Inspire debuts low-cost biblically responsible US equity ETF

Mar 27th, 2024 | By | Category: Equities

Inspire Investing has introduced a new core US equity ETF with security selection determined by alignment with Christian values.

Inspire debuts low-cost biblically responsible US equity ETF

The fund represents the most cost-effective ETF designed specifically for faith-based investors.

The Inspire 500 ETF (PTL US) has been listed on NYSE Arca with an expense ratio of 0.09%, making it the lowest-cost ETF tailored for faith-based investors.

Robert Netzly, CEO of Inspire Investing, said: “PTL opens up a whole new world of low-cost, index-based investing for faith-based investors. Inspire has been pushing costs lower for faith-based ETF investors since 2017, and now with our scale and growth, we are thrilled to stand toe-to-toe against the biggest ETFs in the world on cost.”

The fund is linked to the proprietary Inspire 500 Index which consists of the largest 500 US-listed and domiciled companies that exhibit positive biblical values as determined by an ‘Inspire Impact Score’ greater than or equal to zero.

The Inspire Impact Score is an objective, rules-based methodology that analyses publicly available data relating to a company’s primary business activities, products and services, philanthropy, legal activities, policies, and practices to determine how well the company adheres to Christian principles.

The process seeks out firms doing amazing things like working to cure cancer, providing clean water solutions, and otherwise being a blessing to their communities, customers, workforce, and the world. At the same time, it also seeks to avoid companies involved in activities like weapons, abortion, pornography, contraceptives, and human trafficking.

Chosen constituents are weighted by float-adjusted market capitalization, and the index is reconstituted and rebalanced annually with buffer rules helping to limit unnecessary turnover.

Interestingly, the resulting portfolio has no exposure to any companies within the “Magnificent 7”, leading to a significantly different profile compared to traditional US large-cap equity benchmarks. Instead, the ETF’s most notable positions are Broadcom (4.8%), Exxon Mobil (3.5%), Home Depot (3.0%), Linde (1.8%), and Qualcomm (1.5%).

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