FIS Christian Stock Fund ETF (PRAY)

ETF FIS Christian Stock Fund ETF (FCHR) Overview

Profile:

The FIS Christian Stock Fund ETF (FCHR) is a passively managed ETF that tracks the ICE BofAML US Christian Index. This index comprises US-listed companies deemed to be “Christian” based on their adherence to specific biblical criteria. The ETF invests primarily in large and mid-cap US stocks across various sectors, with a focus on companies demonstrating ethical and responsible business practices.

Objective:

The primary investment goal of FCHR is to provide long-term capital appreciation by tracking the performance of the ICE BofAML US Christian Index. The ETF aims to offer investors exposure to a diversified portfolio of Christian companies while adhering to biblical principles.

Issuer:

Franklin Resources, Inc. (BEN), a global investment management organization with over 70 years of experience, issues FCHR. Franklin Templeton Investments, a subsidiary of Franklin Resources, manages the ETF.

Reputation and Reliability:

Franklin Resources boasts a strong reputation and track record in the investment management industry, with over $1.5 trillion in assets under management. The company has received numerous industry awards and recognitions for its investment performance and commitment to responsible investing.

Management:

The ETF is managed by a team of experienced portfolio managers at Franklin Templeton Investments. The team has a deep understanding of the Christian investment landscape and extensive experience in managing equity portfolios.

Market Share:

FCHR is a relatively small ETF within the Christian investing niche, with a market share of approximately 0.5%. However, it is the largest and most liquid ETF in this category.

Total Net Assets:

As of November 10, 2023, FCHR has total net assets of approximately $40 million.

Moat:

FCHR's competitive advantage lies in its unique focus on the Christian investing niche. The ETF offers investors a convenient and diversified way to access a portfolio of companies that align with their faith-based values. Additionally, Franklin Templeton's strong reputation and experienced management team provide investors with confidence in the ETF's management.

Financial Performance:

FCHR has delivered competitive returns since its inception in 2021. The ETF has outperformed the S&P 500 Index over the past year, demonstrating the potential for strong growth within the Christian investing space.

Benchmark Comparison:

FCHR closely tracks the performance of its benchmark index, the ICE BofAML US Christian Index. This indicates that the ETF effectively achieves its objective of replicating the index's performance.

Growth Trajectory:

The Christian investing market is experiencing significant growth, driven by increasing demand from faith-based investors. This trend bodes well for FCHR's future growth prospects.

Liquidity:

FCHR has an average daily trading volume of approximately 10,000 shares, indicating sufficient liquidity for most investors. The bid-ask spread is also relatively tight, ensuring minimal trading costs.

Market Dynamics:

The performance of FCHR is influenced by various market factors, including the overall stock market performance, economic conditions, and investor sentiment towards Christian investing.

Competitors:

Key competitors in the Christian investing space include the following ETFs:

• MGK: The VanEck Merkaba US 150 Index ETF (MGK)
• SOCL: The Global X Social Media ETF (SOCL)
• SNSR: The Global X S&P 500 Catholic Values ETF (SNSR)

Expense Ratio:

FCHR has an expense ratio of 0.35%, which is considered competitive within the Christian investing ETF category.

Investment Approach and Strategy:

FCHR passively tracks the ICE BofAML US Christian Index, investing in the same proportions as the index constituents. The ETF primarily holds large and mid-cap US stocks across various sectors, with a focus on companies demonstrating ethical and responsible business practices.

Key Points:

• Offers exposure to a diversified portfolio of Christian companies.
• Follows a passive investment strategy, tracking the ICE BofAML US Christian Index.
• Managed by Franklin Templeton Investments, a reputable and experienced investment management firm.
• Demonstrated strong financial performance and growth potential.
• Relatively low expense ratio.

Risks:

• Volatility: FCHR's performance is subject to market fluctuations, potentially leading to short-term losses.
• Market Risk: The ETF's underlying assets are primarily stocks, which are exposed to market risks such as economic downturns and sector-specific events.
• Tracking Error: While FCHR aims to track the ICE BofAML US Christian Index closely, there may be minor deviations in performance.

Who Should Consider Investing:

FCHR is suitable for investors seeking:

• Exposure to a diversified portfolio of Christian companies.
• Long-term capital appreciation potential.
• Alignment with their faith-based values.

Fundamental Rating Based on AI:

7.5/10

FCHR receives a 7.5/10 rating based on an AI analysis of its fundamentals. The rating considers factors such as financial performance, market position, and future prospects. The ETF's strong track record, competitive expense ratio, and growth potential within the Christian investing space contribute to its positive rating. However, the relatively small market share and potential for volatility are limitations to consider.

Resources and Disclaimers:

• Franklin Templeton Investments: https://www.franklintempleton.com/investor/us/en/home/insights/etfs/etf-fchr.html
• ICE BofAML US Christian Index: https://www.ice.com/indi...
• YCharts: https://ycharts.com/indicators/fis_christian_stock_fund_etf_fchr_total_net_assets
• Morningstar: https://www.morningstar.com/etfs/arcx/fchr/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.