What is Biblically Responsible Investing? What You Need to Know

There are several reasons in the world to invest money shouldn’t be the only one. An increasing number of investors are selecting specific exchange-traded funds to bring their investments in line with their values and beliefs. When an investment group has a biblical and moral focus, that’s Biblically Responsible Investing or BRI.

Biblically responsible investment is an approach that aligns investments based on faith. Ethics, morals, and adherence to biblical principles and values are a few things that matter in faith-based funds.

Many exchange-traded funds focus on various topics, such as eco-responsible investment or emerging technology. But, what if you are an investor who wants to put their money towards investments agreeable with their beliefs?

BRI investments are the literal opposite of what people call sin stocks. Whereas sin stocks put their money into deforestation, tobacco, alcohol, and gambling, BRI investments avoid all “sin stock” and anti-faith investments.

If you want to invest for more than just the monetary value of your stock portfolio, investing in biblically responsible ETFs could be the way to go. For interested faith investors, the market is open with new and exciting options.

SPDR (S&P Depositary Receipt), iShares, and Vanguard are a few stock funds that can be called biblically responsible. But this article will take you through some more of them. Here’s your guide to biblically responsible investing and a list of biblically responsible stocks.

Let’s Talk About Investing (Based on Your Faith)

Faith-based investments are still new to many professional fund managers. So it’s not a surprise if this is the first time you come to know about them. Let’s go over the basics of faith-based investment and bring you up to speed. Here’s what you should know about faith-based investments and specific ETFs (Exchange Traded Funds) that invest in companies that share the same biblical principles.

What is Faith-Based Investing?

Faith-based investing describes an investment in an ETF that shares the same moral and biblical principles. Also called BRI and Christian SRI, this investing aligns investors’ investments with their faith. Faith-based investing also involves faith-based advisors and faith-based funds.

Faith-based investments are in direct contrast to most of the world’s unethical “sin stocks” and funds. Since not everyone knows about this investment, it is fair to say that more people want to know about investing based on their faith.

Basically, faith-based investing is a way to know where your investments are being applied. It also helps investors keep their investments away from things that don’t support biblical principles.

Additionally, biblically responsible funds focus on money like any other investment. They also keep an eye on the source of those funds. For instance, companies that give back to their communities in faith do rank high. On the other hand, those involved in sin investments get barred from faith funds.

What Exactly is Biblically Responsible Investing?

Biblically responsible investing keep your investments in line with your faith. Only companies that give back to communities and adhere to the same moral principles are available for investment. Biblically responsible investments will never venture into companies that clash with faith-based principles, and that’s the main point.

How are Stocks Guaranteed as Biblically Responsible?

Companies that are part of a biblically responsible fund have to match specific criteria before being included. All companies must follow biblical principles and invest in faith-based initiatives – no sin stocks. Also, they shouldn’t invest in things that might cause a conflict with an investor’s faith.

If you choose a responsible investment group, you know that your money goes to causes that matter. However, if you pick any other investment group, you might have no clear picture of how your investments can impact your faith.

How Can I Invest in Biblically Responsible Stocks?

Investors can find biblically responsible stocks through investment in biblically responsible exchange-traded funds (ETFs). In the past, investors used to hire an investment manager to find the right stock to invest in.

However, today, they can do most of the work themselves with the help of trading apps. All they have to do is decide on their chosen trading app, select an investment fund, and invest as much as they want.

Does Faith-Based Investment Need a Fund Manager?

Fund managers are in charge of selecting the options that make up an ETF. Nowadays, investors don’t need a financial advisor or portfolio manager to make their investments. They can do the same through stock platforms or apps.

Exchange-traded funds are popular nowadays because they give investors control over where they put their money. This has made biblical investments rise to an even higher potential.

Where Can I Find Biblically Responsible Stocks?

Technically, investors don’t look for individual stocks when they invest in a fund – but at the merits of each fund as a whole. Fund managers are responsible for choosing individual stocks, and investors (like you) get to select funds that fit their principles, projection, and budget the best.

What is a Faith-Based ETF?

