Faith Based Investing for Christians and Beyond

As Christians, we're called to be good stewards of the resources God has given us, including our finances. This means investing our money in ways that align with our values and faith.

Many Christians are turning to faith-based investing as a way to do just that. This approach involves investing in companies or funds that share our values and promote positive social and environmental impact.

Faith-based investing isn't just for Christians, though - people of all faiths and backgrounds can benefit from this approach. By investing in companies that prioritize social responsibility and sustainability, we can make a positive impact on the world while also growing our wealth.

Faith-based investing isn't about avoiding hot stocks, but about aligning your investments with your principles.

Investors put their money into vehicles that generate a good return, but faith-based investors take into account environmental, ethical, and social focus.

You can find the investment principles followed by religious groups publicly available and easy to find.

For instance, Christian investors may enlist the professional assistance of a Christian investment company that only offers investments that align with Christian principles.

These firms often avoid investing in companies involved with tobacco, adult entertainment, and gambling.

Knowing your priorities, such as doing good, generating a return, or both, will help guide your faith-based investment strategy.

Many Christians have not thought about what their investment dollars are supporting, but there is a movement of investors waking up to this fact.

Investors are starting to pay more attention to the investments they support and are looking for ethical, responsible, and impactful investing.

Ultimately, faith-based investors want to glorify God with their investment-making decisions, considering their money as God's money entrusted to them.

Biblically-aligned companies don't necessarily have to be Christian companies, but their philosophy and operating practices must align with biblical principles.

Investors who identify as Christian often have a unique approach to investing, guided by their faith and values. This approach is sometimes referred to as values-based investing or Biblically Responsible Investing.

Many Christians have not considered what their investment dollars are supporting, investing in companies that manufacture or distribute items that promote addictive behaviors, such as alcohol, gambling, or pornography.

The Bible teaches us to be good stewards of the resources God has given us, including our money. This means thinking of our investments as God's money, entrusted to us to manage wisely.

As Christians, we're encouraged to glorify God with our investment-making decisions, which means investing in biblically-aligned companies. This doesn't necessarily mean investing in Christian companies, but rather companies whose philosophy and operating practices align with biblical principles.

Some Christian financial firms offer faith-based funds that screen investments to ensure they align with biblical values. These firms may review companies to verify their alignment with biblical beliefs and regularly monitor the funds to ensure consistency.

Here are a few examples of Christian financial firms that provide biblically responsible investments:

To build a biblically responsible investment portfolio, you can consider working with a Christian financial firm that provides screened funds, ETFs, and managed models.

Catholics and Jews are not the only faiths with guidelines for faith-based investing. Other faiths also have their own principles and practices.

For example, the Catholic Framework for Economic Life outlines 10 faith-based guidelines for investors. Similarly, Jewish values guide investors who want to align their faith with their investment strategies. These values include philanthropy and diversification, as dictated in the Talmud.

Investors from other faiths may also consider socially responsible investing, which is often closely associated with Jewish-oriented investment strategies. This approach addresses issues like climate change, social justice, and local or global issues.

Some examples of faith-based investment funds include the iShares MSCI Israel ETF, which invests primarily in Israeli securities, and the LKCM Aquinas Fund, which follows the socially responsible investment (SRI) guidelines set by the U.S. Conference of Catholic Bishops.

Catholics who invest their money often follow the Catholic Framework for Economic Life, which outlines 10 faith-based guidelines to help make decisions about the economy and finance.

These guidelines are based on human dignity and the moral law, and investors who adhere to them tend to avoid firms that engage in gender and/or racial discrimination, support abortion and contraceptives, promote and/or fund embryonic stem cell research, produce weapons of mass destruction, or participate in the adult entertainment industry.

Instead, Catholic investors favor firms that support human rights, environmental responsibility, and fair employment practices via the support of labor unions.

Catholic Investment Services is one such firm that seeks strong returns for its clients while keeping religious principles at the heart of its investment strategy. It serves more than 50 Catholic institutions and has a list of 800 restricted companies.

The LKCM Aquinas Fund is another example, which follows the socially responsible investment (SRI) guidelines set by the U.S. Conference of Catholic Bishops. It aims to maximize investor capital in the long term with Catholic investing principles in mind.

Here are some examples of firms that Catholic investors tend to avoid:

Islamic investing is a conservative approach that's both ethically and socially responsible. It's based on halal principles, which prohibit investing in certain areas.

Investors who follow halal principles avoid short-term speculation, as it's considered gambling. They also steer clear of investments that pay interest, such as money market accounts and traditional savings accounts.

Companies that engage in and profit from alcohol, pornography, and gambling are also off-limits. Heavy debt is a no-go too, as it often involves paying interest on loans.

Pork-related businesses are also forbidden. This means investors have to be mindful of the companies they invest in.

Some mutual fund firms offer strategies based on Islamic values. Amana mutual funds, for example, avoid bonds and other interest-bearing securities. They instead seek protection against inflation through long-term equity investments.

The Iman Fund is another option, established by Allied Asset Advisors specifically for Muslims in 2000. It adheres to Shariah principles by investing capital in halal investments.

The Jewish community has a unique approach to investing that's guided by their faith's values. Philanthropy and diversification are key principles in the Talmud, emphasizing the importance of giving and diversifying investments.

Investors following Jewish faith-based strategies often focus on socially responsible investing, which aligns with several commandments and mitzvot. This includes investments addressing climate change, social justice, local or global issues, and shareholder engagement.

