The combination of a middling Process Pillar rating and a Low People Pillar rating limit  Inspire International ETF to a Morningstar Medalist Rating of Neutral.  The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The team managing the passive strategy earns a Low People Pillar. The strategy merits an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a considerable underweight position in quality exposure and momentum exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy's parent organization is industry standard, albeit with some strong attributes like a favorable lineup success ratio and overall reasonable fees. This earns the firm an Average Parent Pillar rating.

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Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Inspire International ETF earns an Average Process Pillar rating. The most important driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. A low expense ratio also contributes to the process, with costs ranking in its category's second-cheapest quintile. Expenses reduce net returns and are one of the most reliable predictors of future performance. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 25%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to replicate investment results that generally correspond, before fees and expenses, and to the performance of the Inspire Global Hope ex-US Index.  The fund generally invests at least 80% of its total assets in the component securities of the Inspire Global Hope ex-US Index. The index provider selects foreign (including emerging markets) equity securities from a global universe of publicly traded equity securities of foreign and emerging market companies with a market capitalization of $5 billion (U.S. Dollars) or greater and which have an Inspire Impact Score® of zero or higher. 

 The portfolio is overweight in utilities and financial services relative to the category average by 6.5 and 3.9 percentage points, respectively. The sectors with low exposure compared to category peers are technology and healthcare, underweight the average by 5.5 and 5.4 percentage points of assets, respectively. The portfolio is positioned across 209 holdings and is less top-heavy than peers. Specifically, 6.4% of the fund’s assets are concentrated within the top 10 fund holdings, compared to the typical peer's 15.4%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 37% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Inspire’s team receives a Low People Pillar rating. The most significant detractor from the rating is the turnover of talent across its parent firm. The firm's asset-weighted manager tenure of six years suggests it could do more to retain portfolio managers. Management team experience, which averages six years at this fund, also holds the rating back. The parent firm's five-year success ratio of 25% further holds the rating back. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

People

In a competitive industry, Inspire doesn't differentiate itself enough, leading to an Average Parent Pillar rating. The firm's lasting product shelf is its strength. Its three-year risk-adjusted success ratio of 71% means that 71% of its strategies have both survived and beaten their respective category median on a risk-adjusted basis. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. The firm stands out from a cost perspective for its open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors' returns. On average, the firm's fees on its funds are in the second cheapest quintile of its category. With an average tenure of six years among the longest-tenured managers at Inspire, the firm is on par with peers. Seasoned teams tend to have more experience to draw upon should they need to weather turbulent market conditions.

Parent

Inspire International ETF

WWJD offers exposure to equity in large firms outside the US, screened for biblical values per the index provider and weighted equally.

The Inspire International ETF (WWJD) made its debut on 09/30/2019, and is a smart beta exchange traded fund that provides broad exposure to the World ETFs category of the market.

Is Inspire International ETF (WWJD) a Strong ETF Right Now?

BOISE, Idaho , Oct. 25, 2023 /PRNewswire/ -- After receiving the prestigious 5-Star Morningstar Rating 1 earlier in the year, Inspire's biblically responsible international ETF (NYSE: WWJD) continues to beat the S&P International 700 on its 4-year anniversary. WWJD landed in the top 6 percentile out of 679 funds in Morningstar's Foreign Large Blend category, based on total returns over the last three years (as of September 30, 2023).

Inspire's 5-Star International ETF (NYSE: WWJD) Still Outperforming Benchmark at Four Year Anniversary

Biblically responsible Inspire International ETF [NYSE: WWJD] celebrates landing the prestigious five-star rating from Morningstar. BOISE, Idaho , May 9, 2023 /PRNewswire/ -- The Inspire International ETF [NYSE: WWJD] from biblically responsible investing firm, Inspire Investing, received a 5-Star Morningstar Rating1 on 3-year risk-adjusted returns as of March 31, 2023.

Inspire International ETF [NYSE: WWJD] Lands Morningstar 5-Star Rating

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Inspire Investing has announced fee reductions on seven of its biblically responsible, faith-based ESG ETFs BOISE, Idaho , May 2, 2022 /PRNewswire/ -- Inspire Investing, the world's largest provider of biblically responsible ESG ETFs, reported fee reductions on seven of its eight exchange traded funds. This reduction in fees is due mostly to the rapid growth that Inspire has achieved and covers a broad range of investment solutions, from global and U.S. equity to fixed income, momentum, and tactical strategies.

News for Inspire International ETF ETF (WWJD)