Faith-based ETFs are a specific type of exchange-traded fund that focuses on faith. While there are funds that revolve around investments in technology or electric vehicles, there are also ones that invest in faith.

A faith-based ETF works almost like any other exchange-traded fund. The only difference is that faith-based ETFs do not clash with principles and values.

See Related: Best ESG Target Date Funds

Why are Faith-Based Funds Recommended?

If you invest in any ETF fund, you might not know where your money exactly goes. Unfortunately, it’s true that the corporate world often sees investment in sin stocks, corporate scandals, and other factors that cannot be in line with faiths.

Biblically responsible funds don’t just invest for money but for the angle of faith and sustainability. Responsible investments are monetization with a moral compass to guide them. With faith-based investments, you know your portfolio will never clash with your principles.

What Does the Bible Say about Investment?

The Bible has a lot to say about money and how people should never forsake their faith or morals for it. Several parables, tales, and verses talk about the dark potential that money can have.

When someone uses money negatively or with greed (without faith), it can be the root of all evil. That means investors should research to ensure their funds will be used for good, charitable, or faith-based causes.

Proverbs 21: Speaks about money, greed, and poverty through the following verses.
Proverbs 21:20: Wise people save for the future, but fools gulp theirs down.
Proverbs 21:5: The plans of the diligent lead to profit, whereas those who are hasty lead to poverty.

As long as you keep the Bible’s advice in mind while investing, you will do well on the way forward. So, all faith-based investors must follow the basic rules to ensure they deal with investment firms that create genuine value and set up future generations for success.

See Related: Best Climate Change Mutual Funds

List of Biblically Responsible Stocks

Biblically responsible stocks are one of the best ways for investors to keep track of their invested money. If this is your first start in the business, the good news is that there is a wide range of biblically responsible stocks. It’s only a matter of finding the one that matches your specific budget and requirements.

Here’s a list of some well-known players in the biblically responsible stock market, including S&P and iShares Select. Let’s talk about them:

1. SPDR S&P Dividend ETF

The SPDR S&P Dividend ETF is one of the most popular exchange-traded funds in the industry for biblically responsible investing. The total assets of this dividend have been measured at more than 24 billion. This number has played a crucial role in making it one of the largest faith-based ETFs.

Companies that make up the S&P Dividend Fund are diverse, but all adhere to basic faith principles. Several industries make up this fund, including agriculture, retail, and technology.

2. iShares Select Dividend ETF

The iShares Select Dividend ETF is a biblically responsible investing ETF from one of the most reputable fund management companies. This fund contains a lot of faith-based companies but is not 100% exclusive to faith-based businesses.

Most of this investment portfolio comprises companies that invest in faith-based morals and principles. It contains a vast list of companies that give back to their communities with regular initiatives. However, that’s not all that makes iShares Select Dividend ETF an excellent option. Over the past few years, this fund has shown high returns for investors.

3. Vanguard Extended Market ETF

Vanguard is a worldwide fund manager trusted with some of the world’s best-known investment portfolios. Their Extended Market ETF is one of the best biblically responsible investments.

The Extended Market ETF is for investors who want to broaden the reach of their investment portfolio. This fund covers more than 3,000 individual companies, most of which support biblical morals and principles through their actions and investments.

Since its start, the Extended Market ETF has continued to do well – thanks to a vast collection of companies under the same umbrella. When these companies do well, investors are guaranteed good returns. Also, even when some businesses in the chain don’t do that well, others pick up the slack to bring the value of the investment group back up.

4. ARK Innovation ETF

The ARK Innovation ETF is another famous biblically responsible fund for investing. This specific fund has been created with a focus on new technology but is also there to bring investments in line with biblical beliefs.

Companies part of this managed fund focus on biblically responsible technology investments because of the word “innovation” in the name. ARK Innovation ETF was first introduced in 2014 and performed very well in the starting years but experienced a sharp, sudden decline in 2021.

Some critics say that the ARK Innovation ETF is a sitting duck, but others see the decline as a way for the fund to make its way back up to the top. Should you invest in ARK or not? Being an investor, that’s totally up to you!

