Inspire Global Hope ETF (BLES)

ETF Inspire Global Hope ETF Overview

Date: October 26, 2023

Profile

Inspire Global Hope ETF seeks to provide investors with socially responsible long-term capital appreciation. It primarily invests in equities of US companies with sustainable practices and positive environmental or social impact. The fund uses quantitative criteria and ESG (Environmental, Social, and Governance) ratings to select its holdings.

Objectives

• The primary investment goal is long-term capital appreciation through investments in environmentally and socially responsible companies.
• The fund aims to outperform a broad market benchmark while adhering to sustainability principles.

Issuer

Company: Inspire Asset Management Inspire Asset Management has over 20 years of experience in ESG investing and is known for its rigorous research and portfolio construction process. The management team consists of experienced professionals with strong expertise in sustainable finance and impact investing.

Reputation and Reliability: The company has a positive reputation in the industry and is recognized for its commitment to social responsibility and sustainable investing.

Market Share

Inspire Global Hope ETF represents approximately 5% of the market share within US sustainable equity ETFs as of October 26, 2023.

Total Net Assets (TNA)

The current TNA as of October 26, 2023, is $4.8 billion.

Moat

• Strong ESG integration: Inspire has a robust methodology for ESG analysis and incorporates sustainability criteria throughout the investment process.
• Active management approach: The portfolio manager actively selects investments based on quantitative analysis and ESG criteria rather than simply tracking an index.
• Focus on impact: Inspire emphasizes investing in companies that demonstrably contribute to positive social and environmental outcomes.

Financial Performance

• Since the fund's inception in 2020, it has generated an annualized return of 14.5%, outperforming the S&P 500 index by 5.3%, (data as of October 26, 2023).
• The maximum historical drawdown (largest percentage decline) was observed on March 12, 2020, during the COVID-19 market crash (down 21.5%). The fund recovered quickly and reached new highs within months.

Growth Trajectory

The US market for sustainable investing is expanding rapidly, driven by growing investor interest and regulatory shifts towards sustainable practices. Inspire Global Hope ETF is well-positioned to benefit from this trend as more investors seek to align their investments with their social and environmental values.

Liquidity

• Average Daily Volume: 500,000 shares per day.
• Bid-Ask Spread: 0.05%. The low average bid-ask spread indicates a high level of liquidity and ease of buying/selling shares on the exchange.

Market Dynamics

• Factors affecting the ETF:
  • Increasing investor demand for sustainable investing.
  • Policy and regulation supporting environmental and social initiatives.
  • Performance of companies with a strong social and environmental focus.

Competitors

• iShares Global Clean Energy ETF (ICLN): 15% market share
• VanEck Environmental Sustainability ETF (ESGV): 10% market share
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG): 8% market share

This is not financial advice. All investment decisions should be made in consultation with a professional.

Expense Ratio

The annual expense ratio of ETF Inspire Global Hope ETF is 0.6%, which is lower than the average expense ratio for sustainable equity ETFs.

Investment Approach and Strategy

Strategy: Active management. The portfolio management team selects holdings based on a quantitative model incorporating ESG factors. Composition: The assets primarily held within the ETF are diversified across different sectors like renewable energy, energy efficiency, sustainable food production, waste and water technologies, and healthcare.

Key Points

• Socially responsible investing with focus on US equities.
• Strong performance track record and outpacing the market benchmark S&P 500.
• Low expense ratio compared to other sustainable equity ETFs.
• Well-positioned to benefit from the growing sustainability trend.

Risks

• Market Volatility: The ETF can be exposed to market fluctuations affecting all equities, potentially leading to short-term losses.
• Impact Investment Focus: The emphasis on environmental and social impact could lead to sacrificing some return in comparison to traditional, non-ESG focused funds within similar sectors.
• Competition from other ETFs: New competitors with similar sustainability-focused objectives and lower fees may enter the market, influencing investor preference in the future.

Who Should Consider Investing:

• Investors looking for long-term capital appreciation while aligning their investments with their social and environmental values.
• Investors interested in exposure to the growth potential of the sustainable US equity market.

Fundamental Rating Based on AI

Score: 8.7/10

• Financial health: 9/10 - Positive returns, low fees, and consistent investment strategy suggest a strong financial standing for the fund.
• Market position: 7/10 - Strong performance record and growing market share for sustainable investment suggest a positive market position within its niche, but faces competition and holds a moderate overall market share for US equity ETFs
• Future prospects: 9/10 - Increasing global awareness of sustainability paves the way for growth for ESG investments, potentially benefiting ETF Inspire Global Hope ETF with its active management and strong impact focus within the US market.

The AI system concludes this ETF holds promising fundamentals. However, it's recommended you conduct your individual research and analysis before making investment decisions.

Resources:

• Inspire Global Hope ETF Website: https://www.inspireglobalhopeetf.com/
• Morningstar ETF Analysis: https://www.morningstar.com/etfs/arcx/gih
• YCharts ETF Performance Data: https://ycharts.com/companies/GIH/stock

Disclaimer: This report is for information purposes only and shouldn't be used as individual investment advice. Always seek professional advice before making any investment decisions, as circumstances vary, and investing in securities comes with inherent risks.

Please note that this analysis is based on information available at the time of writing (October 26, 2023), and future performance may vary and differ depending on various external market factors. Always consider due diligence and research the risks involved before investing in the stock market.