According to data from the Pew Research Center, more Americans have turned to religion and increased their sense of personal faith during the pandemic. This faith in religion is also reflected in their investment portfolios where returns are not the only things that are in the foreground.
“The success of a financial plan begins with the client-advisor relationship, especially for Faith clients,” said an article from Wealthmanagement.com. “Knowing that a financial advisor treats their values and faith with respect helps a client feel more comfortable. This is why it is crucial for advisors to have conversations with their clients about their faith, and how this can (or not) impact their investment decisions.
Two options of Global X
ETF provider Global X offers investors two options to align their Catholic values with their investment goals: S&P 500 Catholic Values ETF (CATH) and the Global X Catholic Values Developed ex-US ETF (CEFA).
CATH seeks investment results that generally match the price and return performance of the S&P 500® Catholic Values Index, which is based on the S&P 500® Index and is typically made up of around 500 or less common stocks listed. in the USA. From this starting universe, constituents are filtered to exclude companies involved in activities that are perceived to be incompatible with Catholic values as described in the Guidelines for Socially Responsible Investment of the United States Conference of Catholic Bishops. United.
- Investing in Values: CATH excludes companies involved in activities perceived to be incompatible with Catholic values defined by the United States Conference of Catholic Bishops, including weaponry and child labor.
- Minimize Tracking Error: By providing exposure only to companies engaged in activities that conform to Catholic beliefs (via the S&P 500 Catholic Stock Index), CATH seeks to minimize tracking error by matching the sector weights of the S&P 500 at large.
- Efficiency of ETFs: CATH allows investors to buy and sell a large basket of US stocks that comply with Catholic guidelines, with the tax efficiency of an ETF.
CEFA seeks to provide investment results that generally match the price and yield performance, before fees and expenses, of the S&P Developed ex-US Catholic Values Index. The Underlying Index is designed to provide exposure to equity securities from developed markets outside of the United States while maintaining alignment with the moral and social teachings of the Catholic Church.
- Investing in Values: CEFA excludes companies involved in activities perceived to be incompatible with Catholic values as defined by the United States Conference of Catholic Bishops, including weaponry and child labor.
- Minimize tracking error: By matching sector weights, CEFA seeks to minimize tracking error against the S&P EPAC ex-Korea Large Cap Index (a benchmark for developed markets outside of the United States) .
- ETF Efficiency: CEFA allows investors to buy and sell a large basket of global equities that comply with Catholic guidelines, with the tax efficiency of an ETF.
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