Northern Lights Fund Trust IV - Inspire Corporate Bond Impact ETF (IBD)

Overview

The Inspire Corporate Bond Impact ETF (IBD) seeks to provide investment results that correspond to the Inspire Corporate Bond Impact ESG Index. It invests in investment-grade corporate bonds of U.S. companies that align with biblical values and demonstrate a positive social impact.

Reputation and Reliability

Northern Lights Fund Trust IV offers a range of ETFs. Its reputation for specialized funds is growing. Reliability needs further evaluation based on fund performance over longer periods.

Management Expertise

Management expertise is focused on thematic and impact investing, aiming to provide both financial returns and adherence to specific values-based criteria.

Goal

To provide investment results that generally correspond to the price and yield, before fees and expenses, of the Inspire Corporate Bond Impact ESG Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the Inspire Corporate Bond Impact ESG Index, a rules-based index based on screening companies for alignment with biblical values and ESG criteria.

Composition The ETF primarily holds investment-grade corporate bonds issued by U.S. companies. The specific holdings are determined by the index methodology.

Market Share: IBD has a relatively small market share within the broader corporate bond ETF market.

Total Net Assets (AUM): 11850000

Key Competitors

• LQD
• AGG
• VCSH

Competitive Landscape

The corporate bond ETF market is highly competitive and dominated by large, established players like iShares (LQD) and Vanguard (AGG). IBD differentiates itself through its values-based and ESG-focused approach, which may appeal to a specific investor base. However, it faces the challenge of smaller AUM and potentially lower liquidity compared to its larger competitors. Its values-based focus is its primary differentiator.

Historical Performance: Historical performance data can be obtained from financial websites. This ETF is relatively new, limiting the availability of long-term historical data.

Benchmark Comparison: Comparison to the Inspire Corporate Bond Impact ESG Index is crucial. Performance versus broad bond indices like the Bloomberg Barclays U.S. Aggregate Bond Index is also relevant.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume is relatively low, potentially impacting the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread may be wider compared to more liquid ETFs, which could increase the cost of trading.

Market Environment Factors

Economic growth, interest rate movements, and credit spreads significantly influence the performance of corporate bond ETFs. Market sentiment towards ESG and values-based investing also plays a role.

Growth Trajectory

Growth depends on increased investor interest in values-based investing and the ETF's ability to attract assets. Continued performance aligning with its index is critical.

Competitive Edge

IBD's competitive edge lies in its values-based screening process and focus on socially responsible investing, differentiating it from traditional corporate bond ETFs. This appeals to investors seeking alignment between their investments and their ethical beliefs. It aims to provide a portfolio of corporate bonds that meet specific ESG criteria, specifically based on biblical values. However, this niche focus may limit its potential investor base compared to broad-market bond ETFs.

Volatility

Volatility is tied to the underlying corporate bond market and credit spreads. Investment-grade corporate bonds generally exhibit lower volatility than equities, but are still susceptible to market fluctuations.

Market Risk

Market risk includes interest rate risk (rising rates can decrease bond values), credit risk (risk of default by bond issuers), and liquidity risk (difficulty in selling bonds at a fair price).

Ideal Investor Profile

The ideal investor is values-based, seeking to align their investment portfolio with their ethical or religious beliefs. They should be comfortable with the risks associated with corporate bonds and the potential for lower liquidity.

Market Risk

The ETF is suitable for long-term investors seeking income and capital preservation with a values-based investing approach. It may also be suitable for passive index followers specifically interested in this kind of screening.

The Inspire Corporate Bond Impact ETF (IBD) provides exposure to investment-grade corporate bonds screened for alignment with biblical values. It differentiates itself through its ESG focus and targets investors seeking socially responsible investments. The ETF's performance is tied to the underlying corporate bond market and its success depends on attracting assets to grow and maintain liquidity. While offering a unique values-based approach, it faces competition from larger, more liquid corporate bond ETFs.

• VCSH
• SCHH
• HYMB
• USIG

Data Sources:

• Inspire ETFs Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Past performance is not indicative of future results. Consult a financial advisor before making any investment decisions.