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Is Inspire International ETF (WWJD) a Strong ETF Right Now?
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Launched on 09/30/2019, the Inspire International ETF (WWJD - Free Report) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
WWJD is managed by Inspire, and this fund has amassed over $240.12 million, which makes it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the INSPIRE GLOBAL HOPE EX-US INDEX .
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.
Operating expenses on an annual basis are 0.80% for this ETF, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.61%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
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).
The top 10 holdings account for about 5.91% of total assets under management.
Performance and Risk
Year-to-date, the Inspire International ETF has lost about -2.03% so far, and is up about 12.90% over the last 12 months (as of 01/08/2024). WWJD has traded between $25.16 and $29.63 in this past 52-week period.
WWJD has a beta of 1.03 and standard deviation of 17.53% 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.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.34 billion in assets, iShares ESG Aware MSCI USA ETF has $13.19 billion. JEPQ has an expense ratio of 0.35% 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?
Launched on 09/30/2019, the Inspire International ETF (WWJD - Free Report) is a smart beta exchange traded fund offering broad exposure to the World ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option 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.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
WWJD is managed by Inspire, and this fund has amassed over $240.12 million, which makes it one of the larger ETFs in the World ETFs. This particular fund, before fees and expenses, seeks to match the performance of the INSPIRE GLOBAL HOPE EX-US INDEX .
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.
Operating expenses on an annual basis are 0.80% for this ETF, which makes it one of the more expensive products in the space.
It's 12-month trailing dividend yield comes in at 2.61%.
Sector Exposure and Top Holdings
Most ETFs are very transparent products, and disclose their holdings on a daily basis. ETFs also offer diversified exposure, which minimizes single stock risk, though it's still important for investors to research a fund's holdings.
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).
The top 10 holdings account for about 5.91% of total assets under management.
Performance and Risk
Year-to-date, the Inspire International ETF has lost about -2.03% so far, and is up about 12.90% over the last 12 months (as of 01/08/2024). WWJD has traded between $25.16 and $29.63 in this past 52-week period.
WWJD has a beta of 1.03 and standard deviation of 17.53% 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.
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $8.34 billion in assets, iShares ESG Aware MSCI USA ETF has $13.19 billion. JEPQ has an expense ratio of 0.35% 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.