Inspire Global Hope ETF (BLES)
Inspire Investing’s Global Hope ETF represents a deliberate narrowing of the investment universe based on two filters applied together: environmental, social, and governance standards alongside alignment with biblical values. The combination is distinctive. While many funds screen for ESG factors, Inspire adds theological criteria — companies must operate in ways compatible with Christian principles around human dignity, stewardship, community, and conscience.
The fund tracks the Inspire Global Hope Index, which begins with a broad global equity universe and systematically removes companies involved in industries deemed incompatible with the values framework: weapons and defence contractors, gambling operators, pornography and adult entertainment, abortion providers, and others. From the remainder, it selects holdings based on positive ESG metrics, building a portfolio of companies judged to balance financial potential with values alignment.
The result is a concentrated portfolio. Applying both theological and ESG screens reduces the investable universe dramatically compared to market-cap-weighted global indexes. The fund holds fewer positions than a broad fund, which increases the impact of individual holdings and the importance of understanding what remains after the exclusions.
How the fund is financed and what it costs
Inspire charges an annual expense ratio that is reasonable for an actively screened, thematic fund. The cost is passed through to shareholders proportionally; the fee is independent of fund size or trading volume, so it does not fluctuate with market conditions.
The underlying companies in the fund often have strong cash flow and dividend policies. Many are established firms with durable businesses — the screens exclude high-risk or speculative sectors, which biases the portfolio toward companies with stable revenue and mature capital structures. Shareholders receive the dividends those companies distribute.
The screening logic and its constraints
The Inspire screening methodology is published and transparent. The ESG criteria draw on a combination of third-party data and proprietary analysis; the values criteria are explicitly grounded in theological principles. A reader interested in understanding which companies are in the fund and why should read Inspire’s materials explaining the index methodology and reviewing the prospectus. The list of exclusions is as informative as the list of inclusions. Understanding what is screened out helps investors understand what the fund is betting on — which sectors and industries are being rejected, and why.
Screening inevitably creates trade-offs. Excluding entire industries means BLES will never hold companies in sectors other broadly diversified funds access. That can be a feature — it aligns returns with values — or a constraint, depending on the investor’s perspective. The fund’s performance will sometimes lag indices unconstrained by the same screens, and sometimes outperform; the outcome depends on how the excluded sectors happen to behave. If a heavily restricted industry (say, energy companies, whose ESG profile makes them candidates for exclusion) outperforms the market in a given year, BLES will miss those gains. Conversely, if a screened-out sector underperforms, BLES benefits from not holding it.
A less obvious constraint is turnover. When a held company’s practices shift or its ESG profile deteriorates, the screening rules may require its removal from the fund. Similarly, as companies are added to the index when they meet the criteria, holdings change. High turnover raises costs and creates tax consequences in taxable accounts. An investor considering BLES should check the fund’s portfolio turnover rate and understand whether it is rebalancing continuously as companies enter and exit the screens or running a more stable, lower-turnover approach.
Who holds this fund and how to research it
BLES serves investors who view values alignment as a material part of the return on investment — not because they expect it to outperform, but because it enables them to hold companies they believe in. It is not a compromise between conviction and market returns; it is a tool for aligning the two. Such investors often prioritise avoiding harm (not holding companies whose practices contradict their beliefs) over maximising returns. This is a legitimate and common investment objective, distinct from trying to beat the market.
Researching the fund starts with Inspire Investing’s documentation: the index methodology, the current holdings list, and the theological and ESG criteria that drive the screens. The prospectus details the fees, the trading characteristics, and the risks. Beyond the fund itself, understanding the impact of the screening on diversification and return characteristics requires comparing BLES to a global equity benchmark and understanding the sectors excluded and the geographic distribution of the holdings. A portfolio that excludes entire industries is less diversified, and investors should understand how that concentration affects volatility and drawdown risk. Reading the Inspire materials on the values criteria themselves — what biblical principles the screening reflects and how they are interpreted — helps investors decide whether the fund’s values framework aligns with their own.