The Lazard Equity Megatrends ETF (THMZ) seeks to capture long-term structural growth opportunities by investing in companies positioned to benefit from transformative global trends. This thematic equity ETF focuses on megatrends such as demographic shifts, technological disruption, resource scarcity, and climate change across developed and emerging markets.
How It Works
THMZ employs an actively managed approach using Lazard's fundamental research to identify companies benefiting from secular megatrends rather than cyclical themes. The portfolio construction process combines top-down thematic identification with bottom-up stock selection, focusing on companies with sustainable competitive advantages within their megatrend exposure. Holdings are typically concentrated in 40-80 positions across multiple sectors and geographies, with quarterly rebalancing based on evolving thematic opportunities and individual company fundamentals.
Key Features
- Active management by Lazard's experienced team leveraging decades of global equity research and thematic investing expertise
- Concentrated portfolio targeting structural growth themes rather than traditional sector or geographic classifications for differentiated exposure
- Recently launched with 0.00% expense ratio, though this promotional rate will likely increase after initial period
Risks
- This ETF can lose significant value if thematic investment trends fail to materialize or become overvalued, potentially underperforming broader markets for extended periods
- Concentrated portfolio of 40-80 holdings creates higher individual stock risk compared to diversified index funds, amplifying volatility during market stress
- Active management and thematic focus may result in style drift or sector concentration that doesn't align with investor expectations during different market cycles
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for growth-oriented investors with 7+ year time horizons and high risk tolerance. Appropriate for investors seeking exposure to transformative global trends beyond traditional sector classifications. Requires patience for thematic strategies to develop and comfort with active management decisions.