Today, Faith Investor Services released its next ETF, the FIS Bright Portfolios Focused Equity ETF (BRIF ).
BRIF seeks to deliver long-term capital appreciation for its investors. This fund is actively managed and possesses a net expense ratio of 65 basis points.
The capital appreciation strategy for BRIF is primarily based in large cap companies. Bright Portfolios operates as the sub-adviser for this fund.
To choose large caps to invest in, Bright Portfolios utilizes a quantitative screening process. This screening process involves seeking out long-term trends that could work in favor of specific assets. These trends include market conditions, price and volume trends, and geopolitical issues.
Afterward, BRIF looks at both fundamentals and qualitative factors to find companies that can outperform in the long term. The overall portfolio is weighted in consideration of the sector and stock weightings for the MSCI USA Index. Per the fund prospectus, this is done in order to make sure the fund can provide wider diversification to large-cap sectors.
Faith-Based Value Factor
For the individual stock selections, Bright Portfolios then applies a faith-based value overlay. Once the screening is all said in done, BRIF anticipates 30 to fifty companies will be cleared for inclusion in the portfolio.
To help mitigate portfolio risk, BRIF is frequently monitored by an active management team. BRIF’s portfolio team may sell securities in a company if Bright Portfolios deems the company to no longer be in alignment with BRIF’s faith-based values.
Up to 10% of BRIF’s assets may be allocated to either cash or cash equivalents. This may be done in order to protect overall principal, or if there are not enough investment opportunities. Should BRIF seek to remain more fully invested, this cash may instead by moved to other ETFs or open-end or closed-end funds.
Now available on the market, BRIF marks the third ETF from Faith Investor Services to be listed in the United States. The largest Faith Investor Services ETF, the FIS Christian Stock Fund (PRAY ), holds over $60 million in assets under management.
For more news, information, and strategy, visit ETFDB.
