 The
Inspire Corporate Bond Impact ETF (IBD) is an exchange-traded fund
(ETF) that aims to invest in corporate bonds issued by companies that
demonstrate positive environmental, social, and governance (ESG)
characteristics.
As of September 2021, the fund had a net asset
value of approximately $54 million and an expense ratio of 0.61%. The
ETF's holdings are primarily in investment-grade corporate bonds and
the top ten holdings make up approximately 19% of the portfolio.
IBD's investment strategy is based on the Inspire Impact Score,
which is a proprietary scoring system that evaluates companies based
on their positive impact in various areas such as environmental
stewardship, social impact, and corporate governance. The ETF invests
in bonds issued by companies that score highly on this rating system
and exclude companies that do not meet their ESG criteria.
One
potential benefit of IBD is that it allows investors to invest in
bonds of companies that are making a positive impact on society and
the environment while potentially generating returns. However, it's
important to note that like all bond funds, IBD carries some risks,
including interest rate risk, credit risk, and market risk. Changes in
interest rates can affect the value of the fund's holdings, while
credit risk refers to the possibility of issuers defaulting on their
debt obligations. Market risk refers to the risk of the bond market
experiencing volatility, which can impact the value of the ETF.
Investors should carefully consider their investment objectives,
risk tolerance, and consult with a financial professional before
making any investment decisions.
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