Impact investment firm Inspire Investing has expanded its biblically responsible line-up with the suite’s first actively managed ETF.
Inspire Investing also offers a suite of five index-linked biblically responsible ETFs which collectively house $480m AUM.
The Inspire Tactical Balanced ESG ETF (RISN US) has listed on NYSE Arca and comes with an expense ratio of 0.84%.
The fund is designed to serve as a faith-based core US large-cap holding with a risk-management overlay that shifts into defensive assets when the equity market outlook is unfavourable.
The methodology uses both industry-based exclusionary screens and broad ESG ratings to identify companies which it describes as “operating as businesses of blessing.”
The process excludes any issuer with operations linked to abortion, alcohol, gambling, tobacco, pornography, or human rights violations.
It also removes companies that promote or advocate for LGBT+ communities, placing the ETF at odds with many ESG funds that support such initiatives.
Remaining constituents are assigned an ESG rating based upon Inspire Investing’s Impact Score methodology which filters publicly available data points to identify companies that adhere to the Certified Biblically Responsible Investing (BRI) standards, a benchmark measuring alignment with biblical values.
The process scores companies based on several ESG categories including corporate governance, data security and privacy, environmental stewardship, innovation, labor practices, marketing ethics, political action, renewable energy, social impact, and supply chain.
The equity portfolio will consist of stocks with robust ESG rankings and compelling business fundamentals.
The fund’s managers also use proprietary technical analysis to determine when the broad US large-cap market is expected to turn downward and shifts some or all of the portfolio’s assets into defensive securities such as US Treasuries, investment-grade bonds, or gold. By offering a risk-management overlay, the ETF aims to provide lower volatility over the long-term compared to the US large-cap market.
While this is Inspire Investing’s first actively managed fund, the firm also offers a further five index-linked biblically responsible ETFs which target US large-cap, US mid- & small-cap, global, and global ex-US equity markets as well as US corporate bonds.
Each ETF is driven by the firm’s Impact Score methodology, and collectively the funds house around $480 million in assets under management.
To further boost their ETFs’ faith credentials, Inspire Investing has pledged to donate at least 50% of its corporate profits generated from management fees to support ministry projects around the globe.