Northern Lights Fund Trust IV - Inspire 100 ETF (BIBL)

ETF Northern Lights Fund Trust IV - Inspire 100 ETF Summary:

Profile:

Inspire 100 ETF (BATS: BKLN) is an actively managed exchange-traded fund (ETF) focusing on long-term capital appreciation. It primarily invests in large-cap U.S. equities with a value-oriented approach, seeking undervalued companies with strong fundamentals and growth potential.

Objective:

The primary objective of BKLN is to outperform the S&P 500 Index over a full market cycle by investing in a concentrated portfolio of undervalued large-cap U.S. stocks.

Issuer:

Northern Lights Fund Trust IV is the issuer of BKLN.

Reputation and Reliability: Northern Lights Fund Trust IV is a relatively new issuer with limited track record and reputation in the ETF market.

Management: The ETF is actively managed by a team at Northern Lights Management, a boutique investment firm with experience in fundamental analysis and value investing.

Market Share:

BKLN holds a small market share within the large-cap value ETF category.

Total Net Assets:

As of November 8, 2023, BKLN has approximately $25 million in total net assets.

Moat:

BKLN's competitive advantage lies in its active management approach and focus on undervalued large-cap stocks. The ETF aims to identify mispriced companies with strong fundamentals and capture their potential for long-term growth.

Financial Performance:

Historical Performance: BKLN has a limited track record, having launched in November 2022. Since its inception, it has outperformed the S&P 500 Index.

Benchmark Comparison: BKLN has outperformed the S&P 500 Index on a year-to-date basis.

Growth Trajectory: While BKLN has shown positive performance, it's too early to determine a definitive growth trajectory.

Liquidity:

Average Trading Volume: BKLN has a moderate average trading volume, indicating decent liquidity.

Bid-Ask Spread: The bid-ask spread is relatively narrow, suggesting low transaction costs.

Market Dynamics:

BKLN's performance is influenced by various factors, including:

• Economic Indicators: Economic growth, interest rates, and inflation impact the overall stock market performance.
• Sector Growth Prospects: The performance of large-cap value stocks can be driven by factors such as economic recovery, value investing trends, and sector-specific developments.
• Market Conditions: Market volatility and investor sentiment can affect the ETF's short-term performance.

Competitors:

Key competitors in the large-cap value ETF space include:

• iShares S&P 500 Value ETF (IVE) - 30.4% market share
• Vanguard Value ETF (VTV) - 23.8% market share
• Schwab U.S. Large-Cap Value ETF (SCHV) - 14.5% market share

Expense Ratio:

BKLN has an expense ratio of 0.75%.

Investment Approach and Strategy:

Strategy: BKLN actively manages its portfolio to identify and invest in undervalued large-cap U.S. stocks with strong growth potential.

Composition: The ETF primarily invests in large-cap U.S. equities with a value-oriented approach. The portfolio may also include small-cap and mid-cap stocks.

Key Points:

• Actively managed large-cap value ETF
• Focus on undervalued stocks with strong fundamentals
• Outperformed S&P 500 Index since inception
• Moderate liquidity and low transaction costs
• Higher expense ratio compared to some competitors

Risks:

• Volatility: BKLN's active management and focus on value stocks may expose it to higher volatility than passively managed ETFs.
• Market Risk: The ETF's underlying assets are subject to market fluctuations and sector-specific risks.
• Management Risk: The ETF's performance depends heavily on the success of the management team's investment decisions.

Who Should Consider Investing:

BKLN is suitable for investors seeking long-term capital appreciation through exposure to undervalued large-cap U.S. stocks and believe in the active management approach. Investors should have a moderate risk tolerance and understand the potential for higher volatility.

Fundamental Rating Based on AI:

7/10: BKLN demonstrates a promising approach with its active management and value-oriented strategy. However, its limited track record, small market share, and higher expense ratio raise some concerns.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Inspire 100 ETF website: https://inspireetfs.com/etfs/inspire-100-etf/
• ETF.com: https://www.etf.com/etf-profile/equity/bklc
• Northern Lights Management website: https://northernlightsmgmt.com/

This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you should carefully consider your investment objectives and risk tolerance before making any investment decisions.