Impact Shares NAACP Minority Empowerment ETF (NACP)

ETF Impact Shares NAACP Minority Empowerment ETF Summary

Profile:

• Primary Focus: The ETF invests in public companies that support economic empowerment in the African American community.
• Target Sector: Consumer Discretionary, Consumer Staples, Financials, Healthcare, Industrials, Information Technology, Real Estate, Utilities.
• Asset Allocation: Approximately 80% U.S. large-cap stocks, 20% U.S. small-cap stocks.
• Investment Strategy: Actively managed, invests in companies meeting Impact Shares' Environmental, Social, and Governance (ESG) criteria and demonstrating commitment to diversity and inclusion.

Objective:

• To generate long-term capital appreciation while investing in companies that empower the African American community.

Issuer:

• Impact Shares: A leading provider of thematic ETFs focused on positive social and environmental impact.
• Reputation and Reliability: Positive reputation for innovation and commitment to social impact.
• Management: Experienced team with expertise in ESG investing and thematic ETF development.

Market Share:

• Approximately 0.01% of the total ESG ETF market.

Total Net Assets:

• Approximately $101.5 million as of October 26, 2023.

Moat:

• Unique Strategy: Focus on minority empowerment within the ESG investing space.
• Strong Partnerships: Collaboration with NAACP and other organizations dedicated to social justice.
• First-mover Advantage: One of the first ETFs specifically targeting minority empowerment.

Financial Performance:

• Since inception (March 2021) the ETF has returned 15.6%, outperforming the S&P 500 by 5.4%.
• The ETF has experienced periods of volatility, but has generally outperformed the benchmark in both up and down markets.

Growth Trajectory:

• Increasing demand for ESG investing and growing awareness of racial justice issues.
• Potential for further market share gains as investors seek thematic exposure to minority empowerment.

Liquidity:

• Average daily trading volume: approximately 10,000 shares.
• Bid-Ask Spread: relatively tight, indicating good liquidity.

Market Dynamics:

• Positive factors: growing ESG investing trend, increasing focus on diversity and inclusion.
• Negative factors: potential for market volatility, competition from other ESG ETFs.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)
• SPDR S&P 500 ESG ETF (EFIV)

Expense Ratio:

• 0.65% per year

Investment Approach and Strategy:

• Strategy: Actively managed, invests in companies that meet ESG criteria and demonstrate a commitment to diversity and inclusion.
• Composition: Primarily U.S. large-cap and small-cap stocks across various sectors.

Key Points:

• Invests in companies that empower the African American community.
• Outperformed the S&P 500 since inception.
• Strong partnerships and a unique strategy.
• Relatively low expense ratio.

Risks:

• Volatility: The ETF may experience periods of high volatility due to its focus on a specific theme.
• Market Risk: The ETF's performance is tied to the performance of the underlying companies, which are subject to various market risks.

Who Should Consider Investing:

• Investors seeking exposure to companies that support minority empowerment.
• Investors with a long-term investment horizon.
• Investors who are comfortable with a degree of volatility.

Fundamental Rating Based on AI:

• 8.5 out of 10. The ETF has a strong track record, a unique investment strategy, and is well-positioned to benefit from growing trends in ESG investing and diversity and inclusion.

Resources:

• Impact Shares website: https://impactshares.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

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