The Inspire Fidelis Multi Factor ETF (FDLS) seeks to provide investment returns through a biblically responsible multi-factor approach that screens companies based on environmental, social, and governance criteria aligned with Christian values. This faith-based equity ETF combines multiple investment factors while excluding companies involved in activities deemed inconsistent with biblical principles.
How It Works
FDLS employs an actively managed approach that integrates multiple quantitative factors such as quality, value, and momentum while applying biblical screening criteria to exclude companies involved in abortion, pornography, gambling, tobacco, and other activities. The fund's portfolio managers select securities that meet both financial merit and faith-based standards. Holdings are typically concentrated in 50-100 positions across various sectors, with quarterly rebalancing to maintain factor exposures and screening compliance.
Key Features
- Combines biblical screening with multi-factor investing, offering faith-based investors access to quantitative investment strategies without compromising values
- Attractive 6.13% dividend yield suggests focus on income-generating stocks that pass both financial and faith-based criteria
- Recently launched in 2022 with zero reported expense ratio, though actual fees likely exist but not yet disclosed
Risks
- This ETF can lose value if faith-based screening significantly limits investment universe, potentially excluding high-performing sectors like technology or healthcare companies
- Multi-factor strategies may underperform during periods when growth stocks dominate, as value and quality factors can lag for extended periods
- New fund with limited assets and track record faces potential closure risk if it fails to attract sufficient investor interest
Who Should Own This
Best suited for faith-based investors with 3-5 year time horizons seeking equity exposure aligned with Christian values. Medium to high risk tolerance required due to concentrated holdings and factor-based approach. Works as a satellite holding (10-25% of equity allocation) for investors prioritizing values-based investing over pure performance optimization.