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

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.

What Are Smart Beta ETFs?

Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.

Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.

There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track 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

Managed by Inspire, WWJD has amassed assets over $254.60 million, making it one of the larger ETFs in the World ETFs. This particular fund 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

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

Operating expenses on an annual basis are 0.80% for this ETF, which makes it one of the more expensive products in the space.

It has a 12-month trailing dividend yield of 2.51%.

Sector Exposure and Top Holdings

While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

Looking at individual holdings, Bankpekaosa (PEO) accounts for about 0.76% of total assets, followed by Powszechnakasaoszczedno (PKO) and Rweag (RWE).

Its top 10 holdings account for approximately 6.22% of WWJD's total assets under management.

Performance and Risk

The ETF has added roughly 2.03% so far this year and was up about 15.64% in the last one year (as of 03/13/2024). In the past 52-week period, it has traded between $25.16 and $30.13.

The ETF has a beta of 1.02 and standard deviation of 17.30% for the trailing three-year period. With about 224 holdings, it effectively diversifies company-specific risk.

Alternatives

Inspire International ETF is a reasonable option for investors seeking to outperform the World ETFs segment of the market. However, there are other ETFs in the space which investors could consider.

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) tracks ---------------------------------------- and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. JPMorgan Nasdaq Equity Premium Income ETF has $11.11 billion in assets, iShares ESG Aware MSCI USA ETF has $13.73 billion. JEPQ has an expense ratio of 0.35% and ESGU charges 0.15%.

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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Inspire International ETF (WWJD): ETF Research Reports

Adams Natural Resources Fund, Inc. (PEO): ETF Research Reports

iShares ESG Aware MSCI USA ETF (ESGU): ETF Research Reports

JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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