TXUE’s 3-Fold Approach to International Investing

Advisors and investors flooded into global ex-U.S. equities in July as U.S. tariff volatility and policy uncertainty persisted. For those investors looking to augment their overseas exposures, the Thornburg International Equity ETF (TXUE) offers a trifecta approach to active investing.

A host of challenges for U.S. equities resulted in investors increasingly looking for opportunity abroad. Reuters reported that global ex-U.S. equity funds experienced significant inflows in July, the largest in almost five years. Tariff risk, the declining dollar, and better growth opportunities led to a divestment of U.S. equity funds and an uptake in international. As these risks persist, international equities appear favorably positioned in the second half.

Investors seeking opportunity abroad would do well to consider the actively managed TXUE. The fund’s strategy offers broad access to developed markets, primarily outside the U.S. As of June 30, 2025, TXUE offers differentiated sector exposure compared to the benchmark MSCI EAFE Index.

The Thornburg International Equity ETF (TXUE) invests opportunistically in a concentrated portfolio of predominantly large-cap, undervalued companies that demonstrate the potential for long-term growth. The fund also seeks reliable risk-adjusted returns by investing across three equity style baskets.

The portfolio managers construct the portfolio using bottom-up analysis. Companies selected demonstrate strong fundamentals, but with a market price that the managers don’t believe reflects the intrinsic value. This may be due to current market sentiment towards the company or industry. Sentiment may be shaped by a number of factors that include interest rates, inflation, economic, fiscal, and monetary policies, geopolitics, and more.

TXUE’s strategy selects stocks across three different style baskets: basic value, consistent earners, and emerging businesses. Companies from the basic value basket are generally cyclical, with greater economic sensitivity. As economic conditions improve, these companies may appreciate in value. The consistent earners bucket seeks to offer stability, with exposure to companies that generate reliable returns across market cycles. Finally, the emerging franchise buckets include companies with elevated growth potential. Innovative products or services may drive this growth, or the company taking an increasing market share.

By investing in companies from each category, the overall portfolio seeks to provide diversification and balance across investment styles. It also creates a portfolio designed with the capability to generate notable risk-adjusted returns across economic and market cycles.

TXUE carries an expense ratio of 0.65%.

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For current performance information, visit TXUE.

Important Information

For investment professional use only.

Before investing, carefully consider the Fund’s investment goals, risks, charges, and expenses. For a prospectus or summary prospectus containing this and other information, contact your financial advisor or visit thornburg.com. Read them carefully before investing.

Exchange Traded Funds (ETF) are bought and sold through exchange trading at market prices (not NAV) and are not individually redeemed from a Fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. 

Thornburg ETFs are actively managed and do not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund’s performance may suffer.

Investments carry risks, including possible loss of principal.

Thornburg ETFs are distributed by ALPS Distributors, Inc.

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