The TCW Group, a leading global asset management firm, today
announced that, effective May 30, 2024, the listing exchange for
shares of each of the following series (each, an “ETF” and,
collectively, the “ETFs”) of TCW ETF Trust (the “Trust”) will be
changed from each ETF’s current listing exchange, as indicated
below, to the floor of the New York Stock Exchange LLC
(“NYSE”):
ETF
Ticker
Current
Exchange
TCW Transform 500 ETF
VOTE
Cboe BZX Exchange, Inc.
TCW Transform Systems ETF
NETZ
Cboe BZX Exchange, Inc.
TCW Transform Supply Chain
ETF
SUPP
Cboe BZX Exchange, Inc.
TCW Artificial Intelligence
ETF
AIFD
NYSE Arca, Inc.
TCW Compounders ETF
GRW
NYSE Arca, Inc.
TCW offers the TCW Transform 500 ETF, which holds stocks of the
500 largest U.S. publicly traded companies. By actively voting and
directly engaging such companies on material issues, VOTE seeks to
drive long-term value. The other ETFs are actively managed and aim
to invest in companies focused on capturing the value presented by
rapidly developing cross-sector thematic opportunities such as the
reshoring of supply chains, the energy transition, or artificial
intelligence, as applicable.
TCW is committed to strengthening the execution experience for
its clients and investors when trading in shares of each of the
ETFs. By listing on the NYSE, the ETFs will have access to
best-in-class trading technology and human oversight. Additionally,
listing on the NYSE floor has the potential to enhance the ETFs’
market quality as marked by tighter spreads, larger quoted size
trades and additional liquidity.
The ETFs will begin trading on the NYSE as of the open of
trading on May 30, 2024.
Shareholders of each of the ETFs are not anticipated to be
impacted or need to take any action in connection with the change
in listing exchange. The ticker of each ETF will remain the
same.
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.
Important Information
Before investing you should carefully consider the investment
objectives, risks, charges and expenses of each ETF (each referred
to herein as a “Fund”). This and other information is in a Fund’s
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 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 Funds are advised by TCW Investment Management Company LLC,
a wholly-owned subsidiary of TCW, and distributed by Foreside
Financial Services, LLC.
Effective October 13, 2023, TCW acquired Engine No. 1’s ETF
business and the Transform Funds' adviser became TCW Investment
Management Company LLC (the “Adviser”). Prior to that date, the
Transform Funds' adviser was Fund Management at Engine No. 1
LLC.
TCW Artificial Intelligence ETF (AIFD) seeks to invest in
the companies that the Adviser believes will benefit from the
artificial intelligence, or “AI,” transformation. The Fund’s
investment objective is long-term growth of capital. The Fund is
actively managed and may be susceptible to an increased risk of
loss, including losses due to adverse events that affect the Fund’s
investments more than the market as a whole, to the extent that the
Fund’s investments are concentrated in the securities of a
particular issuer or issuers, country, group of countries, region,
market, industry, group of industries, sector or asset class. The
Fund may purchase and write put and call options on futures
contracts that are traded on an exchange as a hedge against changes
in value of its portfolio securities, or in anticipation of the
purchase of securities, and may enter into closing transactions
with respect to such options to terminate existing positions. There
is no guarantee that such closing transactions can be effected.
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.
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 concentrate
its investments in various technology industries. At times of such
impact, the value of the Fund may fluctuate more widely than it
would for a fund that invests more broadly across varying sectors.
The Fund may be more susceptible to any single economic, political,
or regulatory event than a diversified fund because a higher
percentage of the Fund’s assets may be invested in the securities
of a limited number of issuers. Investments in emerging market
countries may be subject to greater risks than investments in
developed countries. Active ownership can take any of several
forms, including proxy battles, publicity campaigns, and
negotiations with management. In the event that an affiliate of the
Fund or its investment adviser is engaged in an activist campaign
with respect to a portfolio company, the Fund may be foreclosed
from taking certain actions with respect to that company as a
result of prohibitions on engaging in joint transactions with
affiliates under Section 17(d) of the 1940 Act or as a result of
other regulatory or fiduciary concerns. The Fund is considered to
be non-diversified, which means that it 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
the Fund’s volatility.
TCW Compounders ETF (GRW) seeks to invest in the
companies that the Adviser believes will benefit from
transformation as a result of technological innovations, market
dynamics, and/or changes in client preferences. The Fund’s
investment objective is long-term growth of capital. The Fund is
actively managed and may be susceptible to an increased risk of
loss, including losses due to adverse events that affect the Fund’s
investments more than the market as a whole, to the extent that the
Fund’s investments are concentrated in the securities of a
particular issuer or issuers, country, group of countries, region,
market, industry, group of industries, sector or asset class. The
Fund’s may purchase and write put and call options on futures
contracts that are traded on an exchange as a hedge against changes
in value of its portfolio securities, or in anticipation of the
purchase of securities, and may enter into closing transactions
with respect to such options to terminate existing positions. There
is no guarantee that such closing transactions can be effected.
TCW Compounders (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. Changes to government
regulations, interest rates, or general economic conditions may
detrimentally affect the Fund because of the Fund’s investments in
the financial services sector. Active ownership can take any of
several forms, including proxy battles, publicity campaigns, and
negotiations with management. In the event that an affiliate of the
Fund or its investment adviser is engaged in an activist campaign
with respect to a portfolio company, the Fund may be foreclosed
from taking certain actions with respect to that company as a
result of prohibitions on engaging in joint transactions with
affiliates under Section 17(d) of the Investment Company Act of
1940, as amended (“1940 Act”), or as a result of other regulatory
or fiduciary concerns. The Fund is considered to be
non-diversified, which means that it 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 the
Fund’s volatility.
