Inspire Small/Mid Cap Impact ETF (ISMD)

ETF Inspire Small/Mid Cap Impact ETF Overview:

Profile:

• Focus: The ETF targets the small and mid-cap segments of the US stock market while prioritizing companies that demonstrate a positive social or environmental impact.
• Asset Allocation: Invests in equities across various industries, emphasizing companies with strong Environmental, Social, and Governance (ESG) practices.
• Investment Strategy: Utilizes a combination of quantitative and qualitative analysis to select companies with solid financial performance and impactful business practices.

Objective:

• The primary goal is to achieve long-term capital appreciation while aligning investments with positive societal and environmental outcomes.

Issuer:

• Fund Sponsor: Inspire Investing
• Reputation & Reliability: Inspire Investing is a relatively young asset management firm founded in 2018. It has a growing reputation for its commitment to sustainable and impact investing strategies.
• Management: The ETF is managed by a team with extensive experience in ESG investing and financial analysis.

Market Share & Total Net Assets:

• This information is not currently publicly available due to the ETF's recent launch date (October 26th, 2023).

Moat:

• Unique Strategy: The ETF combines quantitative and qualitative analysis, focusing on ESG factors alongside traditional financial metrics, creating a differentiated approach.
• Impact Focus: The commitment to positive impact sets the ETF apart from competitors, attracting investors seeking social and environmental consciousness alongside financial returns.

Financial Performance:

• As the ETF is new, historical performance data is limited.

Benchmark Comparison:

• Due to the unique nature of the ETF's strategy, a direct comparison with traditional broad-market benchmarks may not be fully representative.

Growth Trajectory:

• The growing demand for sustainable investing suggests a positive outlook for impact-focused ETFs like Inspire Small/Mid Cap Impact. However, the ETF's future performance depends on various market and company-specific factors.

Liquidity:

• Average Trading Volume and Bid-Ask Spread data are currently unavailable due to the ETF's recent launch.

Market Dynamics:

• The ETF operates within the rapidly growing impact investing market, influenced by factors like:
  • Increased investor demand for ESG-aligned investments.
  • Regulatory changes promoting sustainable practices.
  • Growing awareness of social and environmental challenges.

Competitors:

• iShares MSCI USA Small-Cap ESG Optimized ETF (ESML)
• SPDR S&P 500 ESG Index ETF (EFIV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USEL)

Expense Ratio:

• The current expense ratio is 0.60%.

Investment Approach & Strategy:

• Strategy: Passively tracks the Inspire Impact US Small/Mid Cap Select Index, which selects companies based on combined financial and ESG criteria.
• Composition: Invests primarily in US small and mid-cap stocks across various industries.

Key Points:

• Combines financial and impact considerations for a unique investment approach.
• Targets small and mid-cap companies with strong growth potential.
• Aims for long-term capital appreciation alongside positive societal and environmental impact.

Risks:

• Volatility: The ETF's focus on small and mid-cap companies can lead to higher volatility compared to broader market investments.
• Market Risk: Performance is subject to fluctuations in the overall stock market and specific industry sectors.
• Impact Investing Risk: The impact investing landscape is evolving, and the efficacy of ESG factors in achieving desired outcomes may vary.

Who Should Consider Investing:

• Investors seeking long-term capital growth while aligning investments with positive social and environmental impact.
• Investors with moderate to high risk tolerance who believe in the potential of small and mid-cap companies.
• Investors seeking diversification within their portfolio and exposure to the growing impact investing market.

Fundamental Rating Based on AI (1-10):

• 8.5: The ETF exhibits strong fundamentals with a differentiated strategy, experienced management, and adherence to a growing market trend. However, limited performance history and data availability necessitate a slightly conservative rating.

Resources and Disclaimers:

• Sources: Inspire Investing website, ETF.com, Morningstar, SEC filings.
• Disclaimer: This information is for informational purposes only and should not be considered investment advice. Please consult a qualified financial professional before making any investment decisions.