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Is Inspire International ETF (WWJD) a Strong ETF Right Now?
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The Inspire International ETF (WWJD - Free Report) was launched on 09/30/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
WWJD is managed by Inspire, and this fund has amassed over $206.61 million, which makes it one of the average sized ETFs in the World ETFs. WWJD seeks to match the performance of the INSPIRE GLOBAL HOPE EX-US INDEX before fees and expenses.
The Inspire Global Hope ex-US Index selects foreign and domestic equity securities from all publicly traded international and emerging market large cap companies that is designed to assign a score to a particular security based on the alignment with biblical values and the positive impact that company has on the world through various environmental, social and governance criterion.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for WWJD are 0.80%, which makes it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Inpexcorp accounts for about 0.62% of the fund's total assets, followed by Deltaelec-Nvdr (DELTA-R) and Vonoviase (VNA).
Its top 10 holdings account for approximately 5.91% of WWJD's total assets under management.
Performance and Risk
The ETF has gained about 4.57% so far this year and was up about 12.54% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $24.35 and $28.97.
WWJD has a beta of 1.02 and standard deviation of 17.87% for the trailing three-year period. With about 219 holdings, it effectively diversifies company-specific risk.
Alternatives
Inspire International ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.92 billion in assets, iShares ESG Aware MSCI USA ETF has $12.09 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Inspire International ETF (WWJD) a Strong ETF Right Now?
The Inspire International ETF (WWJD - Free Report) was launched on 09/30/2019, and is a smart beta exchange traded fund designed to offer broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
WWJD is managed by Inspire, and this fund has amassed over $206.61 million, which makes it one of the average sized ETFs in the World ETFs. WWJD seeks to match the performance of the INSPIRE GLOBAL HOPE EX-US INDEX before fees and expenses.
The Inspire Global Hope ex-US Index selects foreign and domestic equity securities from all publicly traded international and emerging market large cap companies that is designed to assign a score to a particular security based on the alignment with biblical values and the positive impact that company has on the world through various environmental, social and governance criterion.
Cost & Other Expenses
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Annual operating expenses for WWJD are 0.80%, which makes it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.37%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Inpexcorp accounts for about 0.62% of the fund's total assets, followed by Deltaelec-Nvdr (DELTA-R) and Vonoviase (VNA).
Its top 10 holdings account for approximately 5.91% of WWJD's total assets under management.
Performance and Risk
The ETF has gained about 4.57% so far this year and was up about 12.54% in the last one year (as of 11/07/2023). In the past 52-week period, it has traded between $24.35 and $28.97.
WWJD has a beta of 1.02 and standard deviation of 17.87% for the trailing three-year period. With about 219 holdings, it effectively diversifies company-specific risk.
Alternatives
Inspire International ETF is not a suitable option for investors seeking to outperform the World ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
IShares ESG Aware MSCI EAFE ETF (ESGD - Free Report) tracks MSCI EAFE ESG Focus Index and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. IShares ESG Aware MSCI EAFE ETF has $6.92 billion in assets, iShares ESG Aware MSCI USA ETF has $12.09 billion. ESGD has an expense ratio of 0.20% and ESGU charges 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the World ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.