Impact Shares NAACP Minority Empowerment ETF (NACP)

Overview

The Impact Shares NAACP Minority Empowerment ETF (NACP) is an actively managed exchange-traded fund focused on investing in companies that demonstrate a commitment to diversity and inclusion, as evaluated by the NAACP. Its primary focus is on empowering minority communities through corporate engagement and investment in companies with strong diversity metrics.

Reputation and Reliability

Impact Shares is a relatively new entrant in the ETF space, but its partnership with the NAACP lends significant credibility and a unique mission-driven approach. The NAACP has a long-standing reputation for advocacy and social justice.

Management Expertise

Information on the specific management team's expertise for NACP is not extensively detailed publicly, but the fund operates under the guidance of Impact Shares' investment team, focusing on ESG principles and active engagement.

Goal

To achieve long-term capital appreciation by investing in companies that meet specific criteria for minority empowerment, diversity, and inclusion, as assessed by the NAACP.

Investment Approach and Strategy

Strategy: NACP is an actively managed ETF. It does not track a specific index but rather selects companies based on proprietary research and engagement with the NAACP on diversity and inclusion metrics.

Composition The ETF primarily holds a diversified portfolio of U.S. large-cap and mid-cap equities. The selection criteria prioritize companies with strong performance in areas such as board diversity, workforce diversity, and supplier diversity.

Market Share: As a niche ETF with an active management strategy and a specific impact focus, its market share is relatively small compared to broad market ETFs.

Total Net Assets (AUM): 38590000

Key Competitors

• iShares MSCI KLD 400 Social ETF (DSI)
• Vanguard FTSE Socially Responsible Investing ETF (VFTAX)
• Xtrackers MSCI EAFE ESG Leaders ETF (QSGE)

Competitive Landscape

The ESG and socially responsible investing ETF landscape is increasingly competitive, with many funds offering diversified portfolios based on various ethical and environmental criteria. NACP differentiates itself through its specific focus on minority empowerment and its direct partnership with the NAACP, offering a more targeted impact. However, its active management and potentially narrower investment universe could lead to higher expense ratios and different performance characteristics compared to passively managed ESG ETFs. A key advantage is its unique mission, while a disadvantage could be its smaller scale and less established track record compared to larger ESG ETF providers.

Historical Performance: Historical performance data for NACP shows a mixed track record. Over the past year, it has experienced fluctuations, with specific returns depending on market conditions and the performance of its selected companies. Detailed year-over-year data is available from financial data providers.

Benchmark Comparison: NACP's performance is not tied to a specific index, making direct benchmark comparison challenging. Its performance is assessed against its own investment objective and the broader market for impact investing and ESG funds.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume for NACP is moderate, indicating generally sufficient liquidity for most retail investors, though institutional traders may find it less liquid than larger ETFs.

Bid-Ask Spread

The bid-ask spread for NACP is typically within a reasonable range for an ETF of its size, suggesting relatively efficient trading costs for typical investors.

Market Environment Factors

NACP is influenced by the growing interest in ESG investing, corporate diversity initiatives, and social justice movements. Economic indicators affecting general market sentiment and corporate earnings also play a significant role. The increasing focus on Diversity, Equity, and Inclusion (DEI) by corporations and investors is a tailwind for this ETF.

Growth Trajectory

The ETF's growth trajectory is tied to the broader adoption of impact investing and the perceived effectiveness of its strategy in driving positive change. Changes in holdings will occur as the investment team actively manages the portfolio based on ongoing company assessments and engagement.

Competitive Edge

NACP's primary competitive edge lies in its unique mission-driven approach and its direct affiliation with the NAACP. This partnership provides a distinct lens for evaluating corporate diversity and empowerment, potentially attracting investors seeking to align their investments with specific social impact goals. The active management strategy allows for targeted company selection and engagement, aiming to influence corporate behavior positively. This focused niche differentiates it from broader ESG funds, offering a specialized impact opportunity.

Volatility

As an actively managed ETF focused on a specific segment of the market, NACP may exhibit volatility influenced by the performance of its underlying holdings and broader market sentiment towards ESG and impact investments. Its historical volatility should be reviewed against broader market indices.

Market Risk

The ETF is subject to market risk, as the value of its equity holdings can decline due to overall economic downturns, industry-specific challenges, or geopolitical events. Concentration risk might also exist if certain sectors or a few key companies dominate its portfolio, amplifying the impact of any negative developments within those areas.

Ideal Investor Profile

The ideal investor for NACP is someone who is seeking to make a positive social impact by investing in companies that prioritize minority empowerment and diversity. This investor is likely socially conscious, values ethical investing, and believes in the power of capital to drive social change. They are comfortable with an actively managed fund and understand the potential for both financial returns and social impact.

Market Risk

NACP is best suited for long-term investors who are aligned with its mission and believe in the long-term value creation potential of diverse and inclusive companies. It is less suited for active traders seeking short-term gains or investors solely focused on tracking a broad market index.

The Impact Shares NAACP Minority Empowerment ETF (NACP) is an actively managed fund dedicated to investing in companies committed to minority empowerment and diversity. Its unique partnership with the NAACP provides a distinct approach to identifying investment opportunities, aiming for both financial returns and social impact. While operating in a growing ESG market, NACP differentiates itself through its specific focus. Investors should consider its active management, expense ratio, and the inherent risks associated with equity investments and niche market focus when evaluating its suitability for their portfolios.

Data Sources:

• Impact Shares Official Website
• Financial Data Provider (e.g., Morningstar, ETF.com)
• SEC Filings

Disclaimers:

This JSON output is for informational purposes only and does not constitute investment advice. Performance data, AUM, and market share are subject to change. Investors should conduct their own due diligence and consult with a qualified financial advisor before making investment decisions.