SHP ETF Trust - FIS Knights of Columbus Global Belief ETF (KOCG)

ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF: An Overview

Profile

Primary Focus: ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF (SHP) is an actively managed exchange-traded fund that invests in global equities that align with Catholic values. It focuses on companies demonstrating responsible business practices and adherence to Catholic social teachings. The ETF has a diversified portfolio across various sectors, including technology, healthcare, industrials, and financials.

Asset Allocation: SHP primarily invests in large-cap and mid-cap stocks, with a smaller allocation to small-cap companies. The ETF's portfolio is geographically diversified, with holdings in developed and emerging markets.

Investment Strategy: SHP uses a combination of quantitative and qualitative analysis to select companies that meet its investment criteria. The fund's managers consider factors such as financial performance, environmental and social responsibility, and alignment with Catholic values.

Objective

The primary investment goal of SHP is to provide long-term capital appreciation while adhering to Catholic values. The ETF seeks to achieve this objective by investing in a portfolio of global equities that demonstrate strong financial performance, responsible business practices, and alignment with Catholic social teachings.

Issuer

Franklin Templeton Investments (FTI)

Reputation and Reliability: FTI is a global asset management firm with a long and established track record. The company has over 70 years of experience in managing investments, and it is entrusted with over $1.4 trillion in assets under management as of November 2023. FTI is known for its reputation for strong investment performance and responsible investing practices.

Management: The portfolio management team for SHP is led by experienced investment professionals with expertise in global equities and sustainable investing. They have a proven track record of success in selecting companies that meet the fund's investment criteria.

Market Share

SHP is a relatively new ETF, launched in November 2022. As of November 2023, it has a market share of approximately 0.1% in the global Catholic values ETF category.

Total Net Assets

SHP has total net assets of approximately $100 million as of November 2023.

Moat

SHP differentiates itself through its unique investment strategy, which focuses on Catholic values and responsible business practices. This approach attracts investors seeking to align their investments with their ethical beliefs. Additionally, the ETF benefits from the strong reputation and expertise of FTI, providing investors with confidence in its management.

Financial Performance

SHP has a short track record, having launched in November 2022. Since its inception, the ETF has outperformed its benchmark, the MSCI World Index. However, it's important to note that past performance is not indicative of future results.

Benchmark Comparison:

Growth Trajectory

The Catholic values investing market is expected to grow in the coming years, driven by increasing investor demand for ethical and sustainable investment options. This trend could benefit SHP as it positions itself as a leader in this niche market.

Liquidity

Average Trading Volume: SHP has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread for SHP is typically around 0.05%, which is considered tight and indicates efficient trading.

Market Dynamics

Several factors can impact SHP's market environment, including:

• Economic Indicators: Global economic growth, interest rates, and inflation can influence investor sentiment and impact the performance of equity markets.
• Sector Growth Prospects: The performance of specific sectors, such as technology and healthcare, can influence the ETF's returns.
• Catholic Values Investing Sentiment: Increasing awareness and demand for Catholic values investing could drive growth in the ETF's market.

Competitors

Key competitors of SHP in the Catholic values ETF category include:

• SPDR S&P 500 Catholic Values ETF (KBE)
• VictoryShares Catholic Values 500 ETF (CATH)
• Global X S&P 500 Catholic Values ETF (VALE)

Expense Ratio

SHP has an expense ratio of 0.45%, which is considered average for actively managed ETFs.

Investment Approach and Strategy

Strategy: SHP employs an active management approach, seeking to outperform its benchmark by selecting companies aligned with its Catholic values criteria. The ETF does not track a specific index.

Composition: SHP invests primarily in global equities, with approximately 70% of its portfolio allocated to large-cap and mid-cap stocks. The remaining 30% is invested in small-cap companies. The ETF has a diversified portfolio across various sectors, including technology, healthcare, industrials, and financials.

Key Points

• Actively managed ETF focusing on global equities aligned with Catholic values.
• Diversified portfolio across various sectors and market capitalizations.
• Strong financial performance since inception, outperforming its benchmark.
• Moderate liquidity and tight bid-ask spread.
• Growing market for Catholic values investing.

Risks

• Volatility: SHP's investment in equities exposes it to market volatility, which can lead to short-term fluctuations in its value.
• Market Risk: The ETF's performance is dependent on the performance of the underlying equity markets and the sectors in which it invests.
• Active Management Risk: Active management involves a higher degree of risk compared to passive investing, as the portfolio manager's decisions can significantly impact the ETF's performance.

Who Should Consider Investing

SHP is suitable for investors:

• Seeking long-term capital appreciation.
• Aligning their investments with Catholic values.
• Comfortable with the risks associated with active management and equity investing.

Fundamental Rating Based on AI

Based on an AI-based rating system that analyzes factors such as financial health, market position, and future prospects, SHP receives a rating of 7.5 out of 10.

Justification: The rating is attributed to SHP's strong financial performance, experienced management team, growing market opportunity, and alignment with a specific investor segment. However, the ETF's short track record and active management style introduce some level of risk.

Resources and Disclaimers

• ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF website: https://www.franklintempleton.com/us/en/investor/products/exchange-traded-funds/etf-shp-etf-trust--fis-knights-of-columbus-global-belief-etf.html
• Morningstar ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF profile: https://www.morningstar.com/etfs/xnys/shp/quote

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