FM Focus Equity ETF (FMCX) ETF Analysis

The fund's expense ratio is 0.70%. The fund's strategy involves concentrated positions, with no single investment generally exceeding 10% of the portfolio at acquisition.

FM Focus Equity ETF (FMCX) ETF — Price, Holdings & Analysis

The FM Focus Equity ETF (FMCX) is an actively managed fund by Inspire, focusing on approximately 25-30 U.S. exchange-traded common stocks. With $0.10 billion in assets under management, FMCX distinguishes itself through a concentrated portfolio and a non-diversified approach. The fund's expense ratio is 0.70%. The fund's strategy involves concentrated positions, with no single investment generally exceeding 10% of the portfolio at acquisition.

ETF Overview

The fund is an actively managed exchange-traded fund (“ETF”) that, during normal market conditions, seeks to invest in approximately 25-30 U.S. exchange-traded common stocks of companies that are listed on U.S. national securities exchanges and trade contemporaneously with the shares of the fund. The fund adviser may also hold concentrated positions in common stocks, although the fund’s guidelines provide that no single investment should generally be more than 10% of the fund’s portfolio at acquisition. The fund is non-diversified.

The FM Focus Equity ETF (FMCX) is an actively managed fund that aims to invest in a focused portfolio of around 25-30 U.S. exchange-traded common stocks. This non-diversified approach allows the fund adviser to hold concentrated positions, potentially leading to higher returns but also increased risk. The fund's top holdings include Microsoft Corp (6.79%), GE Aerospace (5.53%), and KKR & Co Inc Ordinary Shares (5.42%). Sector allocation is heavily weighted towards Technology (31.2%) and Industrials (21.3%), with significant exposure to Consumer Cyclical (15.5%) and Financial Services (13.6%). This concentrated strategy differentiates FMCX from more broadly diversified equity ETFs, making it suitable for investors seeking targeted exposure to specific sectors and companies. The fund's investment decisions are actively managed, relying on the expertise of the fund adviser to select and weight individual stocks. Past performance does not guarantee future results.

Risk Metrics

FMCX carries several risks due to its investment strategy. Being non-diversified, the fund is subject to concentration risk, meaning its performance is heavily reliant on a small number of holdings. The top 10 holdings constitute a significant portion of the portfolio. The fund's sector allocation also presents a risk, with over 31.2% allocated to the Technology sector, making it vulnerable to fluctuations in that industry. With a beta of 1.03, FMCX exhibits slightly higher volatility compared to the broader market. The expense ratio of 0.70% is higher than category averages, which can create an expense drag on returns over time. Investors should carefully consider these risks before investing in FMCX. Past performance does not guarantee future results.

Expense Ratio

0.70%

What does FMCX hold?

Holding	Weight
Microsoft Corp (MSFT)	6.79%
GE Aerospace (GE)	5.53%
KKR & Co Inc Ordinary Shares (KKR)	5.42%
Goldman Sachs FS Government Instl (FGTXX)	5.04%
Berkshire Hathaway Inc Class A (BRK.A)	4.82%
O'Reilly Automotive Inc (ORLY)	4.39%
Danaher Corp (DHR)	4.33%
Broadcom Inc (AVGO)	3.64%
Linde PLC (LIN)	3.64%
Applied Materials Inc (AMAT)	3.53%

How Is the Fund Allocated?

Sector	Weight
Technology	31.2%
Industrials	21.3%
Consumer Cyclical	15.5%
Financial Services	13.6%
Healthcare	9.3%
Communication Services	5.3%
Basic Materials	3.8%
Cash & Others	0.0%

Country	Weight
United States	85.7%
Other	4.9%
United Kingdom	3.6%
Netherlands	3.0%
Switzerland	2.7%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

Brookstone Dividend Stock ETF (BAMD) (Equity) — 0.95% expense ratio
Inspire Global Hope ETF (BLES) (Equity) — 0.56% expense ratio
Brookstone Intermediate Bond ETF (BAMB) (Fixed Income) — 1.04% expense ratio
Inspire 100 ETF (BIBL) (Equity) — 0.41% expense ratio
Brookstone Value Stock ETF (BAMV) (Equity) — 0.95% expense ratio

Risk Metrics

Beta: 1.03

Questions & Answers

What is FMCX and what does it track?

The FM Focus Equity ETF (FMCX) is an actively managed fund by Inspire that invests in approximately 25-30 U.S. exchange-traded common stocks. Unlike passively managed ETFs that track an index, FMCX's investment decisions are actively made by the fund's adviser.

What is the expense ratio for FMCX?

The expense ratio for FMCX is 0.70%. This means that for every $10,000 invested, $70 is used to cover the fund's operating expenses annually.

While this provides for active management, the expense ratio is higher than some passively managed equity ETFs, which can have expense ratios as low as 0.03%.

What are the top holdings in FMCX?

The top holdings in FMCX include Microsoft Corp (MSFT) at 6.79%, GE Aerospace (GE) at 5.53%, KKR & Co Inc Ordinary Shares (KKR) at 5.42%, Goldman Sachs FS Government Instl (FGTXX) at 5.04%, and Berkshire Hathaway Inc Class A (BRK.A)…

at 4.82%. These holdings represent a significant portion of the fund's portfolio, reflecting its concentrated investment strategy.

Is FMCX a good long-term investment?

Whether FMCX is a suitable long-term investment depends on an investor's individual risk tolerance and investment goals. The fund's concentrated strategy and higher expense ratio of 0.70% may not be ideal for all investors.

Its focus on a limited number of holdings can lead to higher volatility compared to more diversified ETFs.

How does FMCX compare to similar ETFs?

FMCX differentiates itself through its actively managed, concentrated approach, focusing on a smaller number of holdings compared to many equity ETFs. While many ETFs aim for broad diversification, FMCX deliberately takes concentrated positions.

Its expense ratio of 0.70% is higher than many passively managed broad market ETFs but may be competitive with other actively managed funds employing a similar strategy.

Does FMCX pay dividends?

According to the latest data, FMCX has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders. Investors seeking income-generating investments may want to consider other ETFs with a higher dividend yield.

The fund's focus is primarily on capital appreciation through stock selection, rather than generating income through dividends. Therefore, FMCX may be more suitable for investors prioritizing growth over income.