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

Overview

The Northern Lights Fund Trust IV - Inspire Corporate Bond Impact ETF (IBDB) is an actively managed ETF that invests in corporate bonds screened for environmental, social, and governance (ESG) factors. It aims to provide investors with exposure to corporate debt while promoting positive social and environmental impact.

Reputation and Reliability

Northern Lights Fund Trust IV acts as the issuer, with Inspire Investing serving as the investment advisor. Inspire Investing is known for its focus on biblically responsible investing (BRI) and ESG principles.

Management Expertise

The management team, led by Inspire Investing, possesses expertise in ESG screening and fixed-income analysis, aiming to select corporate bonds that meet both financial and impact criteria.

Goal

To generate income and capital appreciation from investments in corporate bonds while adhering to specific ESG criteria, promoting positive impact.

Investment Approach and Strategy

Strategy: The ETF is actively managed and does not track a specific index. It employs a proprietary ESG screening methodology to select corporate bonds.

Composition The ETF primarily holds investment-grade corporate bonds. The specific holdings can vary based on the fund's ESG screening and market opportunities.

Market Share: Data on specific market share for this niche ETF is not readily available, as it operates in a specialized segment of the ETF market.

Total Net Assets (AUM):

Key Competitors

• iShares ESG Aware Corp Bond ETF (SUSC)
• Vanguard ESG U.S. Corporate Bond ETF (VCEB)
• SPDR Bloomberg High Yield ESG ETF (VWOB)

Competitive Landscape

The ESG corporate bond ETF market is growing but still relatively concentrated. IBDB faces competition from larger, more established ETF providers with broader ESG mandates and greater brand recognition. Its competitive advantage lies in its specific biblically responsible investing (BRI) focus, which may appeal to a niche segment of socially conscious investors.

Historical Performance: Historical performance data for IBDB is limited due to its relatively recent inception. Investors should consult the fund's prospectus for the most up-to-date performance information.

Benchmark Comparison: As an actively managed fund with a proprietary ESG screening process, IBDB may not have a direct, perfectly comparable benchmark. Performance is typically assessed against broader corporate bond indices with an ESG overlay.

Expense Ratio:

Average Trading Volume

The average trading volume for IBDB is typically lower compared to larger, more established ETFs, which can impact its liquidity.

Bid-Ask Spread

The bid-ask spread for IBDB may be wider than that of highly liquid ETFs, potentially increasing trading costs for investors.

Market Environment Factors

The performance of IBDB is influenced by interest rate movements, credit quality of corporate issuers, and investor demand for ESG-focused fixed-income products. A growing interest in sustainable investing generally bodes well for ESG bond ETFs.

Growth Trajectory

As a newer entrant, IBDB's growth trajectory depends on its ability to attract assets by demonstrating strong financial performance and a clear impact thesis within its BRI framework.

Competitive Edge

IBDB's primary competitive edge is its unique biblically responsible investing (BRI) focus, differentiating it from broader ESG ETFs. This niche approach can attract a dedicated investor base seeking investments aligned with specific ethical values. Its active management strategy allows for dynamic adjustments to holdings based on its impact criteria and market conditions.

Volatility

As a corporate bond ETF, IBDB is subject to interest rate risk, credit risk, and market risk. Its volatility will generally be lower than equity ETFs but higher than government bond ETFs.

Market Risk

The underlying corporate bonds are subject to the risk of default by the issuing companies, which can lead to loss of principal. Changes in interest rates can also negatively impact bond prices.

Ideal Investor Profile

The ideal investor for IBDB is one who seeks income and capital appreciation from corporate bonds and also desires to invest in a manner consistent with biblically responsible investing principles. This investor is comfortable with active management and ESG screening.

Market Risk

IBDB is generally more suited for long-term investors who are aligned with its specific ethical and impact mandate rather than active traders due to its potentially lower liquidity.

The Northern Lights Fund Trust IV - Inspire Corporate Bond Impact ETF (IBDB) offers a unique investment avenue for individuals seeking corporate bond exposure with a biblically responsible investing (BRI) focus. While actively managed and ESG-screened, its niche appeal and newer status present both opportunities and challenges. Investors should carefully consider its specific impact criteria and potential liquidity constraints.

Data Sources:

• Fund Prospectus (as available)
• ETF Provider Websites (Inspire Investing, Northern Lights Fund Trust IV)
• Financial Data Aggregators (e.g., ETF.com, Morningstar)

Disclaimers:

This information is for illustrative purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions. Data may be incomplete or subject to change.