Faith Based Investing

[bretthexum]

Saw this on marketwatch.com today. It got on the "naughty list" for 2009

Faith Shares ETFs
Category: Worshipping the wrong higher power

Oklahoma-based FaithShares introduced the first exchange-traded funds that invest based on religious beliefs, first starting a Catholic Values fund (FCV 25.77, +0.28, +1.10%) , a Christian Values fund (FOC 25.69, +0.10, +0.39%) and a Methodist Values fund (FMV 25.55, 0.00, 0.00%) . The firm recently added a Baptist fund (FZB 25.27, 0.00, 0.00%) and a Lutheran fund (FKL 25.41, 0.00, 0.00%) .

Each fund is based on a series of custom indexes, so that it excludes "objectionable industries" for each denomination. With all of the funds based on Christian beliefs -- therefore holding similar portfolios -- each denomination has been reduced to an affinity group.

There have been faith-based traditional mutual funds for a long time, but each is run by managers who practice what they preach, focusing on -- and living by -- the tenets of their own religion. By trying to be all things to all denominations, FaithShares proved that the God it really worships is the Almighty Dollar.


Does anyone you know invest in these funds?

[dismayed]

When I look at the Catholic fund and see drug companies in it that are likely producing products that they wouldn't agree with, or the pacifist denominations and see defense contractors in their ETF baskets, I have to think this is just someone trying to make a buck more than anything else.

[Midtowner]

Doesn't all investment require an element of faith?

[gmwise]

When I look at the Catholic fund and see drug companies in it that are likely producing products that they wouldn't agree with, or the pacifist denominations and see defense contractors in their ETF baskets, I have to think this is just someone trying to make a buck more than anything else.

I had some years ago a few shares that was supposedly green, did some checking and found out that was the furtherest from the truth.
Got out and a few years later(recently) heard they have disbanded.
Same one who are "helping" run the fund is also helping those so called "faith insurance" groups.
RED flag is up for those now.

[mugofbeer]

Faith-based funds are kind of a similar type of animal as "socially conscious" funds that seek to invest only in companies that adhere to the tenents of the littany of special interests typically supported by the left. I have done some research into "socially conscious" funds and have not found any that are particularly stand-out funds performance-wise. Performance has usually been rather sub-par with some occasionally in the fairly-decent catagory.

Funds that adhere to some sort of morality theme are generally pretty limited in what they can or cannot invest in due to the fact someone will find something objectionable about most any company in their portfolio.

[MadMonk]

That almost sounds like the beginning of a joke.

"A Catholic, a Christian, and a Methodist, walk into an investment firm..."

[mugofbeer]

Trying to apply moral standards to investing is a sure way to sub-standard performance.

[bluedogok]

Trying to apply moral standards to investing is a sure way to sub-standard performance.

Pretty much...that may be why most highly successful fund managers seem to have a complete lack of morals.....

[mugofbeer]

Such as? Give me some names and examples?

[gmwise]

Bernie Madoff
Raj Rajaratnam
Jeffrey I. Greenstein
Ralph Cioffi
Matthew Tannin
Michael Lauer
Michael Steinhardt