Inspire Debuts Multi-Factor Biblical ETF: FDLS | ETF Trends

Inspire Investing, a biblically responsible investing firm, has launched the Inspire Fidelis Multi-Factor ETF (FDLS)

FDLS, listed on the NYSE on August 24 with a 85 basis point expense ratio, is Inspire’s ninth fund launch, building on the success of its previous biblical ETFs and continuing its aggressive effort to advance the biblically responsible investing (BRI) movement, the firm said in a statement.

The new fund is a faith-based ETF comprising 100 high-quality, biblically aligned companies seeking growth and momentum purchased at a reasonable price. FDLS utilizes the Inspire Impact Score methodology to seek out some of the most biblically aligned companies in the world, according to the company’s standards, applying a faith-based perspective in seeking out businesses that are “a blessing” to their customers, communities, workforces, and the world, according to a statement from the firm.

“By the grace of God, even in this tumultuous market, we have continued to see an increase in demand for faith-based investments. Today, we are excited to expand our product menu again and bring the Fidelis strategy from Wallick Investments to the masses through an ETF. This launch provides a new option for investors and advisors looking to incorporate factor investing into their biblically aligned portfolios,Inspire CEO Robert Netzly said in a statement.

FDLS seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Fidelis Multi-Cap Multi-Factor Index. 

The Fidelis Multi-Cap Multi-Factor Index methodology utilizes a factor-based scoring methodology that ranks companies based on quality, value, and momentum characteristics. The securities in the index range from large (minimum 40% allocation) to small- or mid-cap companies with at least $250 million market cap (maximum 60% allocation). Sector and industry rules are in place to ensure continued diversification, according to the statement.

The index scoring methodology includes 16 criteria for quality (including biblical values, profitability, financial health, and growth), seven criteria for momentum (including relative price strength and EPS revisions), and eight criteria for value (including price-to-value ratios, dividends, and volatility). The total criterion for quality, value, and momentum factors are essentially evenly weighted (34%, 33%, and 33%, respectively), according to the statement.

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