There are many reasons in the world to make an investment, but money shouldn’t be the only one.
An increasing amount of investors are choosing specific exchange-traded funds to bring their investment in line with the rest of their beliefs. When the chosen investment group has a Biblical and moral focus, that’s called Biblically Responsible Investing – or BRI.
Biblically responsible investment is investing based on your faith: the morals, ethics, and level of adherence to Biblical principles are all things that factor into funds that are considered faith-based ones.
Many exchange-traded funds focus on topics like eco-responsible investment, or emerging technology like electric vehicles – 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 to what people call sin stocks. Whereas sin stocks put their money into deforestation, tobacco, alcohol, gambling, and other principles not in line with the faith of many, BRI investments avoid all forms of “sin stock” and anti-faith investments.
If you want to invest for more than just the money-value of your stock portfolio, investment 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, iShares and Vanguard are just three stock-funds that can be called Biblically responsible – and in the rest of this article, we’ll take you through some more of them.
Here’s your guide to Biblically responsible investments, plus a list of Biblically responsible stocks that you should consider.
Table of Contents
- Let’s Talk About Investing (Based on Your Faith)
- What is faith based investing?
- What exactly is BRI investing?
- How are stocks guaranteed as biblically responsible?
- How can I invest in BRI stocks?
- Does faith based investment need a fund manager?
- Where can I find biblically responsible stocks?
- What is a faith based ETF?
- Why are faith based funds recommended?
- What does the Bible say about investment?
- List of Biblically Responsible Stocks
- 1. SPDR S&P Dividend ETF
- 2. iShares Select Dividend ETF
- 3. Vanguard Extended Market ETF
- 4. ARK Innovation ETF
- 5. iShares Russell Mid-Cap Growth ETF
- 6. VanEck Morningstar Wide Moat ETF
- 7. SPDR Portfolio S&P 1500 Composite Stock Market ETF
- 8. Invesco S&P 500 Pure Value ETF
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 only the first time you come to hear of them. Let’s go over the basics of faith-based investment first and bring you up to speed.
Here’s what you should know about faith-based investments, ETF funds, and specific ETFs that invest in companies who share the same Biblical principles.
What is faith based investing?
Faith-based investing describes an investment in an exchange-traded fund that shares the same moral and Biblical principles.
Faith based or BRI investments are a direct contrast to most of the world’s unethical “sin stocks” and funds – and it’s fair to say that more people want to find out about investing based on their faith.
It’s a way to ensure you know where your investment is being applied, and it’s a way to keep your investment free of anything Biblical principles would not agree with.
Biblically responsible funds focus on wealth like any other fund, but also has a very strong focus on where the wealth comes from (and goes).
Companies that give back to their communities in faith are ranked higher, for example. Any companies involved in “sin” investments are barred from faith funds.
What exactly is BRI investing?
BRI investing keeps your investment group in line with your faith. Only companies that give back to their communities and adhere to the same moral principles are considered for each investment group.
Biblically responsible investments will never venture into investments or companies that clash with faith-based principles, and that is the point of them.
How are stocks guaranteed as biblically responsible?
Companies that are part of a Biblically responsible fund have to match certain criteria before they can be included. All companies have to follow biblical principles, and invest in faith-based initiatives – no sin stocks, or investments in things that might cause a conflict with an investors’ faith.
If you choose a responsible investment group, you know that your money goes to causes that matter.
Choose any other investment group, and you might have no clear idea how your investment might impact your faith.
How can I invest in BRI stocks?
Biblically responsible stocks can be found through investment in Biblically responsible ETFs. While in the past you needed an investment manager to approach one, today investors can do most of the work themselves with trading apps.
All you have to do is decide on your chosen trading app, select your fund and you can invest.
Does faith based investment need a fund manager?
Fund managers are in charge of selecting the options that make up an ETF: in modern times, you don’t need a fund or portfolio manager to make your own investment, but can do the same through stock platforms or apps.
Exchange-traded funds are popular right now because they afford the investor control of where they put their money. This has made Biblical investments rise to even higher potential.
Where can I find biblically responsible stocks?
Technically, an investor isn’t looking for individual stocks when they invest in a fund – but at the merits of each fund as a whole. Fund managers are tasked with choosing individual stocks, and investors (like you) get to select the fund that fits 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 for faith.
A faith-based ETF works just like any other exchange-traded fund, but the difference is that faith-based ETFs will not clash with your principles.
