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

Overview

The FIS Knights of Columbus Global Belief ETF seeks to provide investment results that correspond generally to the total return (before fees and expenses) of the Knights of Columbus Global Belief Index. It focuses on investing in companies that align with Catholic principles, excluding those involved in activities deemed inconsistent with those beliefs.

Reputation and Reliability

The issuer, SHP ETF Trust, is a relatively newer player in the ETF market. While they may not have the long track record of some larger issuers, they are partnered with established organizations, which adds to their credibility.

Management Expertise

The management team leverages the investment expertise of FIS and the ethical screening provided by the Knights of Columbus, combining financial acumen with values-based investing.

Goal

To provide investment results that correspond generally to the total return of the Knights of Columbus Global Belief Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Knights of Columbus Global Belief Index, which employs a rules-based methodology to select companies that align with Catholic values.

Composition The ETF primarily holds stocks of global companies that meet the ethical and financial criteria of the index.

Market Share: The FIS Knights of Columbus Global Belief ETF holds a small market share within the broader ESG ETF landscape, with its primary focus on Catholic values-based investing limiting its widespread appeal relative to broader ESG funds.

Total Net Assets (AUM): 20414743

Key Competitors

• IShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Competitive Landscape

The ESG ETF market is highly competitive, with many funds targeting ethical or sustainable investments. KOCG differentiates itself by adhering to Catholic values, which may appeal to a specific investor segment but also limits its broader market penetration. Competitors like ESGU and ESGV have much broader appeal due to the scale, broader ESG scope, and name recognition of their issuers.

Historical Performance: Historical performance data is not readily available for extended periods due to the relative newness of the ETF. The available data should be evaluated in comparison to the broader market.

Benchmark Comparison: Compare the ETFu2019s performance to its benchmark index, the Knights of Columbus Global Belief Index, to gauge its effectiveness in replicating its target return.

Expense Ratio: 0.39

Average Trading Volume

The ETF's average trading volume is relatively low, which can sometimes lead to wider bid-ask spreads.

Bid-Ask Spread

The bid-ask spread can vary, and investors should be mindful of potential trading costs due to the low average trading volume.

Market Environment Factors

The ETF's performance is influenced by factors such as global equity market performance, investor sentiment towards ESG investing, and the specific performance of companies that align with Catholic values.

Growth Trajectory

The growth trajectory depends on the increasing interest in values-based investing and the ability of the ETF to attract investors seeking investments aligned with their religious beliefs.

Competitive Edge

The FIS Knights of Columbus Global Belief ETF's competitive advantage lies in its unique ethical screening process based on Catholic principles, which differentiates it from broader ESG funds. This specialized approach attracts investors who prioritize alignment with Catholic values. The ETF's affiliation with the Knights of Columbus provides credibility and a network for distribution. However, this niche focus can also limit its potential market share, as it caters to a specific segment of values-based investors.

Volatility

The ETF's volatility is likely correlated with the broader equity market, but may be influenced by the specific sectors and companies included in its portfolio.

Market Risk

Market risk is associated with fluctuations in the stock market, while specific risks relate to the financial health and operational performance of the companies held in the ETF.

Ideal Investor Profile

The ideal investor is someone who seeks investments that align with Catholic values, is comfortable with global equity exposure, and is willing to accept potentially lower liquidity.

Market Risk

The ETF may be suitable for long-term investors seeking values-based investments and are comfortable with the risks associated with equity markets.

The FIS Knights of Columbus Global Belief ETF offers investors exposure to global equities screened according to Catholic values, providing a unique approach to values-based investing. The ETF aims to track the Knights of Columbus Global Belief Index, focusing on companies that meet its ethical and financial criteria. Its relatively low trading volume and specific investment mandate may limit its appeal compared to broader ESG ETFs. Investors should consider their individual values, risk tolerance, and liquidity needs before investing.

Data Sources:

• ETF.com
• Morningstar
• Fund Fact Sheet
• Company Website

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions. Market share data may be estimated and based on available information.