Inspire Small/Mid Cap Impact ETF (ISMD)

Overview

Inspire Small/Mid Cap Impact ETF (ISMD) seeks to provide investment results that correspond generally to the performance of the Inspire Small/Mid Cap Impact Equal Weight Index. The fund invests in a broadly diversified basket of small and mid-capitalization US stocks that pass Inspire's Biblically Responsible Investing (BRI) screening criteria. It focuses on companies demonstrating a positive impact through their products, services, and practices.

Reputation and Reliability

Inspire ETFs is known for its Biblically Responsible Investing approach and has built a reputation for offering faith-based investment options.

Management Expertise

Inspire ETFs' management team has experience in creating and managing faith-based investment products, adhering to specific ethical and moral guidelines.

Goal

To provide investment results that generally correspond to the performance of the Inspire Small/Mid Cap Impact Equal Weight Index.

Investment Approach and Strategy

Strategy: The ETF aims to track an equal-weighted index of small and mid-cap companies that meet Inspire's Biblically Responsible Investing (BRI) criteria.

Composition The ETF primarily holds stocks of small and mid-capitalization companies in the United States.

Market Share: ISMD's market share within the Biblically Responsible Investing (BRI) ETF category is growing, though it competes with larger, more established funds.

Total Net Assets (AUM): 124496450

Key Competitors

• SPDR S&P 600 Small Cap ETF (SPSM)
• iShares Core S&P Small-Cap ETF (IJR)
• Vanguard Small-Cap ETF (VB)
• iShares ESG Aware MSCI USA Small-Cap ETF (ESML)

Competitive Landscape

The competitive landscape is dominated by broad market small-cap ETFs like IJR and VB. ISMD differentiates itself through its BRI screening, attracting investors seeking values-aligned investments. However, it faces challenges in terms of scale and liquidity compared to larger competitors. ESML is in the ESG sector.

Historical Performance: Historical performance data should be obtained from credible financial sources to accurately reflect the ETF's returns over various periods.

Benchmark Comparison: A comparison against the Russell 2000 or similar small/mid-cap indices can assess the ETF's effectiveness.

Expense Ratio: 0.49

Average Trading Volume

ISMD exhibits moderate liquidity, which can fluctuate based on market conditions and investor interest.

Bid-Ask Spread

The bid-ask spread is typically wider than larger, more liquid ETFs, reflecting its smaller size and trading volume.

Market Environment Factors

Economic growth, interest rate changes, and sector-specific trends within the small/mid-cap market can significantly influence ISMD's performance. Broader social trends related to ethical investing can also create momentum.

Growth Trajectory

The ETF's growth trajectory depends on the increasing adoption of BRI investing and its ability to attract investors seeking values-aligned portfolios. The trend toward ESG investing could help push the growth higher.

Competitive Edge

ISMD's competitive edge lies in its Biblically Responsible Investing (BRI) screening methodology, which appeals to investors seeking to align their investments with their religious beliefs. This niche focus creates a differentiated product in a crowded ETF market. Inspire ETFs' expertise in faith-based investing further strengthens its position. The equal-weighted index also provides some diversification benefits compared to market-cap-weighted indices.

Volatility

As a small/mid-cap ETF, ISMD may exhibit higher volatility compared to large-cap ETFs due to the inherent risks associated with smaller companies.

Market Risk

ISMD is subject to market risk, including economic downturns, sector-specific challenges, and overall market sentiment impacting small and mid-cap equities.

Ideal Investor Profile

The ideal investor for ISMD is one who seeks to align their investments with Biblical values and is comfortable with the risks associated with small and mid-cap stocks.

Market Risk

ISMD is suitable for long-term investors who prioritize ethical and faith-based investing and can tolerate moderate to high levels of risk.

Inspire Small/Mid Cap Impact ETF (ISMD) is a niche ETF providing exposure to small and mid-cap US companies that meet Biblically Responsible Investing (BRI) criteria. Its equal-weighted index offers diversification, while its focus on BRI aligns with the values of faith-based investors. However, its smaller size and lower liquidity compared to broad market ETFs may pose challenges. Investors should consider their risk tolerance and investment goals before investing in ISMD.

Data Sources:

• Inspire ETFs Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change rapidly.