We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Inspire Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
Read MoreHide Full Article
The Inspire Small/Mid Cap ETF (ISMD - Free Report) made its debut on 02/28/2017, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $298.78 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. ISMD is managed by Inspire. This particular fund, before fees and expenses, 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.53% for ISMD, making it on par with most peer products in the space.
ISMD's 12-month trailing dividend yield is 0.98%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 19.5% of the portfolio, the fund has heaviest allocation to the Industrials sector; Information Technology and Financials round out the top three.
Taking into account individual holdings, Target Hospitali (TH) accounts for about 0.3% of the fund's total assets, followed by Agilon Health In (AGL) and Avis Budget Grou (CAR).
Its top 10 holdings account for approximately 2.46% of ISMD's total assets under management.
Performance and Risk
The ETF return is roughly 17.63% and was up about 31.74% so far this year and in the past one year (as of 05/15/2026), respectively. ISMD has traded between $33.66 and $45.70 during this last 52-week period.
The fund has a beta of 1.03 and standard deviation of 19.62% for the trailing three-year period. With about 505 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 Shares (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 Shares has $13.04 billion in assets, iShares ESG Aware MSCI USA ETF has $17.26 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.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Is Inspire Small/Mid Cap ETF (ISMD) a Strong ETF Right Now?
The Inspire Small/Mid Cap ETF (ISMD - Free Report) made its debut on 02/28/2017, and is a smart beta exchange traded fund that provides broad exposure to the Style Box - All Cap Blend category of the market.
What Are Smart Beta ETFs?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
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.
While this space offers a number of choices to investors, including simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies, not all these strategies have been able to deliver superior results.
Fund Sponsor & Index
Because the fund has amassed over $298.78 million, this makes it one of the average sized ETFs in the Style Box - All Cap Blend. ISMD is managed by Inspire. This particular fund, before fees and expenses, 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.53% for ISMD, making it on par with most peer products in the space.
ISMD's 12-month trailing dividend yield is 0.98%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Representing 19.5% of the portfolio, the fund has heaviest allocation to the Industrials sector; Information Technology and Financials round out the top three.
Taking into account individual holdings, Target Hospitali (TH) accounts for about 0.3% of the fund's total assets, followed by Agilon Health In (AGL) and Avis Budget Grou (CAR).
Its top 10 holdings account for approximately 2.46% of ISMD's total assets under management.
Performance and Risk
The ETF return is roughly 17.63% and was up about 31.74% so far this year and in the past one year (as of 05/15/2026), respectively. ISMD has traded between $33.66 and $45.70 during this last 52-week period.
The fund has a beta of 1.03 and standard deviation of 19.62% for the trailing three-year period. With about 505 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 Shares (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 Shares has $13.04 billion in assets, iShares ESG Aware MSCI USA ETF has $17.26 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.