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

Overview

The Inspire Fidelis Multi Factor ESG ETF (FDLS) seeks long-term capital appreciation by investing in U.S. companies that align with biblical values and exhibit strong financial characteristics and ESG practices. It uses a multi-factor model that selects companies based on value, momentum, quality, and low volatility.

Reputation and Reliability

Inspire Investing is known for its biblically responsible investing (BRI) approach and has a growing presence in the ETF market. They are generally considered reliable within their specific investment niche.

Management Expertise

The management team at Inspire Investing has experience in faith-based investing and uses quantitative models to select and manage investments.

Goal

Seeks long-term capital appreciation while adhering to biblically responsible investing principles.

Investment Approach and Strategy

Strategy: The ETF employs a multi-factor investment strategy, focusing on value, momentum, quality, and low volatility factors, while also integrating environmental, social, and governance (ESG) criteria and biblical values.

Composition The ETF holds a portfolio of U.S. equity securities selected based on the multi-factor and ESG/BRI criteria.

Market Share: Relatively small compared to broader ESG ETFs, as it caters to a niche market of faith-based investors.

Total Net Assets (AUM): 55789352

Key Competitors

• Xtrackers S&P 500 ESG ETF (SNPE)
• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)

Competitive Landscape

The ETF industry is highly competitive, with many ESG and socially responsible investment options available. FDLS differentiates itself with its biblically responsible investing focus, which may limit its appeal but also provides a unique selling point. Competitors generally have lower expense ratios and broader market appeal.

Historical Performance: Historical performance data needs to be checked from official sources but is subject to market volatility and fund management effectiveness.

Benchmark Comparison: The ETF's performance should be compared to relevant ESG benchmarks and broad market indices to assess its performance and factor exposures.

Expense Ratio: 0.59

Average Trading Volume

FDLS's average trading volume is relatively low, which can impact the ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, reflecting the lower trading volume.

Market Environment Factors

Economic growth, interest rates, inflation, and investor sentiment towards ESG and responsible investing all influence the ETF. Specific attention towards values-based investment sentiment is a key factor.

Growth Trajectory

The ETF's growth depends on the increasing adoption of biblically responsible investing and its ability to attract investors seeking faith-based investment options. Strategy changes are possible as the faith-based ESG market evolves.

Competitive Edge

FDLS's competitive advantage lies in its unique biblically responsible investing (BRI) mandate, which caters to a specific niche of investors seeking to align their investments with their religious beliefs. This focus provides a differentiating factor compared to broad-based ESG ETFs. However, this focus may also limit its potential investor base compared to funds with broader ESG appeal. Inspire Investing's brand recognition in the BRI space further enhances its competitive edge.

Volatility

Volatility would depend on the underlying stock holdings, which may be impacted by specific sector or company news and the overall market.

Market Risk

The ETF is subject to market risk, meaning the value of its holdings can decline due to broader market downturns or economic factors. Specific sectors within the holdings also pose a market risk.

Ideal Investor Profile

The ideal investor for FDLS is one who seeks long-term capital appreciation while adhering to biblically responsible investing principles. They are likely to be individuals or institutions who prioritize faith-based values in their investment decisions.

Market Risk

FDLS is likely best for long-term investors who are comfortable with the potential for market fluctuations and prioritize alignment with their religious values.

The Inspire Fidelis Multi Factor ESG ETF (FDLS) offers investors exposure to U.S. equities that meet both financial criteria and biblically responsible investing standards. Its multi-factor approach and ESG integration aim to provide long-term capital appreciation while adhering to specific ethical guidelines. However, its niche focus might result in lower liquidity and higher expense ratio compared to broader ESG ETFs. It's suitable for long-term investors seeking to align their investments with faith-based values and FDLS is a good investment if investors seek to grow their money while investing in companies with good ESG scores.

Data Sources:

• Inspire Investing Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions.