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Is Inspire Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
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The Inspire Small/Mid Cap ETF (ISMD - Free Report) was launched on 02/28/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
ISMD is managed by Inspire, and this fund has amassed over $200.29 million, which makes it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, ISMD seeks to match the performance of the Inspire Small/Mid Cap Impact Equal Weight Index.
The Inspire Small/Mid Cap Impact Equal Weight Index tracks the stock performance of 500 of the most inspiring small and mid-cap companies in the U.S.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.59%.
The fund has a 12-month trailing dividend yield of 1.25%.
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.
This ETF has heaviest allocation in the Financials sector - about 21.20% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Bbh Sweep Vehicle (BBHETFMM) accounts for about 0.85% of total assets, followed by Deciphera Pharma and Coeur Mining Inc (CDE - Free Report) .
The top 10 holdings account for about 3.55% of total assets under management.
Performance and Risk
The ETF has added about 7.67% and it's up approximately 12.37% so far this year and in the past one year (as of 07/19/2024), respectively. ISMD has traded between $28.21 and $37.85 during this last 52-week period.
ISMD has a beta of 1.09 and standard deviation of 20.81% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Inspire Small/Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $13.07 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $15.15 billion. ESGU has an expense ratio of 0.15% and JEPQ charges 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
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 Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
The Inspire Small/Mid Cap ETF (ISMD - Free Report) was launched on 02/28/2017, and is a smart beta exchange traded fund designed to offer broad exposure to the Style Box - All Cap Blend 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.
A good option for investors who believe in market efficiency, market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
ISMD is managed by Inspire, and this fund has amassed over $200.29 million, which makes it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, ISMD seeks to match the performance of the Inspire Small/Mid Cap Impact Equal Weight Index.
The Inspire Small/Mid Cap Impact Equal Weight Index tracks the stock performance of 500 of the most inspiring small and mid-cap companies in the U.S.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.59%.
The fund has a 12-month trailing dividend yield of 1.25%.
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.
This ETF has heaviest allocation in the Financials sector - about 21.20% of the portfolio. Industrials and Information Technology round out the top three.
Looking at individual holdings, Bbh Sweep Vehicle (BBHETFMM) accounts for about 0.85% of total assets, followed by Deciphera Pharma and Coeur Mining Inc (CDE - Free Report) .
The top 10 holdings account for about 3.55% of total assets under management.
Performance and Risk
The ETF has added about 7.67% and it's up approximately 12.37% so far this year and in the past one year (as of 07/19/2024), respectively. ISMD has traded between $28.21 and $37.85 during this last 52-week period.
ISMD has a beta of 1.09 and standard deviation of 20.81% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk.
Alternatives
Inspire Small/Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
IShares ESG Aware MSCI USA ETF (ESGU - Free Report) tracks MSCI USA ESG Focus Index and the JPMorgan Nasdaq Equity Premium Income ETF (JEPQ - Free Report) tracks ----------------------------------------. IShares ESG Aware MSCI USA ETF has $13.07 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $15.15 billion. ESGU has an expense ratio of 0.15% and JEPQ charges 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend.
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.