Why are faith based funds recommended?
If you invest in any other ETF fund, you might have no idea where your money goes to – and it’s true that the corporate world often sees investment in sin stocks, corporate scandals, and other factors that cannot be in line with most 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 faith.
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 their morals for it: there are many parables, tales and verses that talk about the dark potential that money and green can have.
When used negatively or approached with greed (and without faith), money can be the root of all evil.
But money can also be applied to charitable and faith-based causes, and used for good.
- Proverbs 21: speaks about money, greed and poverty through the following verses:
- Proverbs 21:20: The wise store up choice food and olive oil, but fools gulp theirs down.
- Proverbs 21:5: The plans of the diligent lead to profit as surely as haste leads to poverty
As long as you keep the Bible’s advice in mind when you invest, you will do well on the way forward.
List of Biblically Responsible Stocks
Biblically responsible stocks are the perfect way for an investor to make sure they know where their money goes.
If this is your first start in the business, the good news is that there are many biblically responsible stocks out there – it’s only a matter of finding one that matches up with your specific budget and requirements.
Here’s a list of biblically responsible stocks that include S&P, iShares Select and some of the largest players in the biblically responsible stock market today.
1. SPDR S&P Dividend ETF
The SPDR S&P Dividend ETF is one of the most popular exchange-traded funds on the market right now for Biblically responsible investing.
Total assets of this dividend are measured at more than $19 billion. This has also contributed to 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 agricultural, retail and technology.
The iShares Select Dividend ETF is a biblically responsible investing ETF from one of the most reputable fund management companies in the business. The Select Dividend ETF contains a lot of companies that are faith-based, but is not 100% exclusive to faith-based businesses.
The bulk of this portfolio is made up out of companies who share in faith based morals and principles, and contains a large chunk of companies who give back to their communities with regular initiatives.
That’s not all that makes the Select an excellent option: in the past few years, it has shown particularly high returns for investors.
3. Vanguard Extended Market ETF
Vanguard is a worldwide fund manager trusted with some of the world’s largest investments – and their Extended Market ETF is one of their biggest, though also one of their 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, of which most are in line with Biblical morals and principles through their actions and investments.
Since its start, the Extended Market ETF has continued to perform well thanks to a strong collection of companies under the same umbrella.
When these companies do well, investors are guaranteed returns – and even when some companies in the chain don’t do as well, other companies pick up the slack to bring the value of the investment group back up.
4. ARK Innovation ETF
The ARK Innovation ETF is one of the most popular Biblically responsible funds 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 investment, hence the word “innovation” in the name.
ARK Innovation was first introduced in 2019 and did very well at its start, but experienced a sharp and sudden decline in 2021.
Some critics say that the ARK Innovation fund 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?
That’s up to you.
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 the majority of the companies under its label.
As far as responsible investments go, the iShares Mid-Cap Growth ETF has been carefully put together to create a strong collection of companies that consistently perform well on the market floor.
Strong growth has been shown for the Mid-Cap Growth ETF, particularly in 2021: for any faith-based investor, it could be a good option to consider.
6. VanEck Morningstar Wide Moat ETF
VanEck Morningstar Wide Moat ETF is a large investment fund that puts most of its money into powerful industry players, with a focus on minimizing moral and environmental impact with the companies it chooses to list.
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 saying that there are a handful of companies which are the exception.
Morningstar is a good buy for responsible investors who want their next investment to include brand name companies that perform well – and will likely continue to do well in the future.
7. SPDR Portfolio S&P 1500 Composite Stock Market ETF
The SPDR Portfolio S&P1500 Composite Stock Market ETF is a powerful exchange-traded fund recommended to investors who want their next ETF investment to have a strong moral compass (though not exclusively faith-based focus).
Companies part of this exchange-traded fund rank high in terms of performance, and their future returns are expected to continue this trend.
While a starting investment is priced higher than some other funds, many say that the S&P Composite Stock Market ETF is exactly what they were looking for.
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 that 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 thanks to the majority of its companies agreeing with morals and principles set out in the word.
Admittedly, it’s not exclusive to faith, but most of the companies on this list can be called moral at the least!
- 10 Important Socially Responsible Investing Pros and Cons
- Socially Responsible Investing: How to Get Started and Best Funds to Buy
- 8 Best Socially Responsible Mutual Funds to Own
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