TCW Transform Systems ETF (NETZ) is actively managed and
may be susceptible to an increased risk of loss, including losses
due to adverse events that affect the Fund’s investments more than
the market as a whole, to the extent that the Fund’s investments
are concentrated in the securities of a particular issuer or
issuers, country, group of countries, region, market, industry,
group of industries, sector or asset class. Shares are subject to
the risks of an investment in a portfolio of equity securities in
an industry or group of industries in which the Fund invests.
Investments in emerging market countries may be subject to greater
risks than investments in developed countries. The Fund may
purchase and write put and call options on futures contracts that
are traded on an exchange as a hedge against changes in value of
its portfolio securities, or in anticipation of the purchase of
securities, and may enter into closing transactions with respect to
such options to terminate existing positions. There is no guarantee
that such closing transactions can be effected.
Transform Systems ETF is a non-diversified management investment
company under the 1940 Act. Diversification does not assure a
profit or protect against a loss in a declining market. It’s not
possible to invest in an index. An outbreak of an infectious
respiratory illness, COVID-19, has resulted in significant economic
impacts. Other infectious illness outbreaks in the future may
result in similar or other impacts.
The Adviser considers environmental and governance risk factors
as part of its investment process, particularly in considering the
ways in which each company’s externalities, and the management of
these factors, could ultimately drive financial performance. The
Adviser does not use aggregated environmental or governance ratings
or rankings to exclude specific companies or sectors from
investment, but instead generally uses its own proprietary analysis
of each company’s specific externalities to make better informed
decisions. The Adviser generally estimates these externalities
using data from the companies themselves, and publicly available
data sources (e.g., Bloomberg, Economic Policy Institute,
Environmental Protection Agency (EPA), International Council on
Clean Transportation (ICCT), Federal Reserve Economic Data, MIT
Living Wage Calculator, US Department of Agriculture (USDA), U.S.
Bureau of Labor Statistics, U.S. Department of Transportation, U.S.
Energy Information Administration).
TCW Transform Supply Chain ETF (SUPP) is subject to the
following risks: Supply Chain Risks. Companies supply chains are
generally subject to risk such as legislative or regulatory
changes; adverse market conditions and/or increased competition;
technological developments and changing technology; cyberattacks
that may compromise a company’s operations or business; occasional
sharp price movements which may result from changes in the economy,
fuel prices, labor agreements, exchange rate movements, and
insurance costs; pandemics, natural disasters or other crisis;
boarder and/or import controls; pent-up /increased demand; mobility
restrictions; shortages of product and labor; dependence on
intellectual property rights, and potential loss or impairment of
those rights; research and development costs; and rapid product
obsolescence. Global, regional, or local events, such as changes to
trade relations, trade restrictions, and/or military conflict, may
materially disrupt or indefinitely impair the operations of these
companies. Activism Risk. An activist investor uses an equity stake
in a corporation to put public pressure on a company’s management
team and board in order to achieve certain objectives such as the
increase of shareholder value through changes in corporate policy
or financing structure, or reduction of expenses.
Non-Diversification Risk. The Fund is considered to be
non-diversified, which means that it may invest more of its assets
in the securities of a single issuer or a smaller number of issuers
than if it were a diversified fund. Limited History of Operations
Risk. The Fund is a new fund with no history of operations for
investors to evaluate. Emerging Markets Risk Investments in
securities and instruments traded in developing or emerging
markets, or that provide exposure to such securities or markets,
can involve additional risks relating to political, economic, or
regulatory conditions not associated with investments in U.S.
securities and instruments. Sustainability Investing Strategy Risk.
The Adviser considers environmental and governance risk factors as
part of its investment process, particularly in considering the
ways in which each company’s externalities, and the management of
these factors, could ultimately drive financial performance. The
Adviser does not use aggregated environmental or governance ratings
or rankings to exclude specific companies or sectors from
investment, but instead generally uses its own proprietary analysis
of each company’s specific externalities to make better informed
decisions. The Adviser generally estimates these externalities
using data from the companies themselves, and publicly available
data sources (e.g., Bloomberg, Economic Policy Institute,
Environmental Protection Agency (EPA), International Council on
Clean Transportation (ICCT), Federal Reserve Economic Data, MIT
Living Wage Calculator, US Department of Agriculture (USDA), U.S.
Bureau of Labor Statistics, U.S. Department of Transportation, U.S.
Energy Information Administration).
TCW Transform 500 ETF (VOTE) is not actively managed, and
the Adviser generally does not attempt to take defensive positions
under any market conditions, including declining markets. This Fund
may be subject to tracking error, which is defined as the
divergence of the Fund’s performance from that of the underlying
index. At any given time, the Fund can have exposure to derivative
instruments.
TCW Transform 500 ETF is a diversified management investment
company under the 1940 Act. Diversification does not assure a
profit or protect against a loss in a declining market. It’s not
possible to invest in an index. An outbreak of an infectious
respiratory illness, COVID-19, has resulted in significant economic
impacts. Other infectious illness outbreaks in the future may
result in similar or other impacts.
Please see each Fund’s Prospectus for more information on these
and other risks.
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