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Is Inspire International ETF (WWJD) a Strong ETF Right Now?
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Designed to provide broad exposure to the World ETFs category of the market, the Inspire International ETF (WWJD - Free Report) is a smart beta exchange traded fund launched on 09/30/2019.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
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
WWJD is managed by Inspire, and this fund has amassed over $300.94 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.73%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.47%.
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, Delta Elec-Nvdr (DELTA-R) accounts for about 0.61% of the fund's total assets, followed by Gulf Energy De-R (GULF-R) and Sgs Sa-Reg (BMBQHZ4).
Its top 10 holdings account for approximately 5.84% of WWJD's total assets under management.
Performance and Risk
Year-to-date, the Inspire International ETF has added roughly 7.28% so far, and is up about 18.32% over the last 12 months (as of 09/16/2024). WWJD has traded between $25.16 and $31.49 in this past 52-week period.
WWJD has a beta of 1 and standard deviation of 17.15% for the trailing three-year period. With about 216 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 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 $13.05 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $16.01 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 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?
Designed to provide broad exposure to the World ETFs category of the market, the Inspire International ETF (WWJD - Free Report) is a smart beta exchange traded fund launched on 09/30/2019.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
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.
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
WWJD is managed by Inspire, and this fund has amassed over $300.94 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
Annual operating expenses for this ETF are 0.73%, making it on par with most peer products in the space.
It's 12-month trailing dividend yield comes in at 2.47%.
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, Delta Elec-Nvdr (DELTA-R) accounts for about 0.61% of the fund's total assets, followed by Gulf Energy De-R (GULF-R) and Sgs Sa-Reg (BMBQHZ4).
Its top 10 holdings account for approximately 5.84% of WWJD's total assets under management.
Performance and Risk
Year-to-date, the Inspire International ETF has added roughly 7.28% so far, and is up about 18.32% over the last 12 months (as of 09/16/2024). WWJD has traded between $25.16 and $31.49 in this past 52-week period.
WWJD has a beta of 1 and standard deviation of 17.15% for the trailing three-year period. With about 216 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 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 $13.05 billion in assets, JPMorgan Nasdaq Equity Premium Income ETF has $16.01 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 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.