Inspire Faithward Mid Cap Momentum ESG ETF (GLRY)

Overview

The Inspire Faithward Mid Cap Momentum ESG ETF is an actively managed exchange-traded fund that seeks to invest in mid-capitalization U.S. companies exhibiting strong momentum characteristics and adhering to specific Environmental, Social, and Governance (ESG) principles, with a faith-based screening overlay.

Reputation and Reliability

Inspire Investing is known for its focus on faith-based and biblically responsible investing. They aim to provide investment solutions aligned with Christian values. Their reputation is generally positive within the faith-based investment community.

Management Expertise

Information on the specific management team's extensive track record for this particular ETF is not readily available in public domain, but Inspire Investing generally emphasizes a disciplined approach to ESG integration and momentum investing.

Goal

To provide long-term capital appreciation by investing in mid-capitalization U.S. equity securities that demonstrate positive price momentum and meet Inspire's faith-based and ESG criteria.

Investment Approach and Strategy

Strategy: This ETF is actively managed, meaning it does not aim to track a specific index. Instead, the fund managers actively select securities based on their proprietary methodology combining momentum factors with faith-based and ESG screens.

Composition The ETF primarily holds a diversified portfolio of U.S. mid-capitalization stocks. The selection process involves screening for positive price momentum, as well as adherence to biblical and ESG principles, which may exclude companies involved in certain industries.

Market Share: As a specialized ESG and faith-based ETF, its market share within the broader mid-cap momentum ETF universe is likely to be relatively small, catering to a niche investor base.

Total Net Assets (AUM):

Key Competitors

• iShares MSCI USA ESG Select ETF (SUSA)
• Vanguard Mid-Cap Growth ETF (VO)
• iShares MSCI USA Momentum Factor ETF (MTUM)

Competitive Landscape

The mid-cap momentum ETF landscape is competitive, with many large providers offering broad market or factor-based ETFs. Inspire Faithward Mid Cap Momentum ESG ETF's primary differentiator is its faith-based screening, which appeals to a specific segment of investors. Its disadvantage may be its niche focus, potentially leading to lower liquidity and higher expense ratios compared to broader ETFs. Advantages lie in its alignment with specific investor values.

Historical Performance: Historical performance data for this specific ETF is limited due to its potentially newer or less widely tracked status. A comprehensive review requires access to its specific track record over various periods.

Benchmark Comparison: As an actively managed fund with unique screening criteria, its direct benchmark comparison might be less straightforward. Performance is typically assessed against broader mid-cap growth or momentum indices, while accounting for its ESG and faith-based overlay.

Expense Ratio:

Average Trading Volume

The average trading volume for the ETF is expected to be lower than that of larger, more established ETFs, indicating potentially less liquidity.

Bid-Ask Spread

The bid-ask spread for this ETF may be wider than that of highly liquid ETFs, which could increase trading costs for investors.

Market Environment Factors

The ETF is influenced by factors affecting the mid-cap U.S. equity market, investor sentiment towards ESG investing, and the broader economic outlook. Growth prospects for mid-cap companies and the increasing demand for socially responsible investments are key drivers.

Growth Trajectory

The growth trajectory of the ETF will depend on its ability to attract assets from investors seeking both momentum and faith-based ESG alignment, as well as the performance of its selected mid-cap companies. Changes to strategy and holdings would be driven by active management decisions and evolving market conditions.

Competitive Edge

The ETF's primary competitive edge lies in its unique integration of faith-based values with momentum and ESG investing principles, catering to a specific and growing segment of ethically-minded investors. This niche focus allows it to differentiate itself from broader ESG or momentum ETFs by offering a solution aligned with Christian financial stewardship.

Volatility

As a mid-cap momentum strategy, the ETF may exhibit higher volatility compared to large-cap or value-oriented investments, especially during market downturns. Momentum strategies can be prone to sharp reversals.

Market Risk

The ETF is subject to market risk, which is the risk of losses due to factors that affect the overall performance of financial markets, such as economic downturns, interest rate changes, and geopolitical events. Specific risks include the volatility of mid-cap stocks and the potential impact of ESG and faith-based exclusions on portfolio diversification and performance.

Ideal Investor Profile

The ideal investor is a U.S.-based individual or institution seeking capital appreciation from mid-capitalization U.S. equities, who also prioritizes investing in alignment with their Christian faith and ESG principles. They should have a moderate to high risk tolerance.

Market Risk

This ETF is likely best suited for long-term investors who believe in the principles of faith-based and ESG investing and are seeking exposure to companies with positive momentum. It is less suited for active traders due to potential liquidity constraints.

The Inspire Faithward Mid Cap Momentum ESG ETF offers a unique investment opportunity for those seeking to align their portfolios with Christian values, ESG principles, and the potential growth of mid-cap companies with positive momentum. While its niche focus provides a distinct advantage for its target audience, it may come with considerations regarding liquidity and potential volatility inherent in momentum strategies. Investors should carefully consider its actively managed nature and specific screening criteria.

Data Sources:

• Inspire Investing official website
• Financial data providers (e.g., ETF databases, financial news outlets)

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. Investment decisions should be based on individual financial circumstances and consultation with a qualified financial advisor. Data accuracy and completeness may vary, and market conditions are subject to change.