Timothy Plan US Large/Mid Cap Core ETF (TPLC)

Overview

The Timothy Plan US Large/Mid Cap Core ETF (TIMP) is an exchange-traded fund that focuses on investing in large and mid-capitalization U.S. equity securities. It aims to provide investors with exposure to companies that adhere to Christian principles, avoiding certain industries. The strategy is to invest in a diversified portfolio of companies demonstrating strong financial health and ethical business practices.

Reputation and Reliability

Timothy Plan is known for its faith-based investment approach, appealing to a specific segment of investors. As a smaller issuer, their market presence is less established than larger financial institutions, but they have a dedicated following.

Management Expertise

The management team's expertise is rooted in applying ethical and faith-based screening to investment decisions, alongside traditional fundamental analysis. Specific details on individual portfolio managers are typically found in fund prospectuses.

Goal

The primary investment goal of TIMP is to achieve long-term capital appreciation while adhering to specific ethical and moral guidelines based on Christian principles.

Investment Approach and Strategy

Strategy: TIMP does not explicitly track a broad market index but rather constructs a portfolio based on proprietary screens that identify companies aligned with its ethical criteria. It aims for core exposure to the U.S. large and mid-cap market.

Composition The ETF primarily holds U.S. equities, focusing on large and mid-capitalization companies. It screens out companies involved in industries such as abortion, alcohol, tobacco, gambling, pornography, and predatory lending.

Market Share: As a niche ETF with an ethical focus, TIMP's market share within the broader US Large/Mid Cap ETF category is very small. Specific, up-to-date percentage figures are not readily available and would require in-depth market analysis.

Total Net Assets (AUM): The Total Net Assets (AUM) for TIMP can fluctuate. As of recent data, it is typically in the tens of millions of dollars, significantly smaller than many mainstream large/mid-cap ETFs.

Key Competitors

• Vanguard S&P 500 ETF (VOO)
• iShares Core S&P 500 ETF (IVV)
• Schwab U.S. Large-Cap ETF (SCHX)
• SPDR S&P 500 ETF Trust (SPY)

Competitive Landscape

The US Large/Mid Cap Core ETF market is dominated by a few large providers offering broad market index tracking ETFs with very low expense ratios. TIMP operates in a niche market, focusing on faith-based investing. Its main disadvantage is potentially lower liquidity and higher expense ratios compared to the giants. Its advantage lies in its ethical screening, attracting a specific investor base not served by broader index funds.

Historical Performance: Historical performance data for TIMP is available through financial data providers. Investors should review its performance over 1-year, 3-year, 5-year, and 10-year periods to assess its track record relative to its objectives and benchmarks.

Benchmark Comparison: TIMP's performance is typically compared against broad large-cap indices like the S&P 500 or Russell 1000, with the understanding that its ethical screening may lead to deviations in sector and style exposures.

Expense Ratio: The expense ratio for TIMP is generally higher than that of passively managed, broad-market ETFs. Specific figures can be found in the ETF's prospectus and on financial data websites.

Average Trading Volume

TIMP's average daily trading volume is typically lower than that of larger, more established ETFs, which may impact the ease of execution for large trades.

Bid-Ask Spread

The bid-ask spread for TIMP may be wider than for highly liquid ETFs, representing a potentially higher cost for active traders to enter and exit positions.

Market Environment Factors

TIMP is influenced by the overall health of the U.S. equity market, interest rate policies, inflation, and geopolitical events. Its ethical screening also means it's affected by the performance of industries excluded from its portfolio and the growth of industries it favors.

Growth Trajectory

As a niche ETF, TIMP's growth trajectory is tied to the increasing demand for socially responsible and faith-based investment options. Changes in its strategy or holdings would typically be driven by adjustments to its ethical screens or market opportunities within its defined universe.

Competitive Edge

TIMP's primary competitive edge is its unwavering commitment to faith-based ethical investing, a niche not served by many mainstream ETFs. This allows it to attract a loyal investor base seeking to align their financial investments with their religious values. The fund's focus on companies with strong financial health and ethical practices can also be a differentiator for value-oriented investors.

Volatility

TIMP's historical volatility is expected to be comparable to that of the broad U.S. large and mid-cap equity market, although its specific holdings may lead to slight variations. Investors should review its standard deviation figures.

Market Risk

Market risk for TIMP stems from the inherent fluctuations in the U.S. stock market. Additionally, the ethical screening process can introduce concentration risk if certain sectors or industries are disproportionately excluded, potentially affecting diversification and performance during specific market cycles.

Ideal Investor Profile

The ideal investor for TIMP is an individual or institution that prioritizes ethical investing aligned with Christian values and seeks exposure to the U.S. large and mid-cap equity market. Investors should also be comfortable with a potentially higher expense ratio and lower liquidity than some other ETFs.

Market Risk

TIMP is best suited for long-term investors who are committed to its faith-based investment philosophy and are not primarily driven by short-term trading opportunities or the absolute lowest expense ratios.

The Timothy Plan US Large/Mid Cap Core ETF (TIMP) offers a faith-based approach to U.S. large and mid-cap equity investing, excluding companies involved in certain morally objectionable industries. While it aims for capital appreciation, its primary appeal lies in its ethical screening, attracting a niche investor base. Its market share is small, and it faces competition from broad-market ETFs with lower costs. Investors should carefully consider its specific ethical criteria, historical performance, and potential liquidity limitations.

Data Sources:

• ETF Provider Website (Timothy Plan)
• Financial Data Aggregators (e.g., Yahoo Finance, Morningstar, ETF.com)
• SEC Filings (Prospectus)

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions. Data points like market share and AUM are subject to change.