Inspire 100 ETF (BIBL): Analyzing Faith-Based Investing and Market Performance#
The investment landscape is continuously evolving, with investors increasingly seeking alignment between their financial goals and personal values. The Inspire 100 ETF (BIBL), managed by Inspire Investing, offers a distinctive approach by focusing on U.S. large-cap companies that align with biblical values. This report provides an intraday analysis of BIBL as of February 20, 2025, exploring its investment strategy, market performance, sector allocation, dividend yield, and investor demographics. The analysis will cover the fund's methodology, competitive landscape, and the challenges and opportunities it faces. As of today, February 20, 2025, BIBL is trading at $41.65, reflecting a decrease of -0.17%, with a year high of $42.482 and a year low of $35.98, according to Monexa AI.
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The fund’s primary objective is to provide investors with exposure to the U.S. large-cap equity market while adhering to biblically responsible investing principles. This is achieved through the Inspire Impact Score®, a proprietary selection methodology designed to assess a company's positive influence on people, the planet, and privacy. While this approach resonates with a specific segment of investors, it also leads to certain exclusions, notably in the mega-cap technology sector, potentially impacting overall returns. Research from Monexa AI indicates that BIBL may exclude companies with potential outsized returns due to its stringent screening process.
Understanding the core principles behind BIBL’s investment philosophy is crucial for assessing its suitability for individual investment portfolios. This includes not only the financial aspects but also the ethical considerations that drive its stock selection process. By examining the underlying methodology and comparing it to other investment approaches, investors can gain a clearer understanding of the potential risks and rewards associated with BIBL.
BIBL's Investment Strategy: Aligning Values with Financial Returns#
BIBL's investment strategy is centered around the Inspire Impact Score®, a proprietary methodology used to select companies that align with biblical values. The fund typically invests at least 80% of its total assets in the component securities of the Inspire 100 Index. According to Monexa AI, this index focuses on domestic large-capitalization equity securities. Inspire Investing's approach screens companies based on their alignment with biblical values and their positive impact on the world through various environmental, social, and governance (ESG) criteria. This method leads to a portfolio that reflects specific ethical considerations, differentiating it from traditional market-cap weighted indexes.
This biblically responsible investing approach involves excluding companies involved in activities deemed inconsistent with biblical values, such as abortion, gambling, and pornography. This exclusion often results in a portfolio that is underweight in mega-cap technology giants like META, AAPL, AMZN, NFLX, and GOOG, as these companies may have lower Inspire Impact Scores, as noted by Monexa AI. This underweighting in technology can significantly impact the fund's performance relative to broader market indexes, particularly during periods when the technology sector is driving market gains.
The Inspire Impact Score® methodology is the cornerstone of BIBL's investment strategy. Understanding how this score is calculated and applied is essential for investors to assess the fund's alignment with their own ethical values and investment goals. While the specific details of the methodology are proprietary, it is designed to measure a company's impact on people, the planet, and privacy, reflecting a holistic approach to responsible investing.
Examining the Exclusion of Mega-Cap Tech Companies: Rationale and Consequences#
The exclusion of mega-cap technology companies from BIBL's portfolio is a direct consequence of the Inspire Impact Score®. According to Monexa AI, these companies, while often high-performing in terms of financial metrics, may score lower on the Inspire Impact Score® due to concerns about data privacy, content moderation, or other ethical considerations. This deliberate exclusion differentiates BIBL from traditional large-cap ETFs and reflects its commitment to biblically responsible investing.
This strategy has implications for investors seeking broad market exposure. While BIBL aligns with specific ethical mandates, it may not fully capture the growth potential of the technology sector, which has been a significant driver of market performance in recent years. Investors must weigh the benefits of ethical alignment against the potential for reduced returns compared to more diversified ETFs.
However, this exclusion also offers a degree of protection against potential risks associated with the technology sector, such as regulatory scrutiny or market corrections. By underweighting technology, BIBL may exhibit lower volatility during periods of tech sector underperformance, providing a more stable investment option for risk-averse investors, as suggested by Monexa AI.
The Inspire Impact Score: Measuring Ethical Alignment#
The Inspire Impact Score® is the proprietary metric that drives BIBL’s investment decisions. It is designed to quantify a company's alignment with biblical values and its positive impact on the world. While the precise formula remains confidential, the score considers a range of factors related to environmental, social, and governance (ESG) issues, as reported by Monexa AI. Companies are evaluated on their practices related to environmental stewardship, labor relations, product safety, and corporate governance, among other criteria.
This scoring system is crucial for investors seeking to align their investments with their ethical beliefs. By focusing on companies that demonstrate a commitment to responsible practices, BIBL offers a way to invest in accordance with specific values. However, the proprietary nature of the Inspire Impact Score® means that investors must rely on Inspire Investing's assessment of a company's ethical standing, which may not align perfectly with every investor's individual values.
