LUX
Luxury ETF
Compelling luxury goods industry opportunities
Why LUX ETF?
Timeless Aspirational Moats
Luxury brands have a timeless and aspirational appeal to consumers, creating heritage-based moats and allowing them to travel easily
Pricing Power
Luxury brands can be characterized as exhibiting superior pricing power evidenced by consistent organic growth and strong gross margins (~70%)
Underpenetration
Luxury brands benefit from strong volume growth drivers across different underpenetrated verticals including geographies (emerging markets), demographics (gen-Z), channels (e-commerce) and sustainability (ESG)
Defensive Nature
Luxury markets historically exhibit only mild cyclicality, supported by the affluence of typical luxury consumers combined with the aspirational and unique nature of the product or service
Quality
The luxury sector differentiates itself in quality products and quality business characteristics, such as operating margins and high returns on capital
Fund Overview
Fund Details
As of April 16, 2024
Fund Summary
Portfolio Manager
Investment Partner
Javier G. Lastra, CFA
How does the Tema LUX ETF fit in a portfolio?
Investment Style Box
Source: Tema. The investment style Box reveal’s a fund’s investment strategy by showing its investment style and market capitalization based on the fund’s portfolio holdings.
Potential Portfolio
Equity Allocation
3-5%
Equity Satellite
LUX ETF
Equity core
Where could a position be funded from?
- From a large-cap position due to LUX’s large-cap growth style.
- May be a better alternative to existing equity consumer exposure in a portfolio.
- Aims to introduce quality exposure through what we believe is an increasingly resilient industry with strong growth prospects.
Portfolio Breakdown
Top 10 holdings
As of April 16, 2024
Country Breakdown
France
30.17%United States
18.93%Italy
15.05%Germany
9.56%Others
26.29%Industry Breakdown
Consumer Cyclicals
57.02%Consumer Non-Cyclicals
23.44%Consumer Services
15.66%Cash & Cash Equivalents
3.87%- Performance
- Distributions
- Premium / Discount
Prices & Performance
- Mar 31, 2024
- Mar 31, 2024
LUX
3 months
1 Year
3 Years
5 Years
Since inception
Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance data quoted. Returns for periods of less than one year are not annualized.
The market price returns are based on the official closing price of an ETF share or, if the official closing price isn’t available, the midpoint between the national best bid and national best offer (“NBBO”) as of the time the ETF calculates current NAV per share, and do not represent the returns you would receive if you traded shares at other times. NAVs are calculated using prices as of 4:00 PM Eastern Time. The first trading date is typically several days after the fund inception date. Therefore, NAV is used to calculate market returns prior to the first trade date because there is no bid/ask spread until the fund starts trading.
Distributions
Record Date
Ex-Date
Payable Date
Total Distribution
Income
ST Cap Gains
Premium/Discount
Days Traded at Nav
Days Traded at Premium
Days Traded at Discount
LUX NAV / Market Price
Risk Information
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus or summary prospectus, which may be obtained by visiting www.temaetfs.com.
Read the prospectus carefully before investing.
Investing involves risk including possible loss of principal. There is no guarantee the adviser’s investment strategy will be successful.
Sector Focus Risk: The Fund may invest a significant portion of its assets in one or more sectors, including Consumer Discretionary and Consumer Staples, and thus will be more susceptible to the risks affecting those sectors than funds that have more diversified holdings across several sectors.
The success of companies that sell luxury goods and services may depend heavily on the disposable household income and consumer spending of a relatively small segment of the general population, rather than the consumer population as a whole. Changes in consumer taste among such segment of the population can also affect the demand for, and success of, luxury goods and services in the marketplace.
Consumer spending on luxury goods and services can also be adversely affected as a result of declines in consumer confidence levels, even if prevailing economic conditions are favorable. In an economic downturn, consumer discretionary spending levels generally decline, often resulting in disproportionately large reductions in the sale of luxury goods and services.
Investing in Foreign and emerging markets involves risks relating to political, economic, or regulatory conditions not associated with investments in U.S. securities and instruments. In addition, the fund is exposed to currency risk.
Because the Fund evaluates ESG factors to assess and exclude certain investments for non-financial reasons, the Fund may forego some market opportunities available to funds that do not use these ESG factors.
Tema Global Limited serves as the investment adviser to Tema Luxury ETF (the “Fund”), and NEOS Investments, LLC serves as a sub-adviser to the Fund. The Fund is distributed by Foreside Fund Services LLC, which is not affiliated with Tema Global Limited nor NEOS Investments, LLC. Check the background of Foreside on FINRA’s BrokerCheck.