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Is Inspire Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
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A smart beta exchange traded fund, the Inspire Small/Mid Cap ETF (ISMD - Free Report) debuted on 02/28/2017, and offers broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Inspire. It has amassed assets over $224.67 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the Inspire Small/Mid Cap Impact Equal Weight Index.
The Inspire Small/Mid Cap Index selects securities from a universe of publicly traded, domestic small and mid-capitalization equity securities of companies which have an Inspire Impact Score of zero or higher.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.57%.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 17.9% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Information Technology round out the top three.
Looking at individual holdings, Plug Power Inc (PLUG) accounts for about 0.33% of total assets, followed by Fluence Energy I (FLNC) and Redwire Corp (RDW).
ISMD's top 10 holdings account for about 2.53% of its total assets under management.
Performance and Risk
The ETF has added roughly 2.41% and is up roughly 4.23% so far this year and in the past one year (as of 11/03/2025), respectively. ISMD has traded between $29.72 and $40.75 during this last 52-week period.
The fund has a beta of 1.08 and standard deviation of 20.33% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk .
Alternatives
Inspire Small/Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $11.88 billion in assets, iShares ESG Aware MSCI USA ETF has $15.36 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is Inspire Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
A smart beta exchange traded fund, the Inspire Small/Mid Cap ETF (ISMD - Free Report) debuted on 02/28/2017, and offers broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
The fund is sponsored by Inspire. It has amassed assets over $224.67 million, making it one of the average sized ETFs in the Style Box - All Cap Blend. Before fees and expenses, this particular fund seeks to match the performance of the Inspire Small/Mid Cap Impact Equal Weight Index.
The Inspire Small/Mid Cap Index selects securities from a universe of publicly traded, domestic small and mid-capitalization equity securities of companies which have an Inspire Impact Score of zero or higher.
Cost & Other Expenses
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With on par with most peer products in the space, this ETF has annual operating expenses of 0.57%.
It has a 12-month trailing dividend yield of 1.16%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Representing 17.9% of the portfolio, the fund has heaviest allocation to the Industrials sector; Financials and Information Technology round out the top three.
Looking at individual holdings, Plug Power Inc (PLUG) accounts for about 0.33% of total assets, followed by Fluence Energy I (FLNC) and Redwire Corp (RDW).
ISMD's top 10 holdings account for about 2.53% of its total assets under management.
Performance and Risk
The ETF has added roughly 2.41% and is up roughly 4.23% so far this year and in the past one year (as of 11/03/2025), respectively. ISMD has traded between $29.72 and $40.75 during this last 52-week period.
The fund has a beta of 1.08 and standard deviation of 20.33% for the trailing three-year period. With about 503 holdings, it effectively diversifies company-specific risk .
Alternatives
Inspire Small/Mid Cap ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Blend segment of the market. However, there are other ETFs in the space which investors could consider.
Vanguard ESG U.S. Stock ETF (ESGV) tracks FTSE US ALL CAP CHOICE INDEX and the iShares ESG Aware MSCI USA ETF (ESGU) tracks MSCI USA ESG Focus Index. Vanguard ESG U.S. Stock ETF has $11.88 billion in assets, iShares ESG Aware MSCI USA ETF has $15.36 billion. ESGV has an expense ratio of 0.09% and ESGU changes 0.15%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Blend
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.