5. iShares Russell Mid-Cap Growth ETF

The iShares Russell Mid-Cap Growth ETF is a generalized exchange-traded fund that isn’t exclusive to faith investments but has a strong moral compass for most companies under its label. Considering responsible investments, this fund has carefully been put together to create a collection of companies that consistently perform well on the market floor.

The iShares Russell Mid-Cap Growth ETF has witnessed strong growth, particularly in 2021. So for any faith-based investor, it could be an ideal investment option.

See Related: Best ETF Brokerage Options

6. VanEck Morningstar Wide Moat ETF

VanEck Morningstar Wide Moat ETF is one of the top investment funds in the industry that inspire investing. This fund puts most of its money into strong industry players, with a focus on minimizing moral and environmental impact.

Large corporations like Microsoft Inc and Tyler Technologies Inc make up the Morningstar ETF. Most of these companies are in line with faith-based principles, though it’s worth mentioning that a handful of companies are the exception.

Morningstar is a good buy for socially responsible investors who want their next investment to include brand-name companies that perform well and will likely continue to do good in the future. If you’re looking for the right investment portfolio, this could be your best choice.

7. SPDR Portfolio S&P 1500 Composite Stock Market ETF

The SPDR Portfolio S&P 1500 Composite Stock Market ETF is a powerful exchange-traded fund. This is the best option for investors who want their next ETF investment to have a strong moral compass (though not exclusively faith-based).

Companies part of this exchange-traded fund rank high in terms of performance, and their future returns are expected to continue this trend. While the starting investment amount for this ETF is higher than some other ETFs, many say that the S&P Composite Stock Market ETF is exactly what they want to invest in.

8. Invesco S&P 500 Pure Value ETF

The Invesco S&P 500 Pure Value ETF is an exchange-traded fund option from a trusted fund manager. This fund allows investors to enter at a lower cost, though likely cash out for a much higher return.

The Pure Value ETF is a biblically-friendly investment as the majority of its companies agree with specified morals and principles. Looking to invest in this ETF? Well, you can consider making your own investment strategies or taking help from a financial professional.

Final Thoughts

This is a quick list of biblically responsible stocks that make the best pick for values-based investing. Admittedly, not exclusively faith-based, but most of the companies on this list can be called moral, at the least! Considering all the metrics, we can say that these stocks will make it simple for Christian investors to line up their investment portfolios with their Christian values.

Evaluate your investment funds and become a biblically responsible investor. Whether you invest in bond funds, equity mutual funds, or ETFs, your faith can have a positive impact on your investment portfolio.

FAQs

Is BRI a new concept?

No, not actually. The idea of choosing investment funds from a faith-based perspective isn’t new. It’s been around for over a decade. Biblically Responsible Investing, Socially Responsible Investing, and Environmental, Social, and Governance are becoming popular, but the strategies that create these terms are old.

What are the factors that investors must consider before using a BRI strategy?

Investors who are genuinely interested in BRI investing must consider the following points:

BRI principles and values
Performance of values-based and BRI funds
Costs associated with companies involved in BRI
The potential to effect change

What do your investments support?

Many Christian investors invest in firms that manufacture or distribute products that focus on addictive behaviors, like alcohol and gambling. These companies donate funds to non-biblical practices while benefiting from investors’ funds.

Fortunately, some investors have started paying more attention to faith-based stocks and are looking for ethical, responsible, and impactful investing. This way, they can ensure that their money is going to companies involved in practices that support their beliefs and faith. It will eventually lead to a better world.

Which stocks are biblically responsible?

Is biblically responsible investing (BRI) a type of investment strategy that seeks to align investors’ beliefs and values with their portfolio holdings. BRI screens potential investments based on certain ethical and moral criteria derived from biblical principles.

Some commonly used criteria include avoiding companies involved in abortion, pornography, or gambling, and investing in companies that promote social justice, environmental stewardship, and human rights. BRI has gained popularity among investors who prioritize their faith and values in their financial decision-making process.

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