Thornburg Launches THOR ETF as Investors Seek High-Dividend Alternatives to Tech Giants

Thornburg Investment Management, managing approximately $60 billion in assets, recently launched THOR, an actively managed ETF. THOR focuses on global high-dividend stocks and flexible options strategies for income and defensive exposure. This launch occurs as the market reassesses valuations and concentration risks within the "Magnificent Seven" technology stocks. THOR aims to balance income generation, downside protection, and long-term capital appreciation, according to Brian McMahon, Thornburg Vice Chairman and CIO. The ETF invests in global dividend-paying equities and utilizes options strategies to enhance yield. Thornburg's ETF platform has grown to nearly $700 million in assets under management, up from $500-$600 million earlier this year. The move reflects a broader market shift as investors diversify away from large-cap technology stocks, including the "Magnificent Seven." Market observers note a rotation into international, small-cap, high-dividend, and utility stocks, driven by concerns over tech valuations and a search for more reasonably priced assets.