Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA)

Overview

The Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Developed ex-U.S. Catholic Values Index. It focuses on international developed markets, excluding the U.S., and incorporates Catholic values screens in its selection process, generally avoiding companies involved in activities deemed inconsistent with Catholic teachings.

Reputation and Reliability

Global X is a well-established ETF provider known for its thematic and alternative investment strategies. They have a strong track record of launching and managing specialized ETFs.

Management Expertise

Global X has a dedicated team of portfolio managers and analysts with expertise in ETF management and factor-based investing. They leverage established methodologies to implement investment strategies.

Goal

To provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P Developed ex-U.S. Catholic Values Index.

Investment Approach and Strategy

Strategy: The ETF aims to track the S&P Developed ex-U.S. Catholic Values Index, which applies Catholic values screens to the S&P Developed ex-U.S. BMI Index.

Composition The ETF holds a diversified portfolio of stocks from developed countries outside the United States that align with Catholic values. Holdings typically include companies across various sectors but exclude those involved in activities like abortion, contraception, and weapons manufacturing.

Market Share: CEFA has a niche market share within the broader international developed markets ETF category.

Total Net Assets (AUM): 23730000

Key Competitors

• VEA
• IDEV
• SPDW
• VXUS

Competitive Landscape

The international developed markets ETF industry is highly competitive, with several large, established players. CEFA differentiates itself through its Catholic values screening, appealing to a specific investor base. However, it faces competition from broad market ETFs with lower expense ratios and greater liquidity, like VEA and VXUS.

Historical Performance: Historical performance data (annualized return): 1 Year: 12.11, 3 Year: 0.51, 5 Year: 4.92, 10 Year: N/A. These values represent the annualized return percentages.

Benchmark Comparison: The ETF's performance is benchmarked against the S&P Developed ex-U.S. Catholic Values Index. Tracking error may exist due to fees, expenses, and index replication strategies.

Expense Ratio: 0.29

Average Trading Volume

The average trading volume for CEFA is relatively low, which can affect order execution and price impact.

Bid-Ask Spread

The bid-ask spread for CEFA can be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

CEFA is affected by global economic conditions, currency fluctuations, and geopolitical events impacting developed markets. Sector-specific trends and the performance of companies adhering to Catholic values also influence its performance.

Growth Trajectory

The growth trajectory of CEFA depends on the demand for socially responsible investing, particularly among investors aligned with Catholic values. Changes to the index methodology or the ETF's expense ratio could also impact its growth.

Competitive Edge

CEFA's competitive advantage lies in its unique investment strategy that combines international developed market exposure with Catholic values screens. This niche focus appeals to investors seeking to align their investments with their religious beliefs. While larger ETFs offer broader market exposure, CEFA provides a specific ethical overlay that caters to a distinct segment of the investment community. This focus creates a competitive edge, albeit within a smaller market segment, but other than that it is difficult to compete with funds with larger assets under management and cheaper expense ratios.

Volatility

CEFA's volatility is expected to be similar to that of other international developed markets ETFs, reflecting the inherent risk of equity investments and currency fluctuations.

Market Risk

The primary market risk is related to the performance of the underlying stocks in developed ex-U.S. markets. Additionally, the ETF is exposed to currency risk, as returns are affected by exchange rate movements.

Ideal Investor Profile

The ideal investor for CEFA is someone who seeks international developed market exposure and wants to align their investments with Catholic values. This includes individuals, families, and religious organizations who prioritize ethical considerations in their investment decisions.

Market Risk

CEFA is suitable for long-term investors who are comfortable with the risks associated with equity investments and currency fluctuations. It may also appeal to passive index followers seeking a socially responsible investment option.

The Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA) offers exposure to developed ex-U.S. equities while adhering to Catholic values screens. It appeals to investors seeking socially responsible investments aligned with religious principles. While CEFA distinguishes itself with a unique investment thesis, other international ETFs have much higher assets under management. Therefore, CEFA's overall success is dependent on increasing demand for niche investment strategies and effective marketing to its target audience.

Data Sources:

• Global X ETFs website
• S&P Dow Jones Indices website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Performance data is historical and not indicative of future results. Market data is as of a specific date and is subject to change.