SHP ETF Trust - FIS Knights of Columbus Global Belief ETF (KOCG)

Overview

The FIS Knights of Columbus Global Belief ETF (KOCG) seeks to provide long-term capital appreciation by investing in companies that align with Catholic principles. It aims for global diversification and screens investments based on socially responsible criteria rooted in Catholic values.

Reputation and Reliability

SHP ETF Trust is a smaller ETF provider. Their reputation is tied to the values-based investment strategy of the Knights of Columbus, focusing on ethical investing.

Management Expertise

The management team leverages FIS's expertise in financial technology and data analytics combined with the Knights of Columbus's ethical investment guidelines.

Goal

To provide long-term capital appreciation by investing in a globally diversified portfolio of companies that are consistent with Catholic principles.

Investment Approach and Strategy

Strategy: The ETF tracks a custom index that screens companies based on Catholic social teachings, focusing on areas like human dignity, common good, and stewardship.

Composition The ETF holds a diversified portfolio of global equities, primarily focusing on large-cap and mid-cap companies. It excludes companies involved in activities inconsistent with Catholic values, such as abortion, contraception, and embryonic stem cell research.

Market Share: KOCG's market share within the socially responsible investing (SRI) ETF space is relatively small.

Total Net Assets (AUM): 25000000

Key Competitors

• IShares MSCI KLD 400 Social ETF (DSI)
• SPDR S&P 500 ESG ETF (EFIV)
• Vanguard ESG U.S. Stock ETF (ESGV)

Competitive Landscape

The socially responsible investing ETF market is competitive, with many established ETFs focusing on ESG (Environmental, Social, and Governance) factors. KOCG's advantage lies in its specific focus on Catholic values, appealing to a niche market. However, its smaller size and less established track record compared to larger ESG ETFs are disadvantages.

Historical Performance: Historical performance data can be found on financial websites. It should be noted that the ETF is relatively new.

Benchmark Comparison: KOCG's performance should be compared to broad global equity indices as well as other socially responsible ETFs to gauge its effectiveness.

Expense Ratio: 0.59

Average Trading Volume

The average trading volume for KOCG is relatively low, which can impact the ease of buying and selling shares.

Bid-Ask Spread

Due to lower trading volumes, the bid-ask spread may be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Interest rate hikes, geopolitical tensions, and broader economic conditions could affect KOCG. Investor sentiment toward ethical investing plays a key role.

Growth Trajectory

The growth of KOCG is dependent on increasing investor interest in faith-based and socially responsible investing. Expansion of the ETF's marketing and distribution could also drive growth.

Competitive Edge

KOCG's competitive edge is its unique alignment with Catholic values, offering investors a way to invest in companies that reflect their faith. This niche focus differentiates it from broader ESG ETFs. The backing of the Knights of Columbus adds credibility and provides a strong network for promotion. This specific ethical screening resonates with investors looking for faith-based investment options, providing a unique value proposition.

Volatility

Volatility should be analyzed based on historical price fluctuations and compared to similar ETFs and broad market indices.

Market Risk

KOCG is subject to market risk, as its underlying assets are primarily equities. Specific risks also include potential underperformance due to its exclusionary investment strategy.

Ideal Investor Profile

The ideal investor is one who is aligned with Catholic values and seeks to invest in companies that adhere to those principles. It's also for those seeking to align their faith and financial goals.

Market Risk

KOCG is suitable for long-term investors who prioritize ethical considerations and faith-based investing. It may not be suitable for active traders due to lower liquidity.

The FIS Knights of Columbus Global Belief ETF provides a unique investment opportunity for individuals seeking to align their portfolios with Catholic social teachings. Its niche focus differentiates it from broader ESG ETFs. While the ETF's smaller size and liquidity may present challenges, its long-term potential lies in the growing demand for faith-based and socially responsible investing. Investors should carefully consider the ETF's investment strategy, risks, and expenses before investing.

Data Sources:

• ETF.com
• Morningstar.com
• Official ETF Prospectus

Disclaimers:

This analysis is 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. Market data is subject to change.