NSI
National Security Emerging Markets index ETF
Inception Date
12/06/2023
Benchmark Index
MSCI Emerging Markets
Listing Exchange
Nasdaq
Total Annual Fund Operating Expenses
0.75%
NSI Intel
Wall Street's largest emerging markets indexes include national security threats and human rights violators. Our veteran owned company is doing something about it.
Fund Objective & Principal Strategy
The National Security Emerging Markets Index ETF (the "Fund") seeks to track the results, before fees and expenses, of the Alerian National Security Emerging Markets Index (the "Index"). The Index is subject to a National Security Governance (NSG) process that filters out companies that test positive for at least one of nine investment screens:
- Subject to U.S. Government sanctions
- Defense contractor in a country of concern
- Provider of sensitive dual-use items to a hostile military
- Participant in state-sponsored influence operations against the U.S. or its allies
- Strategic threat
- Cybersecurity threat
- Espionage threat
- Human rights violator
- Operator in disputed areas of the South China Sea or East China Sea
NSG Process
The National Security Governance Investing Process behind NSI is modeled on the U.S. Intelligence Cycle:
- Professional Open Source Intelligence tools and methods
- Intelligence Community Analytic Standards
- Continual evaluation and feedback cycle
Why NSI?
NSI seeks to:
- Invest in emerging markets without compromising U.S. national security and human rights interests
- Deny capital to foreign companies that endanger American forces
- Protect shareholder value by reducing geo-political risks associated with bad actors
NSI Intel
AECC Aviation Power
NSI Company Report
- Manufactures engines for Chinese military and civilian aircraft
- Parent Aero Engine Corporation of China (AECC) is a Chinese Military-Industrial Complex Company under U.S. sanctions
- AECC engines power next-generation aircraft, including the Chengdu J-20 “Mighty Dragon,” a stealth fighter reportedly designed with stolen U.S. technology
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
- S&P Emerging Markets BMI (SBBREM)
1. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
2. Federal Register, “Addition of ‘Military End User’ (MEU) List to the Export Administration Regulations and Addition of Entities to the MEU List,” Document No. 2020-28052, 23 December 2020.
3. Federal Register, "Executive Order 14032 of June, 2021," Document No. 2021-12019, 7 June 2021.
4. Brad Lendon, “China has upgraded its best stealth fighter jet with domestic-made engines,” CNN, 28 September 2021.
5. Bill Gertz, “NSA Details Chinese Cyber Theft of F-35, Military Secrets,” The Washington Free Beacon, 22 January 2015.
AviChina Industry & Technology
Critical Intelligence
- Provides aircraft, parts, and services for military and civilian use in China
- Parent Aviation Industry Corporation of China (AVIC) is a Chinese Military-Industrial Complex Company under U.S. sanctions
- AVIC produces next-generation military aircraft, like the J-31 “Gyrfalcon,” a stealth fighter reportedly modeled with stolen U.S. technology
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
- S&P Emerging Markets BMI (SBBREM)
1. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
2. U.S. Department of Treasury, Office of Foreign Asset Control, "Non-SDN Chinese Military-Industrial Complex Companies List," 16 December 2021.
3. Federal Register, "Addition of 'Military End User' (MEU) List to the Export Administration Regulations and Addition of Entities to the MEU List," Document No. 2020-28052, 23 December 2020.
China CSSC Holdings
Critical Intelligence
- Owns and operates shipyard where China’s new aircraft carriers are built
- Parent China State Shipbuilding Corporation (CSSC) is a Chinese Military-Industrial Complex Company under U.S. sanctions
- CSSC calls itself the “main force” in advancing Chinese naval power
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
- S&P Emerging Markets BMI (SBBREM)
1. MarketScreener, “China CSSC Holdings Limited agreed to acquire in Jiangnan Shipyard Co., Ltd. from a group of shareholders for CNY 23.3 billion,” 4 April 2019.
2. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
3. Center for Strategic & International Studies, “In the Shadow of Warships: How foreign companies help modernize China’s navy,” 2022.
4. U.S. Department of Treasury, Office of Foreign Asset Control, "Non-SDN Chinese Military-Industrial Complex Companies List," 16 December 2021.
ZTE Corporation
Critical Intelligence
- Designated “a national security threat” by Federal Communications Commission
- Subsidiary of China Aerospace Science and Industry Corporation, a Chinese Military-Industrial Complex Company under U.S. sanctions
- Pleaded guilty to conspiring to violate U.S. sanctions by illegally shipping sensitive communications technology to Iran
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
- S&P Emerging Markets BMI (SBBREM)
1. Federal Communications Commission, “FCC Designates Huawei and ZTE as National Security Threats,” 30 June 2020.
2. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
3. U.S. Department of Treasury, Office of Foreign Asset Control, "Non-SDN Chinese Military-Industrial Complex Companies List," 16 December 2021.
