The Sarmaya Thematic ETF is an actively managed ETF that does not mechanically track a separate index. Instead, it selects investment themes based on the manager's judgment about the macro environment and market cycles. It uses domestic and international stocks and exchange-traded products to build exposure to the chosen themes and related areas.

It suits investors who want to understand how holdings change with shifts in market themes and management decisions, and who want equity exposure that differs in character from broad market indexes.

This is an ETF run with an active (actively managed) approach by Sarmaya.

The product reviews a range of factors, including the macro environment, growth outlook, valuations, and monetary and fiscal conditions, to determine market themes. It then holds domestic and international stocks and exchange-traded products tied to those themes. Because the portfolio can change with the manager's judgment, theme selection and security selection skills have a greater impact than tracking error.

• Non-index-tracking structure
• Flexible holdings that adapt to theme changes

Assets under management (AUM) stand at $67.2M, and the total expense ratio (Expense Ratio) is 0.79% per year.

The Sarmaya Thematic ETF is a micro-cap ETF, so its trading conditions and bid-ask spreads may be more limited than those of large ETFs. When placing orders, check trading volume and the bid-ask spread. For long-term holdings, it is also wise to consider the management fee and the possibility of indirect costs from underlying products.

Return patterns depend heavily on the selected market theme and the performance of the individual assets within it. If the fund holds areas that are sensitive to the economic cycle, inflation, and supply conditions, such as energy, metals, and commodities, it may show volatility patterns different from the general stock market, and performance gaps can widen during theme transitions.

Fund flows into thematic active ETFs are influenced by market participants' theme preferences and perceptions of volatility. Inflows may appear when interest in a particular theme rises, but fund flows and trading conditions can change quickly if the macro environment or geopolitical variables shift.

Active management that can respond to theme changes is a strength, but a non-diversified structure and dependence on themes and management judgment are risk factors.

In the comparison table, the FWD ETF focuses more on growth themes, the FEOE ETF on international stocks, and the INFL ETF on assets that benefit from inflation. These ETFs differ in management fees, asset size, distribution characteristics, and management style, so they should be compared on theme fit and trading conditions together rather than on simple past performance. Because information on additional listed products that could be called direct substitutes is limited, it is appropriate to check the product structure and actual holdings in the comparison table.

When looking at the Sarmaya Thematic ETF, first examine how much management judgment affects results, unlike index-tracking products. You need to confirm what the theme is, how the holdings change, and whether trading conditions and the distribution policy fit your investment horizon.

A non-diversified structure and theme concentration can strongly reflect price movements in certain assets or industries. When the fund uses international stocks and exchange-traded products, factors such as exchange rates, underlying assets, and indirect costs may also come into play, and you should consider the possibility that management judgment diverges from market conditions.

The Sarmaya Thematic ETF is an active ETF that seeks to capture long-term theme shifts. Because it relies on management judgment rather than fixed index exposure, it is appropriate to approach it after checking the current theme, holdings structure, micro-cap trading conditions, and annual distribution policy, rather than comparing it only in the same way as a broad index ETF.