SP Funds Trust (SPWO)

Overview

SP Funds Trust offers a range of ETFs focusing on specific investment themes, often incorporating environmental, social, and governance (ESG) factors or Sharia law compliance. Asset allocation varies by fund, with strategies designed to align with their chosen themes.

Reputation and Reliability

SP Funds is a relatively newer ETF issuer focusing on thematic investing, particularly in ESG and Sharia-compliant sectors. Reputation is still developing as they gain market traction.

Management Expertise

Management expertise varies depending on the specific fund, leveraging portfolio managers with experience in thematic and index-based investing.

Goal

The investment goal of SP Funds Trust varies by fund, but generally involves providing investment results that correspond to the price and yield performance of specific indices or thematic benchmarks.

Investment Approach and Strategy

Strategy: SP Funds Trust typically tracks specific indices or thematic benchmarks related to ESG, Sharia compliance, or other specialized areas.

Composition The assets held by the ETFs vary significantly depending on the fund, and may include stocks, bonds, and other financial instruments tailored to meet the fund's investment objective.

Market Share: Market share varies greatly depending on the specific SP Funds ETF. Individually, they have small market shares within their respective niches.

Total Net Assets (AUM): Total AUM varies by fund and is typically lower compared to more established ETF providers. Total AUM for each fund can range from a few million to tens of millions of dollars.

Key Competitors

• IShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Wahed FTSE USA Shariah ETF (HLAL)

Competitive Landscape

The ETF industry is highly competitive. SP Funds Trust competes with larger, more established ETF providers like iShares and Vanguard. SP Funds often focuses on niche markets, offering specialized ETFs that may not be available from larger providers. However, their relatively small AUM can be a disadvantage compared to competitors with greater economies of scale and brand recognition.

Historical Performance: Historical performance varies significantly depending on the specific SP Funds ETF. Data needs to be gathered on a per-fund basis to determine historical returns and volatility.

Benchmark Comparison: Benchmark comparison depends on the specific fund and the index it tracks. Performance data is available on the fund's factsheet.

Expense Ratio: Expense ratios vary by fund, typically ranging from 0.49% to 0.79%.

Average Trading Volume

Average trading volume varies by ETF but is generally lower for SP Funds ETFs than more widely held ETFs, indicating lower liquidity.

Bid-Ask Spread

Bid-ask spreads can be wider for SP Funds ETFs than for more actively traded ETFs, potentially increasing trading costs.

Market Environment Factors

Market environment factors include investor interest in ESG and Sharia-compliant investments, which can drive demand for SP Funds ETFs. Economic conditions and sector performance also influence the performance of specific funds.

Growth Trajectory

Growth trends are tied to the increasing adoption of ESG and Sharia-compliant investing strategies. Changes to strategy and holdings vary by fund and are disclosed in fund prospectuses and reports.

Competitive Edge

SP Funds Trust distinguishes itself by offering niche ETF products such as Sharia-compliant and ESG-focused funds that may not be widely available from larger ETF providers. This specialized approach allows it to target specific investor preferences. Furthermore, SP Funds is known for innovation in the thematic ETF space, allowing it to differentiate itself from competitors by focusing on specific underserved investor needs. This niche focus potentially creates a competitive advantage, particularly for investors seeking specific ethical or religious investment options. However, overall the moat is relatively weak due to its smaller AUM and lower liquidity compared to its larger competitors.

Volatility

Volatility depends on the specific underlying assets of each SP Funds ETF. Some funds may be more volatile than broad market indices depending on their sector or thematic focus.

Market Risk

Market risk is inherent in the underlying assets of each ETF. Sector-specific funds are subject to sector-specific risks, while ESG-focused funds may underperform traditional indices if ESG considerations lead to exclusion of high-performing stocks.

Ideal Investor Profile

The ideal investor profile varies by fund. Generally, investors interested in ESG, Sharia compliance, or other thematic investment strategies are suitable for SP Funds ETFs.

Market Risk

SP Funds ETFs are suitable for both long-term investors and active traders seeking exposure to specific thematic investments. They may not be ideal for passive index followers seeking broad market exposure.

SP Funds Trust offers a suite of ETFs focusing on niche investment themes, particularly ESG and Sharia-compliant strategies. While providing specialized investment options, SP Funds face stiff competition from larger ETF providers with greater AUM and liquidity. Investors should carefully consider the specific investment objectives, risks, and expense ratios of each fund before investing. Because of the smaller AUM, investors must understand that lower liquidity is expected and should be considered before investing. Overall, these ETFs are best suited for investors seeking specific thematic exposure and are willing to accept potentially lower liquidity and higher expense ratios.

Data Sources:

• SP Funds Trust Official Website
• ETF.com
• Morningstar.com
• Yahoo Finance

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Market data is subject to change.