What is the ISMD ETF?
4 min read
By Ron Koren, ETF Insider

What is the ISMD ETF?

ISMD ETF: Overview

The ISMD ETF, or "Inspire Small/Mid Cap Impact ETF," is not your average investment fund. This exchange-traded fund is managed by Inspire Investing, LLC, a company that not only seeks financial returns for its investors but also aims to make a positive impact on the world. The ISMDs underlying principle is to invest in companies that align with biblical values and have a positive impact on their customers, communities, workplace, and the world at large.
Unlike traditional ISMDs that may focus solely on financial metrics, the ISMD ETF employs a proprietary selection methodology called the "Inspire Impact Score®." This score evaluates a company's alignment with specific values and its positive impact in various areas, such as environmental stewardship, social responsibility, and ethical business practices.

ISMD ETF: Ethical Screening Process

The heart of the ISMD ETF's strategy lies in its ethical screening process. The ISMDs index provider, Inspire Investing, evaluates a company's activities and products, eliminating those that do not align with biblical values. This screening process removes companies involved in activities like abortion, alcohol production, gambling, and other practices deemed inconsistent with these values.
Additionally, the ISMDs positive screening process assigns scores to companies based on their actions in areas such as access and affordability, air quality, business ethics, competitive behavior, and more. This ensures that the selected companies not only avoid harmful practices but actively contribute to positive societal outcomes.

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ISMD ETF: Investment Strategy

The ISMD ETF focuses on investing in small and mid-capitalization equity securities of companies with market capitalizations between $1 billion and $3.5 billion. These companies are carefully selected based on their Inspire Impact Scores® and their adherence to biblical values. The ETF's investment strategy encourages companies to prioritize positive impact while also seeking financial success.
This unique approach to investing allows individuals to align their investment portfolios with their personal values and beliefs, contributing to positive change in the world while potentially earning competitive returns.

ISMD ETF: Conclusion

The ISMD ETF offers investors a distinctive opportunity to invest with purpose. By combining financial considerations with ethical and moral values, this ETF provides a way to support companies that strive to make a positive impact on society. It's a prime example of how the world of finance can be harnessed to create meaningful change.
As with any investment decision, it's crucial to conduct thorough research and consider your personal financial goals before investing in the ISMD ETF or any other financial instrument.

Disclaimer: This article is for informational purposes only and does not provide investment advisory services. Always seek professional financial advice before making any investment decisions.
In conclusion, the ISMD ETF offers a thought-provoking perspective on the intersection of finance and values-driven investing. As individuals increasingly seek to align their investments with their beliefs, funds like the ISMD ETF provide a tangible way to contribute to positive change while pursuing financial growth.

ISMD ETF issuer
ISMD ETF official page

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FAQ

  • What is the ISMD ETF?

    ISMD ETF, is an exchange-traded fund that provides investors with exposure to companies operating in the relevant sector.

  • What is the underlying index that the ISMD ETF aims to track?

    ISMD ETF aims to track the performance of a specific index, which includes companies involved in various aspects of the relevant industry.

  • What types of companies are included in the ISMD ETF?

    ISMD ETF includes companies from the relevant industry, which may consist of specialized firms, equipment manufacturers, and other related entities.

  • How does the ISMD ETF work?

    ISMD ETF functions by pooling investors' capital to purchase a diversified portfolio of related stocks, aiming to replicate the performance of the underlying index.

  • What are the advantages of investing in the ISMD ETF?

    Investing in the ISMD ETF offers exposure to a specialized sector with potential for growth and innovation. It allows investors to diversify within the industry, which could experience significant advancements and expansion in the future.