Thrivent Ultra Short Bond ETF (TUSB)

Overview

TUSB provides segmented exposure to the US fixed income market through the active investment of ultra-short term domestic debt securities that carry an investment grade credit rating. This approach allows the fund to cater to investors seeking a more conservative investment option with limited duration risk, focusing on a dollar-weighted average effective maturity of two years or less. The fund aims to deliver a high level of current income whilst maintaining a carefully managed approach to investment selection.

In the pursuit of maximizing returns, TUSB employs fundamental and various investment research techniques to meticulously evaluate the value of each security. Being an actively managed fund, the investment decisions are left to the discretion of the adviser, allowing flexibility in responses to market fluctuations and opportunities. Furthermore, TUSB may utilize derivatives, including US treasury future contracts, to effectively manage the fund's duration and interest rate risk, ensuring a robust defense against market volatility.

Products and Services

• Corporate Bonds:

  TUSB invests in corporate bonds that are deemed to have an investment grade credit rating, allowing the fund to generate consistent income while managing risk.

• Government Bonds:

  Investment in government-issued bonds provides stability and security, contributing to the overall risk-adjusted returns of the fund.

• Asset- and Mortgage-Backed Securities:

  This category includes securities backed by cash flows from assets or mortgages, aiming to enhance the fund's yield while diversifying its sources of income.

• Preferred Stocks:

  By investing in preferred stocks, TUSB can tap into equity-like returns while receiving fixed dividends, further boosting current income levels.

• Collateralized Debt Obligations (CDOs):

  TUSB may include CDOs in its portfolio which are structured finance products backed by a pool of loans and other assets, allowing for diversified risk management.

• USD-Denominated Debt of Foreign Companies:

  This allows TUSB to capture international opportunities while dealing in understandable currency terms, potentially enhancing returns through global investments.

• Derivatives:

  The use of derivatives like US treasury future contracts aids in the management of duration and interest rate risk, providing a strategic tool to hedge against potential downturns.