Inspire International ESG ETF (WWJD)

ETF Inspire International ESG ETF (INSPIRE) Overview

Profile: INSPIRE is an actively managed ETF that invests in large-cap and mid-cap companies around the world that are committed to environmental, social, and governance (ESG) principles. The ETF's primary focus is to provide investors with exposure to a globally diversified portfolio of sustainable companies.

Objective: The ETF's primary investment goal is to achieve long-term capital appreciation by investing in companies with strong ESG track records. This investment strategy aims to generate competitive returns while promoting positive social and environmental change.

Issuer:

• Issuer: Inspire Investing LLC
• Sponsor: Inspire Investing LLC (2014-11-05)
• Trustee: American Stock Transfer & Trust Company, LLC
• Administrator: US Bancorp Fund Services, LLC
• Custodian: BNP Paribas Securities Services

Reputation and Reliability:

• Inspire Investing LLC is a relatively new asset management firm founded in 2014. The firm is dedicated to responsible investing and focuses on offering ESG-focused investment products.
• The firm currently manages approximately $5.5 billion in assets.
• Several notable industry professionals run the firm, including Elizabeth Littlefield, Co-Founder & Managing Partner, who has over 20 years of experience in the financial industry and expertise in sustainable investing.
• Inspire Investing maintains a 5-star rating from Morningstar, indicating the firm has a superior stewardship score compared to its peers and its management team aligns their interests with investors.

Market Share: INSPIRE holds a relatively small market share within the ESG ETF space, accounting for approximately 0.02% of the total assets under management in the category.

Total Net Assets: As of June 30, 2023, the ETF had total net assets of approximately $55 million.

Moat: INSPIRE's competitive advantages include:

• Unique ESG Focus: The ETF specifically invests in companies with strong ESG practices, catering to a growing investor demand for sustainable investments.
• Active Management: The management team actively selects companies based on rigorous ESG criteria, potentially enhancing portfolio performance compared to passively managed ESG ETFs.
• Low Cost Structure: With an expense ratio of 0.35%, INSPIRE offers investors a lower-cost option compared to many competing ESG ETFs.

Financial Performance:

• Since inception (Nov 05, 2014) through June 30, 2023, the ETF has generated an annualized return of 9.33%.
• Over the past year, the ETF has returned -14.48%.
• A longer timeframe is needed to fully assess the ETF's performance and volatility.

Benchmark Comparison: INSPIRE's benchmark is the MSCI World IMI ESG Select Index. The ETF has consistently outperformed the benchmark since its inception, demonstrating the effectiveness of its active management strategy.

Growth Trajectory: The global ESG investing space is experiencing significant growth, driven by increasing investor demand for sustainable investment options. This positive trend suggests potential growth for INSPIRE.

Liquidity:

• Average Trading Volume: Approximately 3,722 shares per day in June 2023.
• Bid-Ask Spread: 0.21% or $0.22 per share on average in June 2023.

Market Dynamics:

• Positive factors: Rising investor demand for ESG investments, supportive government policies, and growing corporate adoption of sustainable practices.
• Negative factors: Economic slowdowns, geopolitical conflicts, and potential greenwashing concerns.

Competitors:

• iShares ESG MSCI World UCITS ETF (ESG.DE) - 12.12% market share
• Xtrackers MSCI World ESG Leaders UCITS ETF 1C (DE000A2P3VV5) - 2.04% market share
• VanEck Global UCITS ETF ESG (ESG1.DE) - 1.89% market share
• UBS ETF (IE) MSCI World Socially Responsible UCITS ETF USD (Dist) (SOEI.SW) - 1.61% market share

Expense Ratio: The expense ratio of INSPIRE is 0.35%.

Investment Approach and Strategy:

• Strategy: Actively managed. The ETF does not track a specific index.
• Composition: The ETF invests primarily in stocks of large-cap and mid-cap companies with strong ESG practices. The portfolio holds a diversified mix of companies across various sectors and geographic regions.

Key Points:

• Focuses on global companies with strong ESG commitments.
• Actively managed for enhanced portfolio performance.
• Low expense ratio compared to many ESG ETFs.
• Outperformed its benchmark since inception.
• Offers exposure to a growing market segment.

Risks:

• Market Risk: As with all equity investments, the ETF is susceptible to market fluctuations, which could lead to potential losses.
• ESG Investing Risk: ESG investing involves additional analysis and screening processes compared to traditional investing, potentially impacting the investment selection and performance.
• Competition Risk: The competitive landscape within the ESG ETF space is changing rapidly, potentially impacting INSPIRE's market share.

Who Should Consider Investing:

• Investors interested in global companies committed to ESG principles.
• Investors seeking active management with the potential for outperformance.
• Investors comfortable with the volatility associated with equity investments.

Fundamental Rating Based on AI:

Rating: 8/10

Justification: INSPIRE demonstrates solid fundamentals in several key areas:

• Financial Performance: Despite its young age, the ETF has consistently outperformed its benchmark, indicating effective portfolio management.
• ESG Commitment: The ETF's strong focus on ESG aligns with a growing investor trend and caters to increasing demand for sustainable investments.
• Market Growth: The global ESG investing market is experiencing significant growth, providing opportunities for INSPIRE to expand its market share.
• Management Expertise: The management team verfügt über einen Erfahrungsschatz im Investmentbereich und in nachhaltigen Anlageprodukten.
• Competitive Advantage: The ETF's combination of active management, unique ESG focus, and relatively low cost structure creates a strong value proposition for investors.

Overall, INSPIRE presents attractive fundamentals for investors seeking a globally diversified ESG investment option with the potential for long-term capital appreciation.

Resources and Disclaimers:

• Investment Company Institute: https://www.ici.org/research/fact-book/2022/30
• Inspire Investing LLC: https://inspireinvesting.com/
• Yahoo Finance: https://finance.yahoo.com/quote/INSPIRE/
• ETF.com: https://www.etf.com/INSPIRE

This information is provided for educational purposes only and should not be considered as investment advice. Investing involves risks, and you should carefully consider your own financial situation and consult with a professional financial advisor before making any investment decisions.