4. U.S. Department of Justice, “ZTE Corporation Pleads Guilty for Violating U.S. Sanctions by Sending U.S.-Origin Items to Iran,” 22 March 2017.
China National Nuclear Power
Critical Intelligence
- Subsidiary of China’s main nuclear weapons builder
- Parent China National Nuclear Corporation (CNNC) is a Chinese Military-Industrial Complex Company under U.S. sanctions.
- CNNC provides oversight and nuclear fuel for China’s strategic nuclear forces
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
1. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
2. U.S.-China Economic and Security Review Commission, “Hearing on China’s Nuclear Forces,” 10 June 2021
3. Nuclear Threat Initiative, “China Nuclear Facilities,” 15 July 2013.
4. International Atomic Energy Association, “Country Nuclear Power Profiles: China,” 2022.
5. “Ocean-going nuclear plants for South China Sea,” Asia Times, 21 March 2019.
6. U.S. Department of Treasury, Office of Foreign Asset Control, "Non-SDN Chinese Military-Industrial Complex Companies List," 16 December 2021.
7. U.S. Department of Defense, “DOD Releases List of People’s Republic of China (PRC) Military Companies in Accordance With Section 1260H of the National Defense Authorization Act for Fiscal Year 2021,” 5 October 2022.
Dongfeng Motor Group
Critical Intelligence
- Supplies PLA with tactical vehicles, truck-mounted artillery systems, and other armored platforms
- Put on Chinese Military Company Subsidiary list by U.S. Government
- Dongfeng “Mengshi” next-generation vehicles used in sea-crossing exercises simulating a Taiwan landing
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- S&P Emerging Markets BMI (SBBREM)
1. U.S. Department of State, “Communist Chinese Military Companies Listed Under E.O. 13959 Have More Than 1,100 Subsidiaries,” 14 January 2021.
2. OE Data Integration Network, U.S. Army Training and Doctrine Command, “Dongfeng EQ2050 (Mengshi) Chinese 4x4 Light Utility Vehicle," 2024.
3. “PLA practices cross-sea troop transfport with large civilian ferry,” People’s Daily Online, 18 October 2021.
4. OE Data Integration Network, U.S. Army Training and Doctrine Command, “Dongfeng CTL-181A Chinese 6x6 Unmanned Aerial Vehicle (UAV) Launcher," 2024.
5. OE Data Integration Network, U.S. Army Training and Doctrine Command, “Dongfeng CSK-141 Chinese 4x4 Light Tactical Vehicle," 2024.
Zhejiang Dahua Technology
Critical Intelligence
- Sanctioned for involvement in human rights violations and abuses in China’s campaign of repression against ethnic minorities
- Federal Communications Commission banned Dahua surveillance equipment over national security risks
- Reportedly uses ethnic-focused identification technology to alert police when Uyghurs are caught on camera
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
- S&P Emerging Markets BMI (SBBREM)
1. Federal Register, “Addition of Certain Entities to the Entity List,” Document No. 2019-22210, 9 October 2019.
2. Johana Bhuiyan, “Major camera company can sort people by race, alert police when it spots Uighurs,” The Los Angeles Times, 9 February 2021.
3. Federal Register, “Protecting Against National Security Threats to the Communications Supply Chain Through the Equipment Authorization Program,” Document No. 2022-28263, 6 February 2023.
4. Federal Register, “Implementation of Additional Export Controls: Certain Advanced Computing and Semiconductor Manufacturing Items; Supercomputer and Semiconductor End Use; Entity List Modification,” Document No. 2022-21658, 7 October 2022.
Hoshine Silicon Industry
Critical Intelligence
- Sanctioned for accepting or utilizing forced labor in Xinjiang and for contributing to human rights abuses against ethnic minorities
- Put on Uyghur Forced Labor Prevention Act (UFLPA) Entity List
- Silica-based products subject to detention by U.S. Customs & Border Patrol over forced labor concerns
Major Index Holders (as of 09.30.2024)
- FTSE All-World Emerging (101270)
- FTSE Custom Emerging Markets All Cap China A Inclusion Net Tax (FQEACRXX)
- MSCI Emerging Markets (891800)
- MSCI Emerging Markets IMI (MS664220)
1. Federal Register, "Notice on the Addition of Entities to the Uyghur Forced Labor Prevention Act Entity List," Document No. 2022-16754, 4 August 2022.
2. U.S. Customs and Border Protection, “The Department of Homeland Security Issues Withhold Release Order on Silica-Based Products Made by Forced Labor in Xinjiang,” 24 June 2021.
