Touchstone Investments Debuts Emerging Markets ex-China Growth ETF to Gain Exposure Across Developing Markets

CINCINNATI--(BUSINESS WIRE)--Touchstone Investments, known for its Distinctively Active^® mutual funds and exchange traded funds (ETFs), today announced the launch of the Touchstone Sands Capital Emerging Markets ex-China Growth ETF (TEMX: CBOE), which begins trading on February 26, 2025.

The Touchstone Sands Capital Emerging Markets ex-China Growth ETF is an actively managed fund that seeks long-term capital appreciation through investments in emerging and frontier markets, excluding China and Hong Kong. The Fund maintains a focused portfolio of between 25 and 45 companies, offering exposure to regions with strong economic development prospects.

“As financial professionals and investors look for international opportunities, the Touchstone Sands Capital Emerging Markets ex-China Growth ETF marks our first active ETF that provides exposure to compelling growth opportunities in developing markets,” said Matt Barry, vice president, product management and head of capital markets at Touchstone Investments. “We look forward to leveraging Sands Capital’s deep expertise in emerging markets to offer clients a cost-efficient vehicle with a high-quality growth focus that seeks to achieve alpha.”

The Touchstone Sands Capital Emerging Markets ex-China Growth ETF marks Touchstone Investments’ second ETF sub-advised by Sands Capital, following the launch of the Touchstone Sands Capital US Select Growth ETF (TSEL) in January. TEMX builds on Touchstone’s long-standing relationship with Sands Capital and history of collaboration with highly skilled sub-advisers to develop product options for financial professionals and the clients they serve.

“We are proud to partner once again with Touchstone Investments to bring to market an active ETF focusing on innovative, high-quality companies with significant growth potential,” said Frank Sands, chief investment officer at Sands Capital. “This ETF offers investors the opportunity to gain geographic diversification across sectors and regions with strong growth drivers, identified through our long-term, research-driven investment strategy.”

For more information about the Touchstone Sands Capital Emerging Markets ex-China Growth ETF and the full suite of Touchstone’s ETF offerings, please visit: https://www.westernsouthern.com/touchstone/etfs

About Touchstone Investments

Touchstone's commitment to being Distinctively Active is what sets us apart. Recognizing that not all fund companies are created equal, we actively apply an integrated and rigorous approach for identifying and partnering with highly skilled asset managers who act in a sub-advisory capacity. Their expertise, disciplined investment processes and employment of active management provide the differentiation required for robust portfolio construction. Touchstone offers a full breadth of investment options across styles and asset classes, including U.S. equity, international equity, income and multi-asset funds. The Touchstone Funds are advised by Touchstone Advisors, Inc., a registered investment adviser, and are distributed nationally through intermediaries including broker-dealers, registered investment advisers, institutions and others by Touchstone Securities, Inc., a registered broker-dealer and member FINRA/SIPC. Touchstone, Touchstone Funds and Touchstone Investments are federal service mark registrations and applications owned by IFS Financial Services, Inc. Touchstone Securities, Inc., Touchstone Advisors, Inc., and IFS Financial Services, Inc., are members of Western & Southern Financial Group. For more information, please visit TouchstoneInvestments.com.

A Word About Risk

The Fund invests in equities which are subject to market volatility and loss. The Fund invests in stocks of large-cap companies which may be unable to respond quickly to new competitive challenges. The Fund invests in stocks of small- and mid-cap companies, which may be subject to more erratic market movements than stocks of larger, more established companies. The Fund invests in preferred stocks which are relegated below bonds for payment should the issuer be liquidated. If interest rates rise, the fixed dividend on preferred stocks may be less attractive, causing their price to decline.

The Fund may invest in equity-related securities to gain exposure to issuers in certain emerging or frontier market countries. These securities entail both counterparty risk and liquidity risk. The Fund invests in foreign, emerging and frontier markets securities, and depositary receipts, such as American Depositary Receipts, Global Depositary Receipts, and European Depositary Receipts, which carry the associated risks of economic and political instability, market liquidity, currency volatility and accounting standards that differ from those of U.S. markets and may offer less protection to investors. The risks associated with investing in foreign markets are magnified in emerging markets, and in frontier markets due to their smaller and less developed economies.

The Fund invests in growth stocks which may be more volatile than investing in other stocks and may underperform when value investing is in favor. The Adviser engages a sub-adviser to make investment decisions for the Fund’s portfolio; it may be unable to identify and retain a sub-adviser who achieves superior investment returns relative to other similar subadvisers. Events in the U.S. and global financial markets, including actions taken to stimulate or stabilize economic growth may at times result in unusually high market volatility, which could negatively impact Fund performance and cause it to experience illiquidity, shareholder redemptions, or other potentially adverse effects.

The sub adviser considers ESG factors that it deems relevant or additive along with other material factors. The ESG criteria may cause the Fund to forgo opportunities to buy certain securities and/or gain exposure to certain industries, sectors, regions and countries. The Fund may be required to sell a security when it could be disadvantageous to do so. The Fund is nondiversified, which means that it may invest a greater percentage of its assets in the securities of a limited number of issuers and may be subject to greater risks. The Fund may focus its investments in specific sectors and therefore is subject to the risk that adverse circumstances will have greater impact on the fund than on the fund that does not do so. Current and future portfolio holdings are subject to change.

Touchstone exchange-traded funds (ETFs) are actively managed and do not seek to replicate a specific index. ETFs are bought and sold through an exchange at the then current market price, not net asset value (NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV when traded on an exchange. Brokerage commissions will reduce returns. There can be no guarantee that an active market for ETFs will develop or be maintained, or that the ETF’s listing will continue or remain unchanged. The Adviser engages a sub-adviser to make investment decisions for the Fund’s portfolio; it may be unable to identify and retain a sub-adviser who achieves superior investment returns relative to other similar sub-advisers. The Fund in non-diversified and may focus its investments in specific sectors and therefore is subject to the risk that adverse circumstances will have greater impact on the fund than on the fund that does not do so. The Fund’s service providers are susceptible to cybersecurity risks that could result in losses to a Fund and its shareholders. Cybersecurity incidents could affect issuers in which a Fund invests, thereby causing the Fund’s investments to lose value. Current and future portfolio holdings are subject to change.

Please consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the Fund. To obtain a prospectus or a summary prospectus, contact your financial professional or download and/or request one at TouchstoneInvestments.com/resources or call Touchstone at 833.368.7383. Please read the prospectus and/or summary prospectus carefully before investing.

Touchstone ETFs are distributed by Foreside Fund Services, LLC
A registered broker-dealer and member FINRA
Not FDIC Insured | No Bank Guarantee | May Lose Value

Contacts

Prosek Partners for Touchstone Investments
pro-touchstone@prosek.com