Understanding the INSPIRE CAPITAL APPRECIATION ETF (RISN)

The INSPIRE CAPITAL APPRECIATION ETF (ticker: RISN) is an exchange-traded fund listed on the NYSE. This ETF is designed to focus on capital appreciation, which generally means it seeks growth in value over time.

What this ETF is trying to do

RISN holds a variety of different investments. Based on its top holdings, the fund includes a mix of short-term U.S. Treasuries and various individual companies. Its top holdings include:

• SCHWAB SHORT-TERM US TREASURY ETF: 18.44%

• FORTINET INC: 5.87%

• SIRIUS XM HOLDINGS INC: 3.74%

• QUALYS INC: 3.61%

• MANHATTAN ASSOCIATES INC: 3.51%

• OLD DOMINION FREIGHT LINE INC: 3.50%

• LANDSTAR SYSTEM INC: 3.43%

• TEXAS PACIFIC LAND CORP: 3.42%

• EXPEDITORS INTERNATIONAL OF WASHINGTON INC: 3.41%

• SUPER MICRO COMPUTER INC: 3.31%

Please note that this list is a partial view of the fund's holdings, which can change over time.

What the numbers show

When looking at how RISN has performed, it is important to distinguish between price return (the change in the share price) and total return (which includes the value of distributions).

• Year-to-Date (YTD): The price return is approximately 5.10%, while the total return is approximately 5.99%.

• One-Year: The price return was approximately 5.08%, and the total return was approximately 6.23%.

• Three-Year: The price return was approximately 33.95%, and the total return was approximately 39.02%.

An estimated price from roughly one year ago was $29.05, compared to the current price of $30.52.

Income and distribution explanation

RISN provides cash distributions to investors. The current distribution yield is 1.06%. This means the fund paid out $0.32 per share over the trailing period. These payments usually happen on a quarterly basis, and in the last 12 months, there were 4 payments.

It is important to remember that a distribution yield tells you how much cash was paid out relative to the price, but it is not the same as your total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, regarding price movement, the fund has an erosion-risk score of 100, which is labeled as "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Positive Returns: The fund has shown positive price returns and total returns over the one-year and three-year periods.

• Low Erosion Risk: The current measurements show no detected price erosion.

Cons

• Lower Yield: Compared to some other types of income-focused funds, the 1.06% distribution yield is relatively low.

Beginner takeaway

RISN appears to focus on growth, as shown by its positive total returns over the last three years. While it does pay a quarterly distribution, the primary movement comes from changes in the share price. Always remember that past performance does not guarantee what will happen in the future.