Inspire Tactical Balanced ESG ETF (RISN)

US ETF Inspire Tactical Balanced ESG ETF Overview

Profile:

The Inspire Tactical Balanced ESG ETF (NYSE: ITHD) is an actively managed exchange-traded fund (ETF) classified as a low-cost, balanced fund. It aims to track the performance of the Inspire Tactical Balanced ESG Index, which invests in a diversified portfolio of U.S. and international stocks and bonds with a focus on environmental, social, and governance (ESG) factors.

Objective:

The primary investment goal of ITHD is to provide investors with long-term capital appreciation and income, while considering ESG criteria. The ETF seeks to achieve this by strategically allocating assets across various asset classes and sectors, dynamically adjusting its exposure based on market conditions.

Issuer:

Inspire Investing is a California-based asset management firm specializing in ESG-focused investment solutions. The firm has a strong reputation for active management and a commitment to responsible investing.

Reputation and Reliability:

Inspire Investing has a relatively short track record, established in 2019. However, the firm is backed by experienced professionals with a proven history in the financial industry.

Management: The ETF is managed by a team of experienced portfolio managers with expertise in ESG investing and tactical asset allocation.

Market Share:

ITHD holds a small market share in the balanced fund category. However, it is gaining traction due to its unique ESG focus and active management approach.

Total Net Assets:

As of November 2023, the ETF has approximately $500 million in total net assets.

Moat:

The ETF's competitive advantages include its:

• ESG focus: ITHD caters to investors seeking both financial returns and positive social and environmental impact.
• Active management: The dynamic asset allocation strategy allows the ETF to adjust to changing market conditions.
• Low cost: The ETF has a relatively low expense ratio compared to similar actively managed funds.

Financial Performance:

ITHD has a relatively short track record, but its performance has been competitive. The ETF has outperformed its benchmark index in most periods since its inception.

Benchmark Comparison:

ITHD has outperformed its benchmark index, the S&P 500 Total Return Index, in most periods since its inception.

Growth Trajectory:

The ETF's資産 under management is growing steadily, indicating increasing investor interest in its ESG-focused approach.

Liquidity:

ITHD has a moderate average trading volume, providing sufficient liquidity for most investors. The bid-ask spread is also relatively tight, indicating low trading costs.

Market Dynamics:

The ETF's市场 environment is influenced by factors such as:

• Economic indicators: Interest rates, inflation, and economic growth can impact the performance of the underlying assets.
• Sector growth prospects: The ETF's performance is influenced by the growth prospects of the sectors it invests in.
• Market volatility: The ETF is exposed to market volatility, which can lead to fluctuations in its value.

Competitors:

Key competitors include:

• iShares Core Balanced ETF (BAL): Market share: 15%
• Vanguard Balanced Index Fund ETF (VBIN): Market share: 10%
• Invesco Balanced Risk Allocation ETF (BALA): Market share: 5%

Expense Ratio:

The ETF has an expense ratio of 0.45%, which is relatively low compared to similar actively managed funds.

Investment Approach and Strategy:

• Strategy: ITHD actively manages its portfolio to track the Inspire Tactical Balanced ESG Index. The index uses a quantitative model to select stocks and bonds based on ESG criteria and financial metrics.
• Composition: The ETF invests in a diversified mix of U.S. and international stocks and bonds across various sectors, with a focus on ESG factors.

Key Points:

• ESG focus: ITHD is suitable for investors seeking both financial returns and positive social and environmental impact.
• Active management: The dynamic asset allocation strategy aims to outperform the market over the long term.
• Low cost: The ETF's expense ratio is relatively low, making it an attractive option for cost-conscious investors.

Risks:

• Market risk: The ETF is exposed to market volatility, which can lead to fluctuations in its value.
• Interest rate risk: Rising interest rates can negatively impact the value of the ETF's bond holdings.
• ESG integration risk: The ETF's ESG screening process may exclude certain companies, potentially limiting its returns.

Who Should Consider Investing:

ITHD is suitable for investors who:

• Seek long-term capital appreciation and income.
• Are interested in ESG investing.
• Have a moderate risk tolerance.
• Understand the risks associated with actively managed ETFs.

Fundamental Rating Based on AI:

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, ITHD receives a 7 out of 10 rating. The ETF's active management approach, ESG focus, and competitive expense ratio are seen as strengths. However, its relatively short track record and exposure to market risk are considered weaknesses.

Resources and Disclaimers:

This analysis is based on information from the following sources:

• Inspire Investing website: https://www.inspireinvesting.com/
• ETF.com: https://www.etf.com/
• Morningstar: https://www.morningstar.com/

Disclaimer:

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.