This is a passive bond ETF that selects and invests in corporate bonds issued by companies aligned with biblical values. It screens issuers using its own faith-based value criteria and seeks interest income from investment-grade corporate bonds.

It suits medium- to long-term bond investors who prioritize faith-based value screening while seeking corporate bond income.

It is an ETF managed by Inspire using a passive (index-tracking) approach.

The index excludes companies engaged in businesses that conflict with biblical values and is built from corporate bonds of issuers that meet the fund's own faith-based value criteria. It focuses on investment-grade corporate bonds to pursue interest income, and its distinguishing feature is applying values-based screening to bond investing.

• Applies faith-based value screening to corporate bonds
• Portfolio centered on investment-grade corporate bonds

Assets under management (AUM) stand at $484.2M, and the Expense Ratio is 0.41% per year.

Compared with general investment-grade corporate bond ETFs such as LQD and USIG, the values-based screening criteria are the main point of comparison.

Corporate bond ETFs are driven by the direction of interest rates and credit spreads. Bond prices are typically pressured when rates rise and tend to strengthen when rates fall. Because of its values-based screening structure, the exclusion criteria can make its composition differ from a general corporate bond index.

Fund flows into corporate bonds shift with the interest rate cycle and the credit environment, and when interest in values-based investing rises, money sometimes moves into related product groups. It is also worth noting that performance varies with interest rates and credit conditions.

Values-based screening and investment-grade income are its strengths, while tracking differences from exclusions, interest rate sensitivity, and credit risk are considerations.

For broad investment-grade corporate bond exposure without value criteria, direct substitutes include LQD and USIG, and for broad core bond exposure, products such as AGG and BND are also worth comparing. If you want to focus on intermediate-term corporate bonds, a product like VCIT can be considered as well. The three products shown in the table, LQD, USIG, and USHY, differ in that they invest in investment-grade and high-yield corporate bonds without any values screening. This ETF's distinguishing factor is that it applies faith-based value criteria to corporate bonds.

Here are the points to review before investing in IBD. Values-based screening is the appeal, but tracking difference, interest rate sensitivity, and credit risk should be confirmed in advance. It is also a good idea to compare it with general corporate bond and core bond products.

Tracking differences from the exclusion criteria, rising interest rates, and widening credit spreads are the main variables for short-term performance, and values-based screening can make its composition differ from a general corporate bond index. Even investment-grade bonds can post losses when rates surge.

It is a suitable candidate for medium- to long-term investors who prioritize faith-based value screening while seeking corporate bond income. If you want broad corporate bond exposure without value criteria, consider products such as LQD and USIG, and if you want values-based screening, compare them alongside this product before choosing.