TCW to Change Listing Exchange of ETFs to NYSE
The TCW Group, a global asset management firm, announced the relocation of five ETFs from their current exchanges to the New York Stock Exchange (NYSE) effective May 30, 2024. The ETFs involved are TCW Transform 500 ETF (VOTE), TCW Transform Systems ETF (NETZ), TCW Transform Supply Chain ETF (SUPP), TCW Artificial Intelligence ETF (AIFD), and TCW Compounders ETF (GRW). The move aims to provide better trading technology, human oversight, tighter spreads, larger quoted size trades, and additional liquidity. Shareholders are not expected to be impacted, and no action is required from them.
- Enhanced trading technology and human oversight by listing on NYSE.
- Potential for improved market quality through tighter spreads and larger quoted size trades.
- Increased liquidity for ETFs upon moving to NYSE.
- No anticipated impact on shareholders and no action required from them.
- Maintaining the same ticker symbols for all ETFs.
- Potential short-term disruption during the transition period.
- Possible costs associated with the change in listing exchange.
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
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
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),
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
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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Investor Contact:
Tel: 800-386-3829
Media Contact:
Doug Morris
Head of Corporate Marketing and Communications
Tel: 213-244-0509
Source: The TCW Group
FAQ
When will TCW ETFs be listed on the NYSE?
Which TCW ETFs are changing their listing exchange?
Why are TCW ETFs moving to the NYSE?
Do shareholders need to take any action due to the TCW ETFs' listing change?
Will the ticker symbols of TCW ETFs change after listing on the NYSE?
