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 The share price adjusts because the distribution is withdrawn from the fund’s assets, which decreases the net asset value (NAV).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.
Important Risk Information
The Fund invests its assets in securities with an Inspire Impact Score® of zero or higher. As a result of its strategy, the Fund's exclusion of securities of certain issuers for nonfinancial reasons may cause the Fund to forgo some market opportunities available to funds that do not use these criteria. The value of investments in larger companies may not rise as much as smaller companies, or larger companies may be unable to respond quickly to competitive challenges, such as changes in technology and consumer tastes.
Investors cannot invest directly in an index and unmanaged index returns do not reflect any fees, expenses or sales charges.
Distributions are not guaranteed and will vary from year to year depending on market conditions, portfolio turnover, and other factors. Distributions may be subject to federal and state taxes and will be reported on Form 1099-DIV. Please consult your tax advisor about your specific situation.
On the ex-dividend date, a fund’s share price is reduced by the amount of the distribution. Total return is not impacted by this adjustment.
If you are enrolled in a dividend reinvestment program through your broker, distributions will be reinvested automatically; otherwise, they will be paid in cash.