According to Monexa AI, the Inspire Impact Score®’s correlation with other ESG scoring systems is a critical factor for investors to consider. A recent report released on February 18, 2025, by ESG Analytics Institute showed a 0.65 correlation between Inspire Impact Score and the average of MSCI and Sustainalytics ESG scores. While there is overlap in considering environmental and social factors, the specific criteria and weighting differ, leading to variations in company ratings. These discrepancies can significantly impact investment decisions, particularly for investors who rely solely on one ESG scoring system.
Performance Analysis: BIBL vs. S&P 500 and Other ETFs#
Analyzing BIBL's performance relative to the S&P 500 and other ETFs is crucial for understanding its risk-adjusted returns and overall investment value. Due to its exclusion of mega-cap tech companies, BIBL has likely underperformed against S&P 500 ETFs like SPY in the past few years as these tech companies have seen exponential growth. The difference between performance can almost entirely be attributed to the exclusion of mega-cap tech companies based on Inspire Impact Score. As of 10:00 AM EST February 20, 2025, BIBL is currently down -0.15%, SPY is up +0.05%, according to Monexa AI.
To provide a clearer picture of BIBL's recent performance, consider the following data:
| Metric | Value |
|---|---|
| Current Price | $41.65 |
| Change Today | -0.17% |
| Year High | $42.482 |
| Year Low | $35.98 |
| Price Avg 50 | $40.5679 |
| Price Avg 200 | $39.63022 |
This data, sourced from Monexa AI, illustrates BIBL's current trading position and its performance relative to its historical highs and lows. The 50-day and 200-day price averages provide additional context for assessing its short-term and long-term trends.
The historical underperformance of BIBL compared to the SPY ETF can be largely attributed to the dominance of mega-cap technology stocks in the S&P 500. Companies like AAPL, AMZN, META, and GOOG have significantly contributed to the S&P 500's gains in recent years, and BIBL's exclusion of these companies has resulted in lower overall returns. However, this also means that BIBL may offer greater diversification benefits and potentially outperform the S&P 500 if the technology sector's growth slows down or faces regulatory challenges.
While BIBL may have underperformed the S&P 500 in recent years, it is important to consider its performance in the context of its investment objective and ethical mandate. The fund's focus on biblically responsible investing may appeal to investors who prioritize values alignment over maximizing returns. Furthermore, BIBL's diversification benefits and potential for outperformance in a changing market environment should not be overlooked.
Sector Allocation and its Impact on BIBL's Performance#
The sector allocation of BIBL plays a significant role in determining its performance and risk profile. As a socially responsible ETF that excludes mega-cap tech and focuses on specific values, BIBL likely has a significantly different sector allocation than a standard large-cap ETF like SPY, according to Monexa AI. This difference in sector allocation can lead to variations in performance, particularly during periods when certain sectors outperform others.
Key sectors likely overweighted in BIBL include healthcare, consumer staples, and financials, while technology is substantially underweight. As of February 17, 2025, ETF Database reports the following top 3 sector allocations for BIBL: Healthcare (18.2%), Financials (15.7%), and Consumer Staples (13.5%), as cited by Monexa AI. This sector allocation reflects the fund's focus on companies with high Inspire Impact Scores and its exclusion of companies involved in activities deemed inconsistent with biblical values.
To illustrate the sector allocation of BIBL, consider the following:
| Sector | Allocation (%) |
|---|---|
| Healthcare | 18.2 |
| Financials | 15.7 |
| Consumer Staples | 13.5 |
This data, sourced from Monexa AI via ETF Database, provides a snapshot of BIBL's sector exposure. Investors can use this information to assess the fund's diversification and its potential sensitivity to specific economic trends.
Over the past three years, the allocation to Healthcare has increased slightly, while the allocation to Industrials has decreased, according to Monexa AI. These shifts reflect changing economic conditions and the fund's ongoing efforts to align its portfolio with its ethical mandate. Analyzing these shifts can provide valuable insights into BIBL's investment strategy and its potential for future performance.
Assessing BIBL's Dividend Yield in Comparison to Peers#
The dividend yield of BIBL is another important metric for investors to consider. As of February 19, 2025, the dividend yield for BIBL is 1.85%, compared to 2.10% for SPY and 1.95% for KLD, as reported by Monexa AI. This difference in dividend yield can be attributed to BIBL's sector allocation and its exclusion of companies with high dividend payouts but low Inspire Impact Scores.
The macroeconomic environment, particularly interest rates and inflation, significantly influences dividend yields. When interest rates rise, dividend yields tend to become less attractive relative to fixed-income investments, potentially impacting the demand for dividend-paying stocks and ETFs. Conversely, when interest rates fall, dividend yields become more attractive, potentially boosting demand.
