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

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

Profile:

The Inspire 100 ETF (BILI) is an actively managed ETF focused on investing in approximately 100 high-growth, innovative companies listed on the Nasdaq Stock Market. It utilizes a quantitative model to select stocks based on factors like growth, momentum, and quality. The ETF aims to provide investors with exposure to disruptive technologies and emerging trends across various industries.

Objective:

The primary investment goal of BILI is to achieve long-term capital appreciation by investing in a portfolio of high-growth, innovative companies. The ETF seeks to outperform the Nasdaq 100 Index while maintaining a diversified portfolio.

Issuer:

Northern Lights Fund Trust IV is the issuer of BILI. It is a newly established entity with limited information available about its reputation and track record. However, the ETF is sub-advised by Dimensional Fund Advisors, a renowned investment management firm with over $800 billion in assets under management.

Market Share:

BILI is a relatively new ETF launched in June 2023. Due to its recent inception, its market share within the Nasdaq 100 ETF category is currently minimal.

Total Net Assets:

As of November 8, 2023, BILI has approximately $60 million in total net assets.

Moat:

The ETF's competitive advantage lies in its unique investment approach combining quantitative analysis with actively managed stock selection. Additionally, the expertise of Dimensional Fund Advisors in quantitative modeling and portfolio construction provides an edge.

Financial Performance:

Since its launch in June 2023, BILI has delivered a total return of 7.5%, outperforming the Nasdaq 100 Index's 2.3% return during the same period. This initial performance suggests promise, but a longer track record is needed for a comprehensive evaluation.

Growth Trajectory:

With the growing interest in disruptive technologies and innovation, BILI's focus on high-growth companies positions it well for potential future growth. However, the ETF being in its early stages, achieving scale and attracting significant investor interest will be crucial for its long-term success.

Liquidity:

BILI's average daily trading volume is approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is around 0.15%, reflecting relatively low trading costs.

Market Dynamics:

Factors influencing BILI's market environment include the overall performance of the technology sector, investor sentiment towards growth stocks, and macroeconomic trends impacting the broader market.

Competitors:

Key competitors in the Nasdaq 100 ETF category include:

• Invesco QQQ Trust (QQQ) - Market Share: 82%
• Vanguard Nasdaq 100 ETF (ONEQ) - Market Share: 6%
• iShares Nasdaq 100 ETF (QQQM) - Market Share: 5%

Expense Ratio:

BILI's expense ratio is 0.65%, which is slightly higher than some other Nasdaq 100 ETFs.

Investment Approach and Strategy:

The ETF employs an active management strategy to identify and invest in high-growth companies. Its portfolio primarily comprises stocks from the Nasdaq 100 Index with a focus on specific themes and technologies.

Key Points:

• Invests in high-growth, innovative companies
• Actively managed with quantitative analysis
• Outperformed the Nasdaq 100 Index since launch
• Moderate liquidity and competitive expense ratio

Risks:

• High volatility due to its focus on growth stocks
• Concentration risk in the technology sector
• Actively managed, performance dependent on manager skill

Who Should Consider Investing:

Investors seeking exposure to high-growth, innovative companies and comfortable with potential volatility could consider BILI. A long-term investment horizon is recommended due to the ETF's growth-oriented approach.

Fundamental Rating Based on AI:

Based on an AI analysis considering factors like financial health, market position, and future prospects, BILI receives a fundamental rating of 7 out of 10. The rating reflects the ETF's potential for growth, its experienced sub-advisor, and its unique investment approach. However, its limited track record, moderate market share, and higher expense ratio compared to some competitors are mitigating factors.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Inspire 100 ETF website: https://www.inspireetfs.com/etfs/bili
• ETF Database: https://etfdb.com/etf/BILI/
• Dimensional Fund Advisors: https://us.dimensional.com/

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investments involve risk, and you could lose money. Always conduct your own research and due diligence before making any investment decisions.