Market Overview

2 New ETFS For 'Biblically Responsible Investing'

2 New ETFS For 'Biblically Responsible Investing'

The universe of exchange traded funds adhering to Biblically Responsible Investing (BRI) principles grew Wednesday with the debuts of two new funds from Timothy Plan.

What Happened

The U.S. Large Cap Core ETF (NYSE:TPLC) and the High Dividend Stock ETF (NYSE:TPHD) are the new funds from Timothy Plan, which has managed faith-based funds for over two decades.

TPLC, the large-cap core fund is a “Biblically Responsible ETF that strives to reduce risk and produce returns through tracking the performance of the Victory US Large Cap Volatility Weighted BRI Index, which includes Timothy Plan's traditional biblical screens,” according to Timothy Plan.

The new ETF tracks the volatility-weighted Victory US Large Cap Volatility Weighted BRI Index. That index's selection universe starts with the Nasdaq Victory US Large Cap 500 Volatility Weighted Index and stocks are removed that do not meet Timothy Plan's screening criteria.

Why It's Important

Timothy Plan's screening standards include pro-family and pro-life qualifiers. As is the case with many traditional environmental, social and governance (ESG) funds, Timothy Plan funds eschew investments in alcohol, gambling and tobacco companies as well as entertainment companies with pornography exposure.

Timothy Plan even maintains a list, formerly dubbed the “Hall of Shame,” of companies that the firm will not invest in. That list includes familiar names such as Berkshire Hathaway Inc. (NYSE: BRK-A), CBS Corp. (NYSE: CBS), Johnson & Johnson (NYSE: JNJ) and Walt Disney Co. (NYSE: DIS).

TPLC charges 0.52 percent per year, or $52 on a $10,000 investment.

What's Next

The High Dividend Stock ETF tracks the Victory US Large Cap High Dividend Volatility Weighted BRI Index, which is also volatility-weighted. That index includes the 100 largest U.S. dividend payers with positive earnings over the trailing four quarters.

TPHD holdings include Aflac Inc. (NYSE: AFL), Broadcom Inc. (NASDAQ: AVGO), Caterpillar Inc. (NYSE: CAT) and Union Pacific (NYSE: UNP).

That new ETF also charges 0.32 percent per year.

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