ETF Evaluator:
Inspire Small/Mid Cap ETF ()
Follow This ETF
(as of Aug 26)
Best Performing in Small Blend Over the Last Year
| 55.4% | Invesco NASDAQ Future Gen 200 ETF (QQQS) |
| 45.8% | iShares Micro-Cap ETF (IWC) |
| 45.6% | First Trust Small Cap Core AlphaDEX® ETF (FYX) |
| 43.8% | Fidelity Enhanced Small Cap Core ETF (FESM) |
| 38.9% | Inspire Small/Mid Cap ETF (ISMD) |
Risk
Index
Risk
Index
ETF Details
Inspire Small/Mid Cap ETF Overview
Inspire Small/Mid Cap ETF (ISMD) is a passively managed U.S. Equity Small Blend exchange-traded fund (ETF). Inspire launched the ETF in 2017.
The investment seeks to replicate investment results that generally correspond, before fees and expenses, to the performance of the Inspire Small/Mid Cap Index.
The fund generally invests at least 80% of its total assets in the component securities of the index. The index provider selects securities from a universe of publicly traded, domestic small and mid capitalization equity securities of companies which have an Inspire Impact Score™ of zero or higher.
About Inspire Small/Mid Cap ETF (ISMD)
There are 3 members of the management team with an average tenure of 7.73 years: Robert Netzly (2017), Darrell Jayroe (2017) and Tim Schwarzenberger (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: Russell 2000 TR USD index with a weighting of 100% and S&P SmallCap 600 Equal Weighted TR USD index with a weighting of 100%. Inspire Small/Mid Cap ETF has 503 securities in its portfolio. The top 10 holdings constitute 3.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
Inspire Small/Mid Cap ETF is part of the Equity global asset class and is within the U.S. Equity ETF group. Inspire Small/Mid Cap ETF has 0.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.6% There is 0.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Inspire Small/Mid Cap ETF has 1.2% of the portfolio in cash.
Assets Under Management
The fund has $334 million in total assets, which is below the $4 billion average for the Small Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
ISMD Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Inspire Small/Mid Cap ETF expense ratio is average compared to funds in the Small Blend category. Inspire Small/Mid Cap ETF has an expense ratio of 0.53%, which is 25% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Inspire Small/Mid Cap ETF has a portfolio turnover rate of 47%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 50% for the Small Blend category.
Recently, in the month of July 2026, Inspire Small/Mid Cap ETF returned -2.1%, which earned it a grade of C, as the Small Blend category had an average return of -2.1%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
Inspire Small/Mid Cap ETF has a trailing yield of 1.12%, which is below the 1.17% category average.
The fund normally distributes its income quarterly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Inspire Small/Mid Cap ETF Grades
Year to date, the ETF has returned 27.6%, 9.6 percentage points better than the category, which translates into a grade of A. The fund has returned 38.9% over the past year (grade of A), 14.1% over the past three years (grade of C) and 9.6% per year over the past five years (grade of A).
For more ETF grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.
Otherwise, for more information about Inspire Small/Mid Cap ETF, including its riskiness, submit your email to unlock the rest of the article.
Gain access to exclusive AAII member-only content.
ISMD Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| ISMD Return (NAV) | -2.1% | 10.1% | 38.9% | 14.1% | 9.6% | na |
| ISMD Return (Price) | -2.2% | 9.9% | 38.6% | 14.1% | 9.6% | na |
| NAV +/- Price Return | 0.112% | 0.123% | 0.273% | 0.044% | 0.001% | na |
| Small Blend Avg | -2.1% | 5.7% | 28.5% | 14.0% | 8.0% | 10.8% |
| ISMD Grade (NAV) | C | A | A | C | A | na |
| +/- Category (NAV) | -0.0% | 4.4% | 10.4% | 0.2% | 1.6% | na |
| ISMD Tax-Cost Ratio | na | na | 0.5% | 0.5% | 1.2% | na |
ISMD Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| ISMD Return (NAV) | 27.6% | 4.2% | 9.8% | 17.3% | -13.6% | 28.4% | 7.5% | 24.4% | -10.2% | na | na |
| ISMD Return (Price) | 27.7% | 4.1% | 9.5% | 16.7% | -13.5% | 29.4% | 7.5% | 24.6% | -11.0% | na | na |
| NAV +/- Price Ret | 0.004% | -0.026% | -0.031% | -0.031% | -0.014% | 0.035% | 0.003% | 0.8% | 7.6% | na | na |
| Small Blend Avg | 18.0% | 8.7% | 11.7% | 16.3% | -15.9% | 24.0% | 12.7% | 24.8% | -9.2% | 14.4% | 19.6% |
| ISMD Grade (NAV) | A | F | D | C | B | B | F | C | C | na | na |
| +/- Category | 9.6% | -4.5% | -1.9% | 1.0% | 2.2% | 4.4% | -5.2% | -0.4% | -1.0% | na | na |
| Risk Measures | |
| Beta: | 1.13 |
| R-Squared: | 56% |
| Standard Deviation: | 19.8% |
| Category Risk Index: | 1.08 |
| Category Risk Rating: | High |
| Total Risk Index: | 1.61 |
| Total Risk Rating: | Above Average |
| Portfolio Characteristics | |
| Yield: | 1.1% |
| Total Assets: | $ 335 Mil |
| Share Class Assets: | $ 335 Mil |
| Turnover: | 47.0% |
| Expense Ratio: | 0.53% |
| Index Fund: | Yes |
| Index Tracked: | Russell 2000 TR USD |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | Annually |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 9.4 years | |||
| Average Tenure: 7.7 years | |||
| Managers (Year): Netzly Robert (2017), Jayroe Darrell (2017), Schwarzenberger Tim (2022) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 503 |
| % in Top 10 Holdings: | 3.0% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.2% |
Portfolio Allocation |
|
| Domestic Stock: | 98.6% |
| Foreign Stock: | 0.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 1.2% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | Inspire |
| Phone Number: | 877-658-9473 |
| Website: | |
| Inception Date: | February 27, 2017 |
Expenses and Fees
| Expense Ratio (%): | 0.53% (Rating: Avg) |
| Category Average Expense Ratio (%): | 0.42% |