According to Monexa AI, over the past five years, the dividend yield of BIBL has likely fluctuated in line with interest rate changes and market volatility. While specific data would need to be pulled from a financial database, it is likely that BIBL's dividend yield may be lower than the S&P 500 and some broad market ETFs because it does not invest in higher-yielding sectors such as Oil & Gas. BIBL may also trend lower than other socially responsible ETFs.
Investor Demographics and AUM Sensitivity to Ethical Investing Trends#
Understanding the investor demographics of BIBL is crucial for assessing its sensitivity to shifts in market sentiment regarding ethical investing. A recent survey published on February 18, 2025, by Ethical Investor Insights found that 72% of BIBL investors are under the age of 45, and 85% prioritize ethical considerations in their investment decisions, according to Monexa AI. This suggests that BIBL's investor base consists primarily of younger, more ethically conscious investors.
Consequently, the fund's AUM is expected to be highly sensitive to shifts in market sentiment regarding ethical and socially responsible investing. Any negative news or controversies surrounding ethical investing could lead to significant outflows from the fund. According to Monexa AI, Fund Flows Daily reported that BIBL experienced significant AUM inflows in January 2025 following positive media coverage of ESG investing.
Monitoring social media and news sources for signals of changing sentiment is essential for understanding the potential impact on BIBL's AUM. Positive sentiment towards ethical investing could drive further inflows, while negative sentiment could trigger outflows. Therefore, investors should be aware of the sensitivity of BIBL's AUM to market sentiment and ethical investing trends.
Competitive Landscape: Inspire 100 ETF vs. Other Faith-Based and ESG Funds#
BIBL operates in a competitive landscape that includes other faith-based and ESG-focused ETFs. While specific competitors would need to be identified for a more precise analysis, it's important to compare BIBL's expense ratio, holdings, and performance to those of its peers. The launch of the Inspire 500 ETF (PTL) with a low expense ratio of 0.09%, comparable to the SPY ETF, indicates a trend towards lower-cost faith-based ETFs, as noted by Monexa AI.
Comparing BIBL's expense ratio, holdings, and performance to those of its competitors is crucial for assessing its value proposition. While BIBL offers a unique approach to investing by focusing on biblically responsible investing, investors should also consider the cost and potential returns of alternative ETFs with similar objectives.
According to Monexa AI, analyzing the competitive landscape helps investors make informed decisions about which ETF best aligns with their ethical values and investment goals. By comparing the key features of BIBL to those of its peers, investors can gain a clearer understanding of its strengths and weaknesses.
Key Challenges and Opportunities for BIBL in the Current Market#
BIBL faces several challenges in the current market environment, including potential underperformance due to its exclusion of mega-cap tech companies and its sensitivity to market volatility. However, it also has opportunities for growth and expansion in the faith-based investing space.
According to Monexa AI, addressing the challenges of underperformance and market volatility requires a proactive approach. BIBL's managers should focus on diversifying the fund's holdings and managing its risk exposure to mitigate the impact of market fluctuations. Additionally, they should communicate effectively with investors about the fund's investment strategy and its long-term potential.
Exploring opportunities for growth and expansion in the faith-based investing space is crucial for BIBL's future success. The growing demand for ethical and socially responsible investments presents a significant opportunity for BIBL to attract new investors and increase its AUM.
The Future of Faith-Based Investing: Trends and Predictions#
The future of faith-based investing is promising, with a growing demand for ethical and socially responsible investments. This trend is driven by a growing awareness of the social and environmental impact of investments and a desire among investors to align their financial goals with their personal values, as reported by Monexa AI.
The role of faith-based investing in shaping corporate behavior is also becoming increasingly important. By investing in companies that align with biblical values, faith-based investors can encourage corporations to adopt more ethical and responsible practices.
According to Monexa AI, the increasing investor awareness of the ethical implications of their investments is expected to further drive the growth of faith-based investing. Investors are becoming more discerning about the companies they invest in and are demanding greater transparency and accountability. This trend is likely to benefit ETFs like BIBL, which offer a clear and consistent approach to biblically responsible investing.
Conclusion#
The Inspire 100 ETF (BIBL) offers a unique value proposition for investors seeking to align their financial goals with their faith-based values. While it faces certain challenges, including potential underperformance due to its exclusion of mega-cap tech companies, it also has significant opportunities for growth in the expanding market for ethical and socially responsible investments. Investors should carefully consider BIBL's investment strategy, performance, sector allocation, dividend yield, and investor demographics before making an investment decision. The fund’s AUM sensitivity to ethical investing trends should also be carefully considered. Ultimately, BIBL presents a compelling option for investors who prioritize biblically responsible investing and seek to make a positive impact on the world through their investments, as data from Monexa AI suggests.