NSI

National Security Emerging Markets index ETF

Inception Date
12/7/2023

Benchmark Index
MSCI Emerging Markets

Listing Exchange
Nasdaq

Expense Ratio
0.75%

Total Operating Expense
1.00%

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:

  1. Subject to U.S. Government sanctions
  2. Defense contractor in a country of concern
  3. Provider of sensitive dual-use items to a hostile military
  4. Participant in state-sponsored influence operations against the U.S. or its allies
  5. Strategic threat
  6. Cybersecurity threat
  7. Espionage threat
  8. Human rights violator
  9. Operator in disputed areas of the South China Sea or East China Sea
Fact Sheet

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

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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 06.01.2023)

  • 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)

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