TimesSquare Brings 'Growth With A Conscience' To Mid-Caps With New Active ETF

TimesSquare Capital Management and Tidal Financial Group launched the TimesSquare Quality Mid Cap Growth ETF (NASDAQ:TSCM) on Tuesday. This marks the active manager's latest effort to turn its long-standing mid-cap growth strategy into an ETF.

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TSCM is an actively managed U.S. mid-cap growth ETF that uses a bottom-up, research-intensive approach to selecting stocks.

Instead of following trends or popular themes, the strategy aims to find companies with reliable growth traits and sensible valuations. This is what TimesSquare calls "Growth with a Conscience." In simpler terms, growth is good, but it shouldn't come at any cost.

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The ETF will typically hold between 30 and 40 stocks, which makes it a more focused portfolio compared to many passive mid-cap benchmarks. According to the firm, stocks are chosen based on four main criteria: strong management teams, sustainable competitive advantages, consistent performance and attractive valuations compared to competitors.

The fund is presented in what the firms describe as a clear and tax-efficient ETF structure. This approach is popular among active managers who want to connect with investors where they already trade.

Valuation discipline is a major point TimesSquare emphasizes, especially in a market where growth stocks, particularly in the mid-cap segment, can fluctuate sharply due to changes in interest rates, earnings expectations or investor sentiment.

The firm states that valuation is important not just when initiating positions, but also when deciding to sell them.

The launch occurs as active equity ETFs gain popularity, particularly in areas like mid-cap growth, where many believe that fundamental research and stock selection can generate better returns than broad indexes.

With TSCM, the 25-year-old firm is betting that its disciplined growth approach will shine in a crowded ETF market filled with passive options and trend-driven active offerings.

Whether "growth with a conscience" will attract investors is a discussion for another time. For now, in a mid-cap space known for both opportunities and volatility, TimesSquare is clearly positioning TSCM as a strategy that seeks growth while remembering fundamental values.

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