Inspire International ESG ETF (WWJD)

Overview

The Inspire International ESG ETF (IGIS) seeks to provide exposure to international equities that meet specific environmental, social, and governance (ESG) criteria. It invests in companies outside the United States that align with Inspire's faith-based and biblical worldview, excluding those involved in certain industries. The strategy focuses on ethical investing principles within a global market context.

Reputation and Reliability

Inspire Investing is known for its focus on biblically responsible investing (BRI) and ESG principles. While a newer entrant compared to some legacy asset managers, it has established a niche following among investors seeking faith-aligned investment products. Its reputation is built on its commitment to its specific ethical screening process.

Management Expertise

The management team at Inspire Investing possesses expertise in ESG research, ethical screening, and portfolio construction within the faith-based investing segment. They leverage proprietary research and methodologies to identify suitable companies.

Goal

To offer investors a way to align their international equity investments with biblically responsible and ESG principles, seeking long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF aims to provide targeted exposure to international companies that meet Inspire's ESG and biblical screening criteria. It is actively managed, employing a specific exclusionary screening process rather than tracking a broad market index.

Composition The ETF primarily holds a diversified portfolio of international equities. The specific composition is determined by the stringent ESG and biblically responsible screens applied by Inspire Investing.

Market Share: As a specialized ETF within the ESG and faith-based investing niche, its market share is relatively small compared to broad international equity ETFs. Precise market share data for this specific niche is difficult to quantify universally but is expected to be below 1%.

Total Net Assets (AUM): 45000000

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Xtrackers MSCI EAFE ESG Leaders ETF (EASG)

Competitive Landscape

The broader international equity ETF market is highly competitive, dominated by large players offering broad market exposure at low costs. Within the ESG space, competition is growing rapidly. IGIS differentiates itself by its specific biblically responsible investing (BRI) overlay, which is a more niche segment than general ESG. Its advantages lie in its unique screening methodology catering to a specific investor base. Disadvantages include potentially higher expense ratios and a more concentrated portfolio compared to broad market ETFs, which could lead to higher tracking error and potentially lower liquidity.

Historical Performance: Past performance is not indicative of future results. Detailed historical performance data for IGIS should be sourced directly from financial data providers or the ETF's prospectus, as it is subject to market fluctuations and the fund's specific investment strategy. For example, year-to-date returns, 1-year, 3-year, and 5-year returns would be relevant.

Benchmark Comparison: As IGIS is not tracking a traditional broad market index, its performance is best compared against its stated objectives and potentially against a custom benchmark that reflects its ESG and BRI criteria. Direct comparison to indices like MSCI EAFE is less meaningful due to the differing investment mandates.

Expense Ratio: 0.59

Average Trading Volume

The average daily trading volume for IGIS is typically modest, indicating lower liquidity compared to larger, more established international equity ETFs.

Bid-Ask Spread

The bid-ask spread for IGIS can be wider than for highly liquid ETFs, reflecting its smaller asset base and trading volume, which may incur higher transaction costs for frequent traders.

Market Environment Factors

Global economic growth, geopolitical events, currency fluctuations, and evolving ESG regulations significantly impact the performance of international equities. Specifically, demand for ethical and faith-based investments can influence the flow of capital into ETFs like IGIS.

Growth Trajectory

The growth trajectory of IGIS is tied to the increasing investor interest in ESG and faith-based investing. Changes to its strategy would likely involve refining its screening criteria or expanding its investment universe while adhering to its core principles.

Competitive Edge

IGIS's primary competitive edge lies in its unique and stringent biblically responsible investing (BRI) framework, which distinguishes it from general ESG ETFs. This specialized approach caters to a devout investor base seeking to align their financial decisions with their faith. The ETF's focus on active screening based on proprietary research provides a curated selection of international companies that meet specific ethical and moral standards. This niche focus allows it to serve a loyal and growing segment of the market.

Volatility

The volatility of IGIS is expected to be in line with that of broad international equity markets, with potential for higher volatility due to its concentrated holdings and specific screening methodology. Specific metrics like 30-day or 1-year historical volatility would be relevant.

Market Risk

The ETF is exposed to the inherent risks of international equity markets, including currency risk, political risk, economic instability in foreign countries, and regulatory changes. Additionally, its specific ESG screening may lead to underperformance if excluded sectors or companies outperform. There's also the risk that the fund's specific ethical screens may be subject to interpretation or change.

Ideal Investor Profile

The ideal investor for IGIS is one who prioritizes aligning their investments with biblically responsible principles and has a strong ethical conviction. They are likely seeking to invest in international markets but want to do so without compromising their faith-based values. Investors should have a long-term investment horizon and be comfortable with the specific ESG and BRI exclusions.

Market Risk

IGIS is best suited for long-term investors who are committed to their faith-based investment principles and are looking for a globally diversified portfolio that reflects these values. It is not intended for active traders due to its niche nature and potentially lower liquidity.

The Inspire International ESG ETF (IGIS) offers a unique approach to international investing by integrating biblically responsible investing (BRI) principles with ESG criteria. It aims to provide exposure to ethical companies worldwide, excluding those that conflict with a faith-based worldview. While its specialized focus serves a distinct investor base, it faces competition from broader ESG and international ETFs. Its performance is tied to global markets and the effectiveness of its proprietary screening, making it best suited for long-term investors prioritizing ethical alignment over maximum market capture.

Data Sources:

• Inspire Investing Official Website
• Financial Data Providers (e.g., Bloomberg, Morningstar)
• ETF 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 conduct their own due diligence and consult with a qualified financial advisor before making investment decisions.