Mid Cap Value ETF (TMVE)—which began trading on NYSE Arca; TSCV has $146.74m AUM with a 0.60% expense ratio and TMVE has $19.88m with a 0.55% expense ratio. Both funds deploy value-focused, fundamental stock-selection strategies targeting companies with improving business fundamentals and stable or rising ROIC (TSCV holds 61 stocks including CWK, PLYM and UMBF; TMVE holds 81 stocks including MTB, USB and SYY), and emphasize upside-over-downside scenario modeling and intrinsic-value-driven high-conviction ideas. The conversions give investors a more tax-efficient ETF wrapper and broader access to Thrivent’s active small- and mid-cap value capabilities, but the ETFs now carry management fees (unlike their prior affiliated mutual-fund structures), which could affect future performance versus historical results.

Analysis

Thrivent Asset Management converted two active mutual funds into ETFs—Thrivent Small Cap Value ETF (TSCV) and Thrivent Mid Cap Value ETF (TMVE)—which began trading on NYSE Arca. TSCV reports $146.74 million in assets with a 0.60% expense ratio and TMVE has $19.88 million with a 0.55% expense ratio, shifting the strategies into a tax-efficient ETF wrapper.

Both funds retain a value-oriented, fundamental stock-selection mandate focused on companies with improving business fundamentals and stable or rising return on invested capital; TSCV holds 61 stocks (top positions: CWK 2.8%, PLYM 2.6%, UMBF 2.6%) and seeks names trading at under 70% of estimated intrinsic value, while TMVE holds 81 stocks (top positions: MTB 2.7%, USB 2.6%, SYY 2.2%). Managers emphasize scenario modeling to identify ideas with two-to-three times more upside than downside, reflecting high-conviction active management.

Key implications are a clearer ETF access point and potential tax advantages versus the prior affiliated mutual-fund structure, but the introduction of management fees (absent previously) may reduce net returns relative to historical mutual-fund performance. Given the modest AUM—especially TMVE—and a mildly positive market sentiment signal, initial liquidity, bid-ask spreads and early fund flows are primary execution and performance risks investors should monitor.

Key Decisions for Investors

• Consider initiating small, staggered pilot positions in TSCV and TMVE to gain active small-/mid-cap value exposure while observing liquidity and trading costs given TSCV's $146.74m AUM and TMVE's $19.88m AUM
• Analyze expected net-of-fee returns versus the historical mutual-fund track record because the ETFs now charge management fees (0.60% for TSCV, 0.55% for TMVE) whereas the prior affiliated mutual funds did not
• Monitor early fund flows, bid-ask spreads, and tracking of the funds' stated upside-over-downside objectives and top-holdings concentration (CWK, PLYM, UMBF, MTB, USB, SYY) before increasing allocations
• Reassess allocation after 3–6 months based on AUM growth, liquidity metrics, and evidence that manager stock-selection and scenario-modeling are delivering fee-adjusted outperformance