Northern Lights Fund Trust IV - Inspire Fidelis Multi Factor ESG ETF (FDLS)

Overview

The Inspire Fidelis Multi Factor ESG ETF (FDLS) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the Fidelis Multi Factor ESG Index. The fund focuses on companies that align with biblical values and exhibit favorable multi-factor characteristics such as value, quality, and momentum, while also meeting ESG criteria.

Reputation and Reliability

Northern Lights Fund Trust IV is an established fund trust known for offering diverse investment solutions, including ETFs focused on socially responsible investing.

Management Expertise

The management team comprises experienced professionals in the financial industry with expertise in portfolio management, ESG investing, and index tracking.

Goal

The primary investment goal of FDLS is to replicate the performance of the Fidelis Multi Factor ESG Index, while adhering to its values-based and ESG principles.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, aiming to track the Fidelis Multi Factor ESG Index. This index selects companies based on factors such as biblical values alignment, ESG scores, value, quality, and momentum.

Composition FDLS holds a diversified portfolio of U.S. equities that meet the index's criteria. It primarily invests in common stocks across various sectors.

Market Share: Market share data for FDLS specifically is not widely available, as it is a smaller ETF in a competitive landscape.

Total Net Assets (AUM): 36165600

Key Competitors

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG)

Competitive Landscape

The ESG ETF market is highly competitive, with several large players dominating the market share. FDLS differentiates itself through its explicit alignment with biblical values in addition to standard ESG factors. A disadvantage of FDLS is its smaller AUM and trading volume compared to larger competitors like ESGU and ESGV. An advantage of FDLS lies in its unique screening process, which appeals to investors seeking values-based investments.

Historical Performance: Historical performance data can be obtained from financial data providers, but varies based on the timeframe. Refer to official fund documents for precise information.

Benchmark Comparison: The ETF's performance should be compared against the Fidelis Multi Factor ESG Index to assess tracking effectiveness. Refer to official fund documents for precise information.

Expense Ratio: 0.49

Average Trading Volume

The average trading volume is modest, which can affect trade execution, therefore it may be less liquid than funds with much higher average volume.

Bid-Ask Spread

The bid-ask spread may vary but generally hovers around a small percentage point, which can be found on most popular stock quoting websites.

Market Environment Factors

FDLS is affected by overall market conditions, investor sentiment towards ESG and values-based investing, and sector-specific trends in its portfolio holdings.

Growth Trajectory

The ETF's growth depends on its ability to attract investors seeking socially responsible investments aligned with biblical values, and its performance relative to other ESG ETFs.

Competitive Edge

FDLS distinguishes itself by integrating biblical values into its ESG screening process, appealing to a specific niche of investors. Its multi-factor approach, considering value, quality, and momentum, aims to enhance risk-adjusted returns. This unique combination provides a competitive edge in the crowded ESG ETF market by offering a values-based investment option. The fund's targeted approach may resonate strongly with investors who prioritize faith-based principles alongside financial performance. Finally, the focus on specific values might lead to a more loyal investor base.

Volatility

FDLS's volatility is influenced by the volatility of its underlying holdings and the overall market. Historical volatility data should be analyzed from financial data providers.

Market Risk

The primary market risk involves fluctuations in the prices of the underlying equity holdings, which are subject to economic cycles, industry trends, and company-specific factors.

Ideal Investor Profile

The ideal investor for FDLS is someone seeking socially responsible investments aligned with biblical values and a multi-factor approach. These investors prioritize ethical considerations and are comfortable with the potential risks and rewards of equity investing.

Market Risk

FDLS is suitable for long-term investors looking to integrate their values into their investment portfolio. Active traders may find the liquidity less attractive, while passive index followers might prefer broader, lower-cost ESG ETFs.

The Inspire Fidelis Multi Factor ESG ETF (FDLS) offers a unique investment option for those seeking socially responsible investments aligned with biblical values. Its multi-factor approach seeks to enhance returns while adhering to ESG principles. While its AUM is smaller compared to larger competitors, FDLS's distinctive screening process provides a competitive edge. The ETF is suitable for long-term investors who prioritize values-based investing and are comfortable with equity market risks. Investors should consider its expense ratio and liquidity when evaluating FDLS.

Data Sources:

• InspireETF.com
• ETF.com
• Morningstar.com
• Bloomberg.com

Disclaimers:

The data provided is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is approximate and may vary based on reporting sources and timeframes.