Inspire Faithward Mid Cap Momentum ESG ETF (GLRY)

ETF Inspire Faithward Mid Cap Momentum ESG ETF (FTH)

Profile:

ETF Inspire Faithward Mid Cap Momentum ESG ETF (FTH) is an actively managed exchange-traded fund that invests in US mid-cap companies demonstrating strong momentum characteristics and adhering to biblical values. The ETF focuses on companies with above-average growth potential and ethical business practices.

Objective:

The primary goal of FTH is to achieve long-term capital appreciation by investing in a portfolio of mid-cap stocks exhibiting strong growth potential while aligning with biblical values.

Issuer:

** Inspire Investing LLC:** Inspire Investing is a faith-based investment management firm specializing in ESG (Environmental, Social, and Governance) investing. The company was founded in 2009 and has a strong track record of managing faith-based investment products.

** Reputation and Reliability:** Inspire Investing enjoys a positive reputation in the faith-based investing community. They have been recognized for their commitment to ethical investing and their track record of solid performance.

** Management:** The ETF is actively managed by a team of experienced investment professionals with extensive experience in analyzing and selecting stocks.

Market Share:

FTH represents a niche segment within the ESG investing space. While precise market share data is unavailable, the ETF stands out as a unique offering within the faith-based mid-cap momentum space.

Total Net Assets:

As of November 7, 2023, FTH has approximately $65 million in net assets.

Moat:

Unique Investment Approach: FTH combines a unique blend of momentum investing with faith-based principles, offering an attractive proposition for investors seeking both financial returns and alignment with their values.

Active Management: The ETF's active management approach allows for greater flexibility and potential to outperform the market compared to passively managed ESG funds.

Financial Performance:

Historical Performance: Since its inception in 2021, FTH has exhibited positive returns. However, its relatively short track record necessitates further observation before drawing definitive conclusions.

Benchmark Comparison: FTH has outperformed the Russell Midcap Growth Index, its benchmark, in recent periods.

Growth Trajectory:

The increasing demand for faith-based investing and the growing popularity of ESG investing suggest potential for further growth for FTH.

Liquidity:

Average Trading Volume: FTH's average daily trading volume is moderate, indicating reasonable liquidity.

Bid-Ask Spread: The bid-ask spread is relatively tight, suggesting low transaction costs when buying or selling the ETF.

Market Dynamics:

Positive factors affecting FTH include the rising popularity of ESG investing and increasing demand for faith-based investment options. Potential headwinds could include broader market volatility and competition from other ESG-focused funds.

Competitors:

• iShares ESG Aware MSCI USA Mid Cap ETF (ESGU)
• SPDR S&P MidCap 400 ESG ETF (MDYG)
• Xtrackers MSCI USA Mid Cap ESG Leaders Equity ETF (USSG)

Expense Ratio:

The expense ratio for FTH is 0.75%, which is considered average for actively managed ESG ETFs.

Investment Approach and Strategy:

Strategy: FTH employs an active management strategy focused on identifying mid-cap companies with strong momentum characteristics and alignment with biblical values.

Composition: The ETF invests primarily in mid-cap stocks across various sectors, with a focus on companies demonstrating strong growth potential and ethical business practices.

Key Points:

• Actively managed ETF focusing on mid-cap companies with strong momentum.
• Aligns investments with biblical values.
• Outperformed its benchmark index in recent periods.
• Moderate liquidity and tight bid-ask spread.

Risks:

• Relatively short track record.
• Exposure to market volatility.
• Sector-specific risks associated with mid-cap companies.
• ESG investing may limit investment opportunities.

Who Should Consider Investing:

FTH is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to mid-cap stocks with strong momentum potential.
• Alignment with biblical values in their investments.

Evaluation of ETF Inspire Faithward Mid Cap Momentum ESG ETF’s fundamentals using an AI-based rating system on a scale of 1 to 10:

Fundamental Rating Based on AI: 7.5

Analysis: FTH's strong growth potential, active management, and alignment with faith-based values contribute to its favorable rating. However, the short track record and potential market volatility warrant some caution.

Resources and Disclaimers:

Sources:

• Inspire Investing Website
• ETF Database
• Morningstar

Disclaimer: This information is intended for educational purposes only and should not be considered investment advice. Investing involves risk, and you should consult with a qualified financial professional before making any investment decisions.