Special Note: Inspire has removed the term ESG (environmental, social, governance) from the names of its ETF suite. Read more.
December 21, 2021
Daniel Mastrolonardo

ETF Notice: Price Adjustments Due To Tax Distributions

Share prices were adjusted downward on several Inspire ETFs due to market appreciation and portfolio turnover that resulted from enhancing the Inspire Impact Scoring methodology, resulting in higher quality constituents with more precise biblical alignment for investors.

On 12/14/2021 share prices were adjusted downward on several Inspire ETFs. December 14th was the funds’ ex-dividend date and this drop is expected to happen during the normal course of the annual tax distributions of a fund. Please be advised that investors did not lose any money and their total return was unaffected by this distribution. The share price adjusts because the distribution is withdrawn from the fund’s assets, which decreases the net asset value (NAV). The money that was distributed will reflect in investor accounts on Monday, 12/20/2021. If investors have been set up for automatic reinvestment in their accounts, the distribution will be reinvested back into the same investment vehicle that the distribution came out of.

This year’s distributions were larger than previous years in some of the funds. The leading factors driving this were large capital gains due to market appreciation and portfolio turnover that resulted from the reconstitution of the indexes tracked by their respective funds.

The turnover in index constituents was primarily the result of enhancing the Inspire Impact Scoring methodology, which we believe results in higher quality constituents with more precise biblical alignment for investors.

This higher-than-usual turnover is atypical due to this one-time adjustment and not representative of an average year.

These changes have all been in alignment with Inspire’s mission to invest in the most inspiring and biblically aligned companies in the world. While the methodology enhancements resulted in higher-than-normal capital gains and turnover this year, it also means investors are participating in the ownership of companies with greater biblical alignment to glorify God with their investments.

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There is no guarantee that the Funds will achieve their objective, generate positive returns, or avoid losses. Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 877.658.9473, or visit www.inspireetf.com. Read it carefully. The Inspire ETFs are distributed by Foreside Financial Services LLC., Member FINRA. 

Inspire and Foreside Financial Services LLC are not affiliated. 

ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund’s shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern time (the “NAV Calculation Time”). Shares are bought and sold at market price (closing price) not NAV. Market Price returns are based upon the official closing price on the listing exchange (NYSE ARCA) at 4:00 p.m. ET when NAV is normally determined for most Inspire Funds, and do not represent the returns you would receive if you traded shares at other times.

An active secondary market for the Fund’s shares may not exist. Although the Fund’s shares will be listed on an exchange, subject to notice of issuance, it is possible that an active trading market may not develop or be maintained. There is no guarantee that distributions will be paid. 

Investment advisory services offered through Inspire Investing, LLC, a Registered Investment Advisor with the SEC. 

National Admin Office: 3597 E Monarch Sky Ln, Suite 330 Meridian, ID 83646; Phone: (877)658-9473; Email: admin@inspireinvesting.com 

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