Thornburg launches Premium Income Builder ETF (THOR)

Thornburg Investment Management launched the Thornburg Premium Income Builder ETF (THOR) on June 23. The actively managed ETF pairs dividend-paying global equities with option-writing strategies to generate income and carries an expense ratio of 79 basis points.

THOR will primarily invest in equity securities and employ option-writing techniques, including covered calls and put contracts on individual names and indexes, to harvest premiums. The strategy is not limited by market capitalization or geography and may include companies in developed and emerging markets. The fund can also hold a range of fixed income securities to add yield stability and provide downside resilience when managers determine it is appropriate.

Thornburg’s portfolio team uses a high-conviction, valuation-sensitive process to select businesses for the fund. The ETF is structured as non-diversified, giving managers discretion to concentrate capital in a smaller set of stocks they view as long-term holdings. Option premiums are intended to supplement dividend income and help smooth distributions while maintaining equity exposure for potential capital appreciation.

“We’re expanding how clients access Thornburg’s investment expertise through a growing lineup of actively managed ETFs built on the same fundamental research-driven, high-conviction approach that has defined our firm for decades,” Mark Zinkula, Thornburg’s chief executive, said. Matt Burdett, head of equities and a portfolio manager, added that THOR represents an expansion of the firm’s actively managed ETF platform aimed at meeting evolving client needs. Brian McMahon, vice chairman and chief investment strategist, described the fund’s approach as valuation-sensitive with a focus on balancing income generation, downside resilience, and long-term total return potential.

Thornburg presented THOR as an ETF version of its Thornburg Investment Income Builder Strategy, applying that income-focused approach within an exchange-traded format. The firm’s actively managed ETF platform has grown to nearly $760 million in assets since the first ETF launched about 18 months ago. The Thornburg International Equity ETF (TXUE) and the Thornburg Multi Sector Bond ETF (TMB) together account for more than $700 million of that total.