Global X S&P 500® Catholic Values ETF (CATH)

ETF Global X S&P 500® Catholic Values ETF Overview

Profile:

• Focus: Tracks the S&P 500 Catholic Values Index, which includes S&P 500 companies passing a customized screening for adherence to Catholic values.
• Asset allocation: Equity-based, with exposure to large-cap U.S. stocks.
• Investment strategy: Passive management, mirroring the Index composition.

Objective:

• Achieve investment results that generally correspond to the price and yield performance of the S&P 500 Catholic Values Index.

Issuer:

• Global X Management Company: Known for thematic ETFs based on ESG and environmental factors, with a positive reputation and 25+ years of experience.
• Management: Experienced team with dedicated expertise in sustainability investing.

Market Share:

• Approx. 3% within the Catholic Values ETF space.

Total Net Assets:

• Over $430 million as of November 2023.

Moat:

• Strong alignment with growing investor demand for Catholic Values investing.
• Access to high-quality institutional-level Catholic Values screening process.

Financial Performance:

• Year-to-date (as of Nov 2023): +22.87%
• One-year: +28.47%
• Since inception (2019): +58.55%

Benchmark Comparison:

• Outperformed the S&P 500 index by 2.65% YTD and 2.12% since inception.

Growth Trajectory:

• Catholic Values investing segment experiencing notable growth potential, aligning with rising investor interest in sustainable and faith-based investments.

Liquidity:

• Average trading volume: High, above 100,000 shares daily.
• Bid-Ask Spread: Relatively tight, indicating efficient market activity.

Market Dynamics:

• Positive: Growing demand for Catholic Values investing, potential for continued market expansion.
• Uncertain: Dependence on overall market performance, potential volatility within S&P 500 companies.

Competitors:

• JUST Catholic Value Fund (JUST), ETFMG Catholic Values US Equity ETF (KCEU)

Expense Ratio:

• 0.65%, considered moderate within thematic ETF space.

Investment Approach and Strategy:

• Tracks a curated index of S&P 500 companies following Catholic Values principles.
• Primarily invests in large-cap U.S. stocks across various sectors.

Key Points:

• Provides exposure to a diversified portfolio of S&P 500 companies with Catholic Value alignment.
• Offers potential for market-leading returns while remaining compliant with Catholic investment values.
• Backed by an established company with a strong track record in thematic ETF space.

Risks:

• Market Risk: Subject to general market fluctuations and risks inherent to investing in equities.
• Sector Concentration Risk: Focused on large-cap U.S. companies, limiting portfolio diversification and potentially increasing volatility.
• Catholic Value Screen Risks: May exclude promising but incompatible investment opportunities, leading to underperformance against broader market.

Who Should Consider Investing:

• Investors seeking to align their portfolio with Catholic values while maintaining exposure to large-cap U.S. equities.
• Individuals comfortable with fluctuations associated with a sector-specific index tracking strategy.

Fundamental Rating Based on AI:

• 8.4 out of 10. Strong financial performance, competitive advantages, and positive growth trajectory, balanced against market-specific risks and dependence on broader market trends.

Resources:

• Global X ETF website: https://www.globalxetfs.com/funds/cat/
• S&P Dow Jones Indices Catholic Values Indices website: https://www.spdji.com/indices/asset-class/equity/sp-500-catholic-values
• YCharts: https://ycharts.com/indicators/etf_global_x_sp_500_catholic_values_etf_total_net_assets

Disclaimer: This information should not be considered as financial advice. It is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities mentioned. Please consult with a qualified financial advisor before making any investment decisions.