National Security Emerging Markets Index ETF (NSI) Fund Overview

National Security Emerging Markets Index ETF (NSI) Financial Services Profile

National Security Emerging Markets Index ETF (NSI) offers targeted exposure to emerging market equities, differentiated by its exclusion of companies perceived as threats to U.S. national security. This approach caters to investors seeking both emerging market growth and alignment with specific security interests, operating within the broader asset management landscape.

What Is the Investment Thesis for NSI?

The National Security Emerging Markets Index ETF (NSI) presents a targeted investment vehicle for those seeking exposure to emerging markets while prioritizing U.S. national security interests. With a beta of 0.38, NSI demonstrates lower volatility compared to the broader market, potentially offering a more stable investment in turbulent times. The fund's value proposition lies in its unique screening process, which excludes companies deemed detrimental to U.S. national security, appealing to investors with specific ethical or strategic concerns. However, the absence of a dividend yield may deter income-focused investors. The fund's small market cap of $0.03 billion suggests limited liquidity, which could impact trading efficiency. Future growth hinges on the increasing adoption of socially responsible investing and the fund's ability to attract investors seeking both emerging market exposure and alignment with national security objectives.

Based on FMP financials and quantitative analysis

NSI Key Highlights

NSI's market capitalization is $0.03 billion, indicating a relatively small fund size.

• The fund has a beta of 0.38, suggesting lower volatility compared to the broader market.
• NSI does not offer a dividend yield, which may be a drawback for income-seeking investors.
• The fund invests at least 80% of its assets in securities of its underlying index, providing focused exposure.
• NSI's unique screening process excludes companies deemed threats to U.S. national security interests.

Who Are NSI's Competitors?

NSI is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NSI's Key Strengths?

Unique investment strategy focused on national security.

• Exposure to emerging market equities.
• Lower volatility compared to the broader market (beta of 0.38).

What Are NSI's Weaknesses?

Small market capitalization ($0.03 billion).

• No dividend yield.
• Limited liquidity and trading volume.

What Are the Key Risks for NSI?

Insider selling — insiders were net sellers of roughly $11.2M recently.

• Geopolitical risks and economic instability in emerging markets.
• Competition from other emerging market ETFs and SRI funds.
• Changes in U.S. national security policy.
• Small market capitalization and limited liquidity.

What Are NSI's Competitive Advantages?

• Unique screening process based on national security interests provides a differentiated product.
• Established brand and reputation of National Security Index, LLC.
• First-mover advantage in offering an emerging market ETF with a national security focus.

What Does NSI Do?

The National Security Emerging Markets Index ETF (NSI) is designed to provide investors with exposure to emerging market equities, filtered through a unique national security lens. Established by National Security Index, LLC, the fund invests at least 80% of its total assets in the component securities of its underlying index. This index comprises stocks listed on globally recognized stock exchanges, specifically excluding companies that, in the view of the fund's sponsor, pose a threat to the national security interests of the United States. NSI's investment strategy reflects a growing interest in socially responsible investing, where ethical and security considerations are integrated into the investment process. By focusing on companies that align with U.S. national security interests, NSI aims to offer investors a way to participate in emerging market growth while adhering to specific values. The ETF's approach differentiates it from broad-based emerging market ETFs, which typically do not incorporate such screening criteria. The fund's performance is therefore tied to both the overall performance of emerging markets and the specific selection of companies that meet its national security criteria.

What Products and Services Does NSI Offer?

• Invests in stocks listed on globally recognized stock exchanges within emerging markets.
• Excludes companies that are deemed a threat to U.S. national security interests.
• Tracks an index created by National Security Index, LLC.
• Aims to provide exposure to emerging market equities with a national security filter.
• Invests at least 80% of its total assets in the component securities of the index.

How Does NSI Make Money?

• Generates revenue through management fees charged on assets under management (AUM).
• AUM growth is driven by investment performance and net inflows from investors.
• Expenses include operational costs, marketing expenses, and index licensing fees.

What Industry Does NSI Operate In?

The asset management industry is undergoing significant transformation, driven by factors such as increasing demand for passive investment strategies, the rise of socially responsible investing (SRI), and technological advancements. Emerging markets continue to be an area of interest for investors seeking higher growth potential, although they also come with increased risks. NSI operates within this landscape by offering a niche product that combines emerging market exposure with a national security focus. Competitors include firms offering broad-based emerging market ETFs and those specializing in SRI strategies, such as ASMF, CCSB, GSIB, GYLD and JADE. The fund's success depends on its ability to attract investors who prioritize both financial returns and alignment with specific security interests.

Who Are NSI's Key Customers?

• Individual investors seeking exposure to emerging markets.
• Financial advisors looking for niche investment products for their clients.
• Institutional investors with socially responsible investing mandates.
• Investors concerned about geopolitical risks and national security threats.

12 transactions · 2 purchases, 7 sales, 3 other transactions · 3 identified insiders · most recent available transactions. Purchases and sales use the reported transaction category. Other transactions include awards, exercises, gifts, withholding and unclassified activity; an acquisition or disposition alone is not a purchase or sale. These records do not establish intent.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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