It is an active ETF that invests in quality companies selected through fundamental analysis from developed and emerging market stocks outside the US. It considers both growth and value, and actively holds securities with a long-term perspective.

It suits investors who want to invest long term in non-US foreign stocks through active selection rather than simple index tracking.

It is an ETF managed by Thornburg using an active management approach.

Targeting developed and emerging market stocks outside the US, the fund selects quality companies based on fundamental analysis, considering both growth and value. Instead of simply tracking an index, the management team evaluates each company's business and financials to pick securities, and it pursues excess returns in foreign stocks through active selection.

• Fundamentals-based selection of foreign stocks
• Management that considers both growth and value

Assets under management (AUM) stand at $576.7M, and the total expense ratio is 0.65% per year.

Compared with general foreign stock ETFs such as FNDF and GSIE, the active selection approach and the portfolio composition are the main points of comparison.

Foreign stocks move depending on global risk appetite, the strength or weakness of the dollar, economic conditions in each country, and style rotation, and an active selection strategy can show performance gaps versus the market average depending on the management team's stock decisions. Because of its large foreign weighting, exchange rate fluctuations also affect performance.

Fund flows into foreign stocks diverge depending on global risk appetite and currency trends, and when interest in active foreign strategies rises, money sometimes moves into related product groups. It is also worth noting that performance varies with economic conditions and currency variables in each country.

Fundamentals-based active selection and foreign diversification are its strengths, while reliance on the manager, exchange rates, and regional economic risk are considerations.

For broad developed market exposure outside the US without a value criterion, direct substitutes include EFA and VEA, and for investing in developed foreign markets at a lower fee, products such as IEFA are also worth comparing. The three products shown in the table, FNDF, GSIE, and IGF, differ in selection criteria and exposure, covering foreign fundamental and factor stocks as well as global infrastructure. This ETF is differentiated by its fundamentals-based active selection of foreign stocks.

These are the points to review before investing in TXUE. Active selection is the appeal, but reliance on the manager, exchange rates, and regional economic risk need to be checked in advance. It is also a good idea to compare it with broad developed market products outside the US.

The management team's stock selection results, exchange rate fluctuations, and economic slowdowns in individual countries are the main variables for short-term performance, and an active strategy can diverge from the market average depending on the period. Because of the large foreign weighting, currency movements also affect returns.

It is a suitable candidate for long-term investors who want to invest in non-US foreign stocks through fundamentals-based active selection. If low-cost passive foreign exposure is the priority, products such as EFA and VEA fit better, and if you trust active foreign selection, it is advisable to compare this product alongside them before choosing.