Impact Shares NAACP Minority Empowerment ETF (NACP)

Overview

The Impact Shares NAACP Minority Empowerment ETF (NACP) is designed to invest in companies that have strong racial and ethnic diversity policies and practices. It aims to promote minority empowerment by investing in firms committed to inclusive workplaces and equitable opportunities. It utilizes a proprietary scoring methodology to select companies based on their diversity and inclusion metrics, across various sectors.

Reputation and Reliability

Impact Shares is known for its focus on socially responsible and impact investing. Their reputation is growing as they launch ETFs tied to specific social outcomes.

Management Expertise

Impact Shares partners with non-profit organizations like the NAACP to develop investment strategies, bringing together financial expertise and social mission focus.

Goal

To provide investment results that, before fees and expenses, correspond generally to the performance of the NAACP Minority Empowerment Index.

Investment Approach and Strategy

Strategy: The ETF tracks an index that measures the performance of U.S. companies with strong diversity and inclusion practices, as determined by NAACP standards.

Composition The ETF holds stocks of publicly traded U.S. companies that meet the NAACP's diversity and inclusion criteria, spanning various sectors.

Market Share: NACP's market share within the broader ESG and impact investing space is relatively small compared to larger, more established ETFs.

Total Net Assets (AUM): 7120000

Key Competitors

• DSI
• ESGV
• CRBN

Competitive Landscape

The competitive landscape includes broad ESG ETFs and those focused on specific social issues. NACP's advantage is its focus on racial equity through a partnership with the NAACP, but this niche focus limits its AUM. Disadvantages include lower liquidity and higher expense ratio compared to larger ESG funds.

Historical Performance: Historical performance data requires specific time-series analysis to fully assess, but generally the ETF's performance is influenced by the underlying holdings and market conditions. Need more real time data for numerical analysis

Benchmark Comparison: The ETF's performance should be compared against its benchmark index, the NAACP Minority Empowerment Index, to evaluate its tracking efficiency.

Expense Ratio: 0.76

Average Trading Volume

The ETF's average trading volume is relatively low, which could impact ease of entry and exit.

Bid-Ask Spread

The bid-ask spread can be wider than more liquid ETFs, potentially increasing transaction costs.

Market Environment Factors

Interest in ESG investing, social justice movements, and increasing focus on corporate diversity influence NACP's performance.

Growth Trajectory

Growth trends depend on the increasing adoption of ESG principles by investors and the perceived value of the NAACP's certification.

Competitive Edge

NACP differentiates itself through its partnership with the NAACP, providing a unique focus on minority empowerment that resonates with socially conscious investors. This association provides credibility and a clear mission, appealing to those seeking investments aligned with racial equity goals. It targets companies actively promoting diversity and inclusion, setting it apart from broader ESG funds. The ETF's selection process is based on metrics provided by the NAACP.

Volatility

NACP's volatility will depend on the volatility of the underlying stocks, which can vary across different sectors.

Market Risk

Market risk includes general economic downturns, sector-specific challenges, and changes in investor sentiment towards ESG investments. Additionally, social perception of the NAACP and related controversies may impact performance.

Ideal Investor Profile

The ideal investor is socially conscious, interested in ESG investing with a focus on racial equity, and accepts moderate risk for potential long-term gains.

Market Risk

The ETF is more suitable for long-term investors who prioritize social impact alongside financial returns.

Impact Shares NAACP Minority Empowerment ETF is a unique fund targeting companies that prioritize racial and ethnic diversity. Its partnership with the NAACP provides a distinct appeal to socially conscious investors. However, the ETF's smaller size, higher expense ratio, and lower liquidity are factors to consider. Its performance is tied to the market perception of ESG and its specific criteria, requiring careful consideration for those considering it as part of a broader investment portfolio.

Data Sources:

• Impact Shares Website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

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