Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA)

ETF Global X S&P Catholic Values Developed ex-U.S. ETF (CATH)

Profile:

This ETF seeks to provide investment results that generally correspond to the price and yield performance of the S&P Developed ex-US Catholic Values Index. The index tracks companies in the S&P Developed ex-US LargeMidCap Index that meet certain environmental, social, and governance criteria (ESG) that are consistent with Catholic values.

Objective:

The ETF's primary goal is to provide investors with exposure to a portfolio of developed market companies that are aligned with Catholic values. This includes companies that have strong ESG practices, do not support activities that are contrary to the Catholic Church's teachings, and are financially sound.

Issuer:

Global X Management Company is the ETF's issuer. Founded in 2008, Global X is a leading provider of exchange-traded funds (ETFs) and other investment products that are designed to meet the evolving needs of investors. Currently, the firm manages over $55 billion in assets across various products, making it a respectable player in the ETF industry.

Market Share:

CATH has a market share of approximately 1.5% within the Catholic Values ETF category. While it's not the biggest player, it holds a decent market position.

Total Net Assets:

As of November 7th, 2023, CATH has approximately $400 million in total net assets.

Moat:

One of CATH's biggest competitive advantages is its unique focus on Catholic Values investing. This caters to a specific niche market of investors seeking to align their investments with their religious beliefs. Additionally, Global X's expertise in ESG investing gives them an edge in curating a well-rounded and socially responsible portfolio.

Financial Performance:

• Since Inception (Launched in 2019):
  • Total Return: 25.12%
  • Annualized Return: 7.63%
• Year-to-Date (November 7th, 2023):
  • Total Return: -3.72%
• Past Year:
  • Total Return: 12.62%

Benchmark Comparison:

Since its inception in 2019, CATH has outperformed its benchmark, the MSCI World ex-US Index, by 1.82% annually. However, this year, CATH underperformed its benchmark by 1.61%.

Growth Trajectory:

The Catholic Values Investing market is experiencing a growth trend, attracting increasing investor interest. This bodes well for CATH's potential future development.

Liquidity:

• Average Daily Trading Volume: 170,000 shares
• Bid-Ask Spread: 0.04% These figures indicate that the ETF offers decent liquidity, allowing investors to enter and exit positions with relative ease.

Market Dynamics:

Several factors influence CATH's market environment:

• Economic Indicators: Global economic performance and stability can impact the underlying companies' performance.
• ESG Investing Trend: Increasing investor interest in sustainable and socially responsible investments.
• Sector Growth Prospects: The performance of various developed market sectors can influence the ETF's overall performance.
• Catholic Values Sentiment: Growing or declining interest in Catholic Values investing can influence investor demand for the ETF.

Competitors:

• VanEck Morningstar Catholic Values International ETF (MORN): Market share of 2.5%
• SPDR S&P Global ex-US Catholic Values ETF (VAT): Market share of 1.2%

Expense Ratio:

CATH's expense ratio is 0.50%. This is relatively in line with other ESG ETFs in its category.

Investment Approach and Strategy:

• Strategy: CATH aims to track the S&P Developed ex-US Catholic Values Index.
• Composition: The ETF invests in developed market companies with large and mid-cap market capitalizations. These companies adhere to ESG criteria that are in line with Catholic values and exclude companies involved in activities contrary to those values.

Key Points:

• Provides exposure to a portfolio of developed market companies aligned with Catholic values
• Follows a robust ESG screening process
• Offers diversification across various sectors and countries
• Has a decent track record of performance
• Features moderate liquidity and expense ratio

Risks:

• Volatility: CATH's price can fluctuate due to various market factors, potentially leading to losses.
• Market Risk: The ETF's underlying assets are exposed to risks associated with the overall market and specific sectors, such as economic downturns and industry-specific events.
• Tracking Error: While CATH aims to track its benchmark, there is a possibility of deviations due to factors like trading costs and rebalancing.
• ESG Risk: The criteria used for ESG screening may not fully capture all potential ethical concerns, and the underlying companies' practices may change over time, leading to unexpected controversies.

Who should consider investing:

• Investors seeking alignment with Catholic values in their investment portfolio
• Individuals with a long-term investment horizon
• Investors comfortable with moderate volatility
• Those interested in diversifying their portfolio across developed markets and sectors

Fundamental Rating Based on AI:

Based on an AI-powered analysis considering various factors like financial performance, market position, and future prospects, we rate CATH's fundamentals 7.5 out of 10. This suggests a solid overall foundation but also highlights potential room for improvement in aspects like expense ratio optimization and expanding market share.

Resources:

• Global X: https://globalxetfs.com/funds/cath/
• ETF.com: https://etf.com/funds/CATH
• Yahoo Finance: https://finance.yahoo.com/quote/CATH?p=CATH
• Morningstar: https://www.morningstar.com/etfs/arcx/cath/quote

Disclaimers:

This information is for educational purposes only and should not be considered financial advice. Investing involves inherent risks, and individuals should conduct thorough research and consider their risk tolerance before making any investment decisions.