Humankind Benefit Corporation - Humankind US Stock ETF (HKND)

Humankind Benefit Corporation - Humankind US Stock ETF (HMAN) Overview

Profile:

HMAN is an actively managed ESG-focused ETF that invests in US companies with strong environmental, social, and governance (ESG) practices. The ETF targets large and mid-cap US stocks across various sectors, excluding those in controversial industries like fossil fuels, tobacco, and weapons. It utilizes a proprietary selection process that identifies companies demonstrating positive social and environmental impact alongside financial performance.

Objective:

The primary objective of HMAN is to provide long-term capital appreciation while promoting positive social and environmental impact.

Issuer:

HMAN is issued by Humankind Benefit Corporation, a Nevada-based asset management firm specializing in ESG-focused investment products. Humankind is a relatively new firm established in 2022, driven by a mission to align social impact with financial returns.

Market Share and Total Net Assets:

HMAN is a relatively new ETF with a limited track record. As of October 26, 2023, its market share is relatively small compared to established ESG-focused ETFs. Its total net assets are approximately $30 million.

Moat:

HMAN's competitive advantage lies in its unique and stringent ESG selection process. The ETF's focus on companies demonstrating positive social and environmental impact while maintaining financial performance sets it apart from other ESG-focused ETFs that may prioritize financial returns over impact.

Financial Performance:

Since its inception in July 2023, HMAN has outperformed the S&P 500 index. However, due to its short track record, it's crucial to observe its performance over a longer period to establish a definitive trend.

Liquidity:

HMAN has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity. The bid-ask spread is currently around 0.10%, reflecting relatively low trading costs.

Market Dynamics:

The growth of the ESG investing market and increasing investor demand for responsible investment options are positive factors for HMAN. However, competition from other ESG-focused ETFs and potential market volatility could pose challenges.

Competitors:

Key competitors in the ESG-focused ETF space include iShares ESG Aware MSCI USA ETF (ESGU), SPDR S&P 500 ESG ETF (EFIV), and Xtrackers MSCI USA ESG Leaders Equity ETF (USSG).

Expense Ratio:

The expense ratio for HMAN is 0.75%, which is slightly higher than the average for ESG-focused ETFs.

Investment approach and strategy:

HMAN employs an active management strategy, selecting individual stocks based on their ESG performance and financial metrics. The ETF does not track a specific index. It predominantly invests in large and mid-cap US stocks across various sectors, excluding those deemed controversial.

Key Points:

• Actively managed ESG-focused ETF targeting US companies.
• Focuses on social and environmental impact alongside financial performance.
• Relatively new with limited track record but outperforming the S&P 500 since inception.
• Moderate liquidity and competitive expense ratio.
• Faces competition from established ESG-focused ETFs.

Risks:

• Volatility: As a relatively new ETF, HMAN's future performance is uncertain and could be more volatile than established funds.
• Market risk: The ETF's performance is tied to the underlying stock market, susceptible to economic and market fluctuations.
• Impact measurement: Evaluating the social and environmental impact of investments can be challenging and subjective.

Who Should Consider Investing:

HMAN is suitable for investors seeking long-term capital appreciation while aligning their investments with positive social and environmental values. Investors should be comfortable with the potential volatility associated with a newer ETF and understand the inherent risks of the stock market.

Fundamental Rating Based on AI:

Based on an AI-powered analysis, HMAN receives a preliminary rating of 7 out of 10. The rating considersfactors like the ETF's unique ESG focus, performance track record, and moderate liquidity. However, the limited data due to its recent launch necessitates further observation over a longer period to refine the rating.

Resources and Disclaimers:

This analysis utilizes data from Humankind Benefit Corporation's website, ETF.com, and Morningstar. It is essential to note that this information should not be considered financial advice. Investors should conduct further research and due diligence before making any investment decisions.