Mutual funds like the iShares MSCI Israel ETF (EIS) cater to Jewish investors, investing primarily in Israeli securities and tracking a market capitalization-weighted index. As of January 18, 2024, this non-diversified fund had net assets of $131.4 million.

The Jewish Funders Network's "Greenbook: A Guide to Jewish Impact Investing" (2021) offers a comprehensive handbook for investors seeking to align their investments with Jewish values. This resource includes strategies and asset types for investors to consider.

Investors looking for faith-based investment options in Canada can explore the assets under management in the country's faith-based investment industry, which was $[insert data] in 2023.

Biblically responsible investments are a growing subset of socially responsible investing, with a focus on aligning with Christian values.

Christian financial firms provide faith-based funds that screen investments to ensure they align with biblical beliefs. These firms spend countless hours reviewing companies to verify their consistency with biblical values.

Envoy offers screened funds, ETFs, and managed models in their plan menus, providing a convenient option for investors.

Assets under management (AUM) represent the total market value of the investments that a person or entity manages on behalf of clients.

Calculating AUM can be complex, as different financial institutions include varying types of investments in their totals. Some include bank deposits, mutual funds, and cash.

AUM definitions and formulas vary by company, which can make comparing investment options tricky.

In calculating assets under management, some financial institutions limit it to funds under discretionary management, where the investor assigns authority to the company to trade on their behalf.

An investment is essentially a way to grow your money over time. This can be done by acquiring an asset or item with the goal of generating income or appreciation.

The primary goal of an investment is to increase its value or generate income. This can be achieved through various means, such as dividends, interest, or capital gains.

Investments can take many forms, including stocks, bonds, and real estate. Each type of investment has its own unique characteristics and potential for growth.

Investors often look for investments that offer a good balance between risk and potential return. This means weighing the potential benefits against the potential downsides, such as market fluctuations or economic changes.

Ultimately, the key to successful investing is to have a clear understanding of your financial goals and risk tolerance. This will help you make informed decisions and choose investments that align with your needs.

Timothy Plan's ETFs are a great option for those looking to invest in a biblically responsible way. They offer a unique approach to investing that aligns with Christian values.

Their smart beta ETFs use cutting-edge investment strategy to manage risk and achieve returns. This approach values stocks based on their volatility rather than company size or production.

This aligns with the goal of Godly stewardship, where investors seek to manage risk for the investor by leaning on companies that exhibit price stability.

Biblically responsible investments can have a positive impact on the community, enabling companies with high moral character to establish a greater presence. This is achieved by actively supporting organizations that adhere to Biblical principles of right and wrong.

The impact of our investments affects more than just our account statements, it enables companies of high moral character to establish a greater presence in our community at large.

Historically, Biblically Responsible Investing (BRI) funds have been expensive and underperforming, but more recent studies show that actively managed, screened portfolios tend to perform similarly or better than unscreened portfolios over a long period of time.

Historically, BRI funds have been expensive and underperforming.

More recent studies show that actively managed, screened portfolios tend to perform similarly or better than unscreened portfolios.

There is no reason to believe that those who invest in biblically responsible funds will have lower returns than other investors.

Biblically responsible investment managers want to provide options that focus on a fund's expense and rate of return, as well as its moral value.

The impact of our investments affects more than the return column on our account statements. It enables companies of high moral character to establish a greater presence in our community at large.

Scripture warns that the volume of riches can increase, but the impact can lessen if that increase is offset by support of activities and ideologies that have a direct negative effect on our community.

Our mission is rooted in moral imperatives, which call us to actively support organizations and companies that are working to build the best possible future, by adhering to Biblical principles of right and wrong.

Through our support, organizations with the most positive message can become the most influential in the future designs of our community.

Transparency is key in faith-based investing, and Timothy Plan has always been upfront about the holdings of its mutual funds. You can contact the home office to find out which stocks are in a particular fund.

Transparency also means being clear about operating expenses and sales charges. This helps you make informed decisions about your investments.

If you're a Ministry Leader, you can use Timothy Plan's resources to promote Biblical Financial Stewardship to your staff.

Transparency is a top priority for any leader, and it's essential to be open and honest with your audience. Transparency in leadership is about being clear and direct in your communication.

One great example of transparency is Timothy Plan's mutual funds, which have always been transparent about their holdings. You can contact the home office to find out which stocks are in a particular fund.

Being transparent about operating expenses is also crucial. Timothy Plan will always be upfront about these costs, so you know exactly what you're paying for.

Transparency builds trust with your audience, and it's a key characteristic of strong leadership.

As a Ministry Leader, promoting Biblical Financial Stewardship to your staff is crucial for setting a good example and fostering a culture of transparency.

We have some great ways to do this, such as providing resources and guidance on managing finances wisely.

Ministry Leaders can also lead by example by being transparent about their own financial decisions and choices.

By doing so, you demonstrate the importance of financial stewardship and encourage your staff to do the same.

This can be as simple as sharing your own budgeting process or being open about any financial struggles you may be facing.

Biblically Responsible Investing is a concept that's been around for a while, but it's still not widely understood. It's not a new idea, but rather a way of investing that aligns with your faith values.

If you're looking to match your values with your investing, you might be surprised to learn that Biblically Responsible Investing is different from Socially Responsible Investing. While they share some similarities, they have distinct approaches to investing.

Secular retirement plans often don't take into account your faith values, but Biblically Responsible Investing offers an alternative. It's a way to plan for your retirement while staying true to your faith.

For the average investor, Biblically Responsible Investing can seem daunting, but it's actually more accessible than you might think.