3. Federal Register, "Addition of Certain Entities to the Entity List," Document No. 2021-13395, 24 June 2021.
Nav & Market Price
(as of 04/25/2025)
| NAV | $26.04 |
| NAV Change | -0.05 |
| Market Price | $26.06 |
| Market Price Change | -0.04 |
| Day's Trading Volume | 303 Shares |
| Median BID/ASK Spread (30 day) | 0.33% (as of 04/25/2025) |
| Premium Discount | 0.02% |
| Number of days at | Q2 2025 (as of 04/25/25) | Q1 2025 | 2024 |
| Premium | 8 | 22 | 193 |
| Discount | 10 | 38 | 59 |
Performance Disclosure: The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate, so that shares, when redeemed, may be worth more or less than their original cost. A fund's NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The market price is the most recent price at which the fund was traded. Past performance is no guarantee of future results. For performance data current to the most recent month end, please call toll-free 833-906-5569.
Performance
Past performance is no guarantee of future results. Returns for periods greater than 1 year are annualized.
Top 10 Holdings
(as of 04/25/2025)
| Ticker | Name | Market Value ($) | Shares | % Net Assets |
|---|---|---|---|---|
| TSM | TAIWAN SEMIC-ADR | 707288.40 | 4284 | 9.37 |
| 9BBH | BBH SWEEP VEHICLE | 415064.11 | 415064 | 5.50 |
| SMSN LI | SAMSUN-GDR REG S | 306878.00 | 319 | 4.06 |
| HDB | HDFC BANK-ADR | 284205.46 | 3938 | 3.76 |
| PDD | PDD HOLDINGS INC | 252432.27 | 2427 | 3.34 |
| CHT | CHUNGHWA TEL-ADR | 190368.75 | 4875 | 2.52 |
| MELI | MERCADOLIBRE INC | 184745.55 | 83 | 2.45 |
| IBN | ICICI BANK-ADR | 184669.16 | 5564 | 2.45 |
| RIGD LI | RELIANC-GDR 144A | 183060.00 | 3051 | 2.42 |
| NPSNY | NASPERS-N ADR | 176821.08 | 3389 | 2.34 |
Portfolio Breakdown
(as of 04/25/2025)
News & Insights
10/09/24
NSI Releases White Paper
Excluding Bad Actors from Emerging Markets: Beyond the "All-China" and "Ex-China" Debate
Read07/11/24
BlackRock in China: Nuclear buildup underwritten in part by leading Wall Street firm, report says
Justin Bernier, an adviser to the Coalition for a Prosperous America and co-founder of the National Security Index, a fund company to help Americans invest in emerging markets in ways that don’t hurt U.S. national security and human rights interests, said the report highlights how American financial services firms are working with banks controlled by the Chinese Communist Party to sell investments to the Chinese.
Read04/16/24
Schwab Network Video: Investing with U.S. National Security in Mind
Disclosure: The thoughts and opinions expressed in the video are solely those of the author as of April 16, 2024. The discussion of individual companies should not be considered a recommendation of such companies by the Fund's investment adviser. The discussion is designed to provide a reader with an understanding of how the Fund's investment adviser manages the Fund's portfolio.
Read04/10/24
Nasdaq: National Security Index Rings the Opening Bell
National Security Index, the fund company behind the National Security Emerging Markets Index ETF (Nasdaq: NSI), visits the Nasdaq MarketSite in Times Square.
Read01/16/24
Nasdaq TradeTalks: A fund That Invests in Emerging Markets Without Compromising U.S. National Security
Justin Bernier, Founding Partner of National Security Index, joins Jill Malandrino on Nasdaq TradeTalks to discuss a fund that invests in emerging markets without compromising U.S. national security and human rights interests.
Read12/07/23
New Emerging Markets ETF Removes Chinese Defense Firms, Human Rights Abusers
National Security Index, in partnership with Tuttle Capital Management, today announced the launch of the National Security Emerging Markets Index ETF on the Nasdaq stock exchange under ticker NSI.
Read12/07/23
Nasdaq: New Emerging Markets ETF to Avoid Potential National Security Threats
In 2023, many people have had concerns about investing in broad emerging markets index ETFs... Today, on what happens to be 82 years after the attack on Pearl Harbor, a new related ETF began trading on the Nasdaq.
ReadContact Us
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NSI Intel Reports
Fund Documents
- White Paper: Excluding Bad Actors from Emerging Markets
- NSI Presentation - January 2025
- Fact Sheet
- Prospectus
- Summary Prospectus
- SAI
- Form N-Q for NSI - 2.28.2025
- Form N-Q for NSI - 8.31.2024
- Form N-PX
- Annual Shareholder Report - 11.30.2024
- NSI Full Annual Report
- Semi-Annual Shareholder Report - 5.31.2024
- NSI Full Semi-Annual Report