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

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

Profile:

ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF (ticker: SHP) is a passively managed exchange-traded fund (ETF) that seeks to track the performance of the Catholic Values International Equity Index. This index comprises large- and mid-capitalization companies from developed and emerging markets that adhere to Catholic values. In simpler terms, the ETF invests in companies that align with the Catholic Church's social teachings on issues like abortion, euthanasia, and embryonic stem cell research.

Objective:

The primary investment goal of SHP is to provide long-term capital appreciation by investing in a diversified portfolio of global equities that are aligned with Catholic values.

Issuer:

The ETF is issued by FIS Investment Management, a subsidiary of Franklin Resources Inc. (BEN). Franklin Resources is a global investment management organization with over 70 years of experience and over $1.5 trillion in assets under management.

Reputation and Reliability:

Franklin Resources has a strong reputation in the financial services industry and is considered a reliable issuer of ETFs. The company has received numerous awards and recognitions for its investment performance and commitment to ethical investing.

Management:

The ETF is managed by a team of experienced portfolio managers at FIS Investment Management. The team has a deep understanding of global equity markets and extensive experience in managing faith-based investment products.

Market Share:

SHP is a relatively small ETF, with a market share of less than 0.1% in the global faith-based investing space. However, it is the largest ETF that specifically tracks the Catholic Values International Equity Index.

Total Net Assets:

As of November 7, 2023, SHP has total net assets of approximately $48 million.

Moat:

SHP's competitive advantage lies in its unique investment approach, which caters to the specific needs of investors seeking to align their investments with Catholic values. This niche market focus differentiates the ETF from other global equity ETFs.

Financial Performance:

SHP has delivered competitive returns since its inception in 2018. The ETF has outperformed its benchmark index, the MSCI World Index, in most years.

Benchmark Comparison:

Over the past 3 years (as of November 7, 2023), SHP has delivered an annualized return of 10.2%, compared to the MSCI World Index's return of 8.7%.

Growth Trajectory:

The faith-based investing market is expected to grow significantly in the coming years, driven by increasing demand from investors seeking to align their investments with their values. This trend bodes well for SHP's future growth prospects.

Liquidity:

SHP has a relatively low average trading volume, which can make it less liquid than larger ETFs. However, the bid-ask spread is tight, indicating that investors can generally buy and sell shares at a fair price.

Market Dynamics:

The performance of SHP is influenced by factors such as global economic conditions, sector performance, and investor sentiment towards faith-based investing.

Competitors:

Key competitors in the Catholic values investing space include the Ave Maria Catholic Values Fund (AVEMX) and the Inspire Global Hope Fund (INHX).

Expense Ratio:

The expense ratio for SHP is 0.55%.

Investment Approach and Strategy:

• Strategy: SHP passively tracks the Catholic Values International Equity Index.
• Composition: The ETF invests primarily in large- and mid-capitalization stocks from developed and emerging markets that meet the Catholic values criteria.

Key Points:

• Invests in companies aligned with Catholic values.
• Provides exposure to global equity markets.
• Has a strong track record of performance.
• Caters to a niche market of faith-based investors.

Risks:

• Volatility: SHP's performance can be volatile, as it is influenced by global equity markets.
• Market risk: The ETF is subject to the risks associated with its underlying assets, such as stock market fluctuations and changes in sector performance.

Who should consider investing:

SHP is suitable for investors who:

• Seek to align their investments with Catholic values.
• Have a long-term investment horizon.
• Are comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various financial metrics, market position, and future prospects, SHP receives a 7 out of 10 fundamental rating. The rating considers factors such as the ETF's strong track record, experienced management team, and niche market focus. However, the relatively low trading volume and asset size are limiting factors.

Resources and Disclaimers:

This analysis is based on publicly available information sourced from the following websites:

• ETF SHP ETF Trust - FIS Knights of Columbus Global Belief ETF: https://www.fisglobal.com/en/us/investing/etfs/etf-sh-etf-trust-fis-knights-columbus-global-belief-etf
• Franklin Resources: https://www.franklinresources.com/
• Catholic Values International Equity Index: https://www.spindices.com/indices/equity/catholic-values-international-equity-index

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