If You Invested in Inspire 500 ETF (PTL)

Inspire 500 ETF (NYSE: PTL) is a faith-based, low-cost core U.S. equity exchange-traded fund. According to Inspire Investing, the adviser to the fund, PTL seeks to track the performance of the Inspire 500 Index, which is composed of the 500 largest U.S. companies that have a positive Inspire Impact Score. The Inspire Impact Score is a proprietary scoring methodology developed by Inspire Investing to assess alignment with biblical values as part of a biblically responsible investing (BRI) approach.

The Inspire 500 ETF is described as a core equity strategy that provides diversified exposure to the U.S. large-cap equity market while applying faith-based screening and impact criteria. The fund is positioned for investors who want their equity exposure to reflect Christian values as interpreted by Inspire Investing’s screening and scoring framework.

Faith-Based Screening and Inspire Impact Score

Inspire Investing states that the Inspire Impact Score combines exclusionary screening with positive impact factors, aligned with its biblically responsible investing framework. The indexes used by Inspire Funds, including the Inspire 500 Index, rely on software that analyzes publicly available data about a company’s primary business activities, products and services, philanthropy, legal activities, policies, and practices when assigning Inspire Impact Scores.

Only companies with a positive Inspire Impact Score are included in the Inspire 500 Index. This means PTL’s portfolio is designed to reflect this faith-based methodology rather than a traditional market-capitalization index that does not apply such screening.

Cost Structure and Core Equity Role

The Inspire 500 ETF is described as a low-cost option among faith-based ETFs. Inspire Investing reports that PTL has a 0.09% expense ratio and characterizes it as the lowest-cost faith-based ETF available as of a stated date. This cost profile is intended to support its role as a core U.S. equity holding for investors who want broad large-cap exposure with biblically aligned screening.

Because PTL seeks to track an index rather than rely solely on discretionary active management, it is subject to index-tracking considerations. Inspire notes that, as the fund may not fully replicate the index, there is a risk that the investment management strategy may not produce the intended results, and there is no guarantee the fund will achieve its objective, generate positive returns, or avoid losses.

Relationship with Inspire Investing

Inspire Investing, LLC serves as the investment adviser to the Inspire 500 ETF and also provides the index for the Inspire Funds to track. Inspire receives management fees from the ETFs it advises, which the firm identifies as a potential conflict of interest. Inspire states that it seeks to mitigate this conflict through policies and procedures intended to ensure that recommendations are made in clients’ best interests and aligned with their goals and risk profiles.

Inspire Investing describes itself as the world’s largest provider of faith-based ETFs as of a specified date and as the creator of the Inspire Impact Score. The firm’s biblically responsible investing philosophy is faith-based and may not align with the beliefs or investment objectives of all investors. Inspire emphasizes that the Inspire Impact Score is not a performance metric and should not be interpreted as a predictor of future investment returns or suitability.

Charitable Giving and the Give50 Program

Inspire Investing states that it donates 50% or more of its net corporate profits from management fees to support ministry projects through its Give50 Program. The ministries mentioned as supported through this program include Lifewise Academy, PreBorn!, World Help, and International Justice Mission (IJM). Inspire clarifies that charitable giving is conducted through its business operations and partnerships, is not tied to specific investment results, and is not tax-deductible for investors. Investors are not guaranteed a charitable impact from participating in Inspire’s products or services.

Risk Considerations and Disclosures

Inspire Investing emphasizes that investing in PTL involves risk, including the potential loss of principal. Past performance is not indicative of future results, and there is no assurance that any investment strategy, including PTL’s approach of tracking the Inspire 500 Index with faith-based screening, will achieve its objectives or avoid losses. Information and data referenced by Inspire may be obtained from third-party sources, and Inspire notes that it makes no representation as to their accuracy or completeness.

Advisory services related to PTL are offered through Inspire Investing, LLC, a Registered Investment Adviser with the SEC. The firm highlights that materials describing PTL are provided for educational and informational purposes and should not be considered personalized investment, legal, tax, or accounting advice. Prospective investors are directed in the disclosures to review the fund’s prospectus for detailed information on investment objectives, risks, charges, and expenses before investing.

Positioning Within Faith-Based Investing

Within the broader context of biblically responsible investing, the Inspire 500 ETF is positioned as a core U.S. large-cap equity fund that applies Inspire’s proprietary faith-based screening and scoring methodology. It is intended for investors seeking a combination of large-cap equity exposure and alignment with the Christian values framework articulated by Inspire Investing.