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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