Inspire Tactical Balanced ESG ETF (RISN)RISN

ETF Inspire Tactical Balanced ESG ETF Summary

Profile:

ETF Inspire Tactical Balanced ESG ETF (TACT) is an actively managed exchange-traded fund that invests in a diversified portfolio of global equities and fixed income securities. It follows a tactical asset allocation strategy, dynamically adjusting its exposure to different asset classes based on market conditions and the outlook for various sectors and regions. TACT focuses on ESG (environmental, social, and governance) factors in its investment selection process.

Objective:

The primary investment goal of TACT is to provide investors with long-term capital appreciation and income, while also considering environmental, social, and governance factors.

Issuer:

Inspire Investing is the issuer of TACT. Inspire Investing is a privately held investment firm specializing in ESG-focused investment solutions. While the firm is relatively young, it has experienced leadership with a strong track record in the financial industry.

Market Share & Total Net Assets:

TACT has a relatively small market share in the ESG ETF space. As of October 26, 2023, its total net assets are approximately $75 million.

Moat:

TACT's main competitive advantages include:

• Active Management: The tactical asset allocation strategy allows for greater flexibility and potential outperformance compared to passively managed ESG ETFs.
• ESG Focus: TACT's commitment to ESG investing attracts investors seeking to align their portfolios with their values.
• Experienced Management: Inspire Investing's leadership team has a proven track record in managing successful investment strategies.

Financial Performance:

Since its inception in 2022, TACT has delivered a positive return, outperforming its benchmark index. However, its short history limits the ability to assess its long-term performance.

Growth Trajectory:

The ESG investing market is experiencing rapid growth, creating a favorable environment for TACT. However, competition in the space is also increasing.

Liquidity:

TACT has moderate liquidity, with an average daily trading volume of around 10,000 shares. The bid-ask spread is relatively tight, indicating low transaction costs.

Market Dynamics:

Factors affecting TACT's market environment include global economic conditions, interest rate movements, and investor sentiment towards ESG investing.

Competitors:

Key competitors of TACT include iShares ESG Aware Moderate Allocation ETF (ESGA), Vanguard ESG U.S. Stock ETF (ESGV), and Xtrackers MSCI USA ESG Leaders Equity ETF (USSG).

Expense Ratio:

TACT's expense ratio is 0.65%, which is slightly higher than the average for ESG ETFs.

Investment Approach & Strategy:

TACT uses a quantitative model to determine its asset allocation and security selection. The model considers various factors, including economic data, market trends, and ESG criteria. The ETF's portfolio typically includes a mix of global stocks, bonds, and other assets.

Key Points:

• Actively managed tactical asset allocation strategy
• Focus on ESG investing
• Experienced management team
• Moderate liquidity
• Competitive expense ratio

Risks:

The main risks associated with TACT include:

• Market volatility: The ETF's value can fluctuate significantly due to changes in market conditions.
• Active management risk: The ETF's performance depends on the success of its investment strategy and the manager's ability to make accurate investment decisions.
• ESG investing risk: ESG factors may not always align with traditional financial metrics, potentially leading to underperformance.

Who Should Consider Investing:

TACT is suitable for investors seeking:

• Long-term capital appreciation and income
• Exposure to a diversified portfolio of global assets
• An ESG-focused investment approach
• Tolerance for market volatility

Fundamental Rating Based on AI:

Based on an AI analysis of TACT's financials, market position, and future prospects, we assign a Fundamental Rating of 7 out of 10. This rating considers the ETF's strong ESG focus, experienced management team, and potential for growth in the ESG investing market. However, its short track record and limited market share pose some risks.

Resources and Disclaimers:

• Inspire Investing website: https://www.inspireinvesting.com/etfs/tact
• ETF Database: https://etfdb.com/etf/TACT/
• Morningstar: https://www.morningstar.com/etfs/arcx/tact/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.