Thrivent Small-Mid Cap Equity ETF

Thrivent Small-Mid Cap Equity ETF (TSME) is an actively managed fund. Thrivent Asset Management picks its stocks of small and mid-sized US-listed companies, and the fund does not track an index. Its 0.65% expense ratio is well above the 0.34% average of similar funds. As of June 30, 2026, it held a fairly concentrated mix of 68 stocks, led by Enova International, Bel Fuse and SharkNinja.

• Over the year to Oct 27, 2026, TSME returned +7.1%, 5th of 5 among similar funds.
• Its worst full calendar year was 2025 (+13.8%); its best was 2024 (+19.0%).
• The deepest fall in its price history was 26.6% (Nov 25, 2024 to Apr 8, 2025), recovered by Aug 8, 2025.

As of Jun 30, 2026, the fund held 68 securities; the ten largest made up 26.32% of assets.

• Over the three months to Jun 30, 2026, investors withdrew a net $25.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +14.08%, +0.40%, +9.96%.

TSME does not follow an index. Its adviser, Thrivent Asset Management, uses fundamental research, which means studying a company's business, finances and leadership. It looks for small and mid-sized companies it believes have strong growth prospects, sit in industries with a positive economic outlook, have high-quality management or have a strong financial position. Under normal conditions, at least 80% of net assets goes into stocks of such companies listed on a national exchange.

The fund counts a company as small or mid-sized if it is no larger than the biggest company in the Russell 2500 Index (about $44.2 billion as of November 30, 2025) or the S&P MidCap 400 Index (about $34.5 billion). The manager decides what to own and how much of each, so there is no fixed weighting rule or rebalancing schedule. As of June 30, 2026, the fund held 68 stocks. The 10 largest made up about 26% of assets, and the top position, Enova International, was about 3.1%.

The manager trades often: portfolio turnover was 80%, according to the prospectus filed January 28, 2026. As of June 30, 2026, the fund held only ordinary stocks, with no derivatives or leverage. About 84% was in US companies. The rest was mostly in firms based in Ireland, the Cayman Islands and Bermuda.

• TSME charges 0.65% a year, versus an average of 0.34% for the similar funds below (5th of 5, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $810 over 10 years (assuming a 5% annual return).

It is a concentrated, actively managed small- and mid-cap stock fund with above-market swings and an above-average fee, so it fits better as a smaller add-on than as a foundation.

TSME adds smaller US companies that large-cap index funds mostly miss. It launched in October 2022, so it has no record through the 2008 crisis, the 2020 COVID crash or the 2022 bear market. Its deepest drop was 26.6%, from November 25, 2024 to April 8, 2025. It recovered by August 8, 2025, about four months later. Every full calendar year has been positive, and 2025 was the weakest at 13.85%. Its beta, a gauge of how much it swings compared with the market, was 1.41 for the year to October 27, 2026. Bigger swings are a risk for anyone forced to sell in a slump. The trailing yield was just 0.15% as of October 27, 2026, paid once a year. In the SEC's example, the 0.65% fee costs about $66 in the first year per $10,000. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).