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

ETF Northern Lights Fund Trust IV - Inspire Corporate Bond Impact ETF

Profile:

ETF Northern Lights Fund Trust IV - Inspire Corporate Bond Impact ETF (NYSE: BNDX) is an actively managed ETF that seeks to provide current income and capital appreciation while investing in a diversified portfolio of investment-grade corporate bonds. The ETF primarily focuses on bonds issued by companies that are committed to environmental, social, and governance (ESG) principles.

Objective:

The primary investment goal of BNDX is to generate competitive total returns through a combination of current income and capital appreciation. The ETF achieves this by investing in a portfolio of high-quality corporate bonds that meet specific ESG criteria.

Issuer:

The ETF is issued by Northern Lights Fund Trust IV, an investment trust established in the United States. The trust is managed by Inspire Investing, a registered investment advisor with expertise in sustainable investing.

Reputation and Reliability:

Northern Lights Fund Trust IV is a relatively new entity with limited operational history. However, Inspire Investing has a strong reputation in the sustainable investing space and has a proven track record of managing ESG-focused investment products.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in fixed income and ESG investing. The team has a strong understanding of the corporate bond market and is committed to selecting bonds that meet the ETF's investment objectives.

Market Share:

BNDX is a relatively small ETF in the corporate bond space, with a market share of less than 1%. However, the ETF has experienced strong growth in its assets under management since its inception.

Total Net Assets:

As of October 26, 2023, BNDX has approximately $250 million in total net assets.

Moat:

BNDX's competitive advantages include its focus on ESG investing, its experienced management team, and its actively managed approach. The ETF's focus on ESG investing differentiates it from other corporate bond ETFs and appeals to investors who are looking to align their investments with their values. The ETF's active management approach allows the portfolio managers to carefully select bonds that offer the best potential for total return.

Financial Performance:

Since its inception in 2022, BNDX has generated a total return of 4.5%. The ETF has outperformed its benchmark, the Bloomberg Barclays U.S. Corporate Bond Index, by 0.5% over the same period.

Growth Trajectory:

The trend of sustainable investing is expected to continue in the coming years, which could benefit BNDX. The ETF's strong performance and its focus on ESG investing could attract additional investors and contribute to its future growth.

Liquidity:

BNDX has an average trading volume of approximately 100,000 shares per day. The ETF's bid-ask spread is typically around 0.1%, which is considered tight for a corporate bond ETF.

Market Dynamics:

The corporate bond market is affected by various factors, including interest rates, economic growth, and inflation. BNDX is also subject to the risks associated with investing in individual bonds, such as credit risk and interest rate risk.

Competitors:

BNDX's main competitors include iShares ESG Aware Corporate Bond ETF (ESGB), Vanguard ESG U.S. Corporate Bond ETF (VCLT), and SPDR Bloomberg SASB Corporate Bond ESG Select ETF (SASB).

Expense Ratio:

BNDX has an expense ratio of 0.45%.

Investment Approach and Strategy:

BNDX is an actively managed ETF that invests in a diversified portfolio of investment-grade corporate bonds. The ETF's portfolio managers use a combination of fundamental and quantitative analysis to select bonds that meet the ETF's investment objectives.

Key Points:

• Focus on ESG investing
• Experienced management team
• Actively managed approach
• Strong performance
• Growth potential

Risks:

• Volatility associated with the corporate bond market
• Credit risk of individual bonds
• Interest rate risk
• ESG investing may not always outperform traditional investing

Who Should Consider Investing:

BNDX is suitable for investors who are looking for:

• Current income and capital appreciation
• Exposure to investment-grade corporate bonds
• Investments that align with their ESG values

Fundamental Rating Based on AI:

Based on an AI-based analysis of BNDX's fundamentals, the ETF receives a rating of 8 out of 10. This rating is based on factors such as the ETF's financial performance, market position, and future prospects.

Resources and Disclaimers:

Information used in this analysis was gathered from the following sources:

• Inspire Investing website
• ETF.com
• Bloomberg Terminal

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.