TCW continues momentum in ETFs with expanded
suite of active equity products
The TCW Group, a global asset management firm, announced today
that it has completed the conversion of two mutual funds into
exchange-traded funds (ETFs) – the TCW Artificial Intelligence ETF
(AIFD), previously known as the TCW Artificial Intelligence Equity
Fund (Ticker: TGFTX), and the TCW Compounders ETF (GRW), previously
known as the TCW New America Premier Equities Fund (Ticker:
TGUSX).
The conversion expands TCW’s suite of actively managed ETFs and
provides investors with greater access to tax-efficient investment
vehicles that capitalize on TCW’s legacy of strong performance. The
move underscores TCW’s ongoing commitment to bolstering its ETF
platform since the firm’s acquisition of Engine No. 1’s Transform
ETF platform in October 2023.
“This signifies TCW’s continued growth trajectory in ETFs as we
develop new and compelling investment solutions that meet the
evolving needs of our clients,” said Katie Koch, President and CEO
of TCW. “As we continue to innovate, we remain focused on
cross-sector, long term megatrends, such as AI, and their
transformative impact. We will continue to pursue accessible,
efficient products poised to capture ongoing and emerging
opportunities in the market.”
The TCW Artificial Intelligence ETF (AIFD) is an actively
managed fund that aims to invest in companies across sectors that
are leading the development and commercialization of artificial
intelligence technology. AIFD focuses on companies building core
technology, artificial intelligence systems, and those already
adopting the technology. The Fund’s investment objective is
long-term growth of capital.
The TCW Compounders ETF (GRW) is an actively managed fund that
aims to invest in industry leading companies with predictable
business models and compounding free cash flows. GRW invests in
durable companies that have significant recurring revenue, sell
important and difficult-to-replicate products or services, and have
management teams with a strong track record of quality leadership.
The Fund’s investment objective is long-term growth of capital.
“Our ETFs are designed to unlock value for investors by
providing access to the companies we believe are best positioned to
deliver sustained returns over the long-term,” said Jennifer
Grancio, Global Head of Distribution at TCW. “We offer concentrated
active portfolios focused on the highest-conviction ideas. These
strategies are designed to give broad exposure to the companies
best positioned for alpha generation for many years as massive
trends unfold.”
The TCW Artificial Intelligence ETF and TCW Compounders ETF will
join TCW’s existing ETF suite, which includes the TCW Transform
Systems ETF (Ticker: NETZ), the TCW Transform Supply Chain ETF
(Ticker: SUPP), and the TCW Transform 500 ETF (Ticker: VOTE).
Before investing you should carefully consider the fund’s
investment objectives, risks, charges and expenses. This and other
information is in the prospectus, a copy of which may be obtained
from etf.tcw.com. Please read the prospectus carefully before you
invest.
Shares of any exchange traded fund (ETF) are bought and sold at
market price (not net asset value (NAV)), may trade at a discount
or premium to NAV and are not individually redeemed from the Funds.
Brokerage commissions will reduce returns. NAVs are calculated
using prices as of 4:00 PM Eastern Time. The closing price is the
Mid-Point between the Bid and Ask price as of the close of
exchange. Closing price returns do not represent the returns you
would receive if you traded shares at other times.
The TCW Artificial Intelligence ETF (AIFD) acquired the assets
and liabilities of the predecessor mutual fund, the TCW Artificial
Intelligence Equity Fund, on May 6, 2024. As a result of the
transaction, the ETF adopted the accounting and performance history
of its predecessor mutual fund. TCW Artificial Intelligence ETF
(AIFD) is subject to the following risks: Equity securities are
subject to changes in value, and their values may be more volatile
than those of other asset classes. The net asset value of the Fund
will fluctuate based on changes in the value of the equity
securities held by the Fund. Funds investing in mid and small cap
companies involve special risks including higher volatility and
lower liquidity. The Fund’s investments in companies involved in,
or exposed to, artificial intelligence-related businesses may be
negatively impacted because of, among other things, limited product
lines, markets, financial resources and/or personnel these
companies may have, intense competition and potentially rapid
product obsolescence these companies may face, loss or impairment
of intellectual property rights, and the inability to successfully
develop products or services even after spending significant amount
of resources.
The TCW Compounders ETF (GRW) acquired the assets and
liabilities of the predecessor mutual fund, the TCW New America
Premier Equities Fund, on May 6, 2024. As a result of the
transaction, the ETF adopted the accounting and performance history
of its predecessor mutual fund. TCW Compounders ETF (GRW) is
subject to the following risks: Equity securities are subject to
changes in value, and their values may be more volatile than those
of other asset classes. The net asset value of the Fund will
fluctuate based on changes in the value of the equity securities
held by the Fund. Undervalued stocks may not realize their
perceived value for extended periods of time or may never realize
their perceived value. Value stocks may respond differently to
market and other developments than other types of stocks. The Fund
will typically invest a portion of its assets in securities or
other financial instruments issued by companies in the financial
services sector, including, without limitation, the banking,
brokerage and insurance industries.
The Funds are considered to be non-diversified, which means that
each may invest more of its assets in, and be more exposed to the
risks of, the securities of a single issuer or a smaller number of
issuers, which may increase each Fund's volatility.
DEFINED TERMS
Alpha – A measure of active return on investment in excess of
benchmark index.
Cash Flow – The movement of money into or out of a business,
project, or financial product.
The Funds are considered to be non-diversified, which means that
each may invest more of its assets in, and be more exposed to the
risks of, the securities of a single issuer or a smaller number of
issuers, which may increase each Fund's volatility.
The Funds are advised by TCW Investment Management Company LLC.
Distributed by Foreside Financial Services, LLC.
About The TCW Group
TCW is a leading global asset management firm with a broad range
of products across fixed income, alternative investments, equities,
and emerging markets. With over half a century of investment
experience, TCW today manages approximately $200 billion in client
assets. Through its ETF suite, MetWest Funds and TCW Funds, TCW
manages one of the largest fund complexes in the U.S. TCW’s clients
include many of the world’s largest corporate and public pension
plans, financial institutions, endowments and foundations, as well
as financial advisors and high net worth individuals. For more
information, please visit www.tcw.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240506195766/en/
Media: Doug Morris Head of Corporate Communications
+1-213-244-0509 doug.morris@tcw.com