Faith-driven investing is gaining popularity
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Faith-based investment funds are gaining popularity as their assets reached $100 billion last year for the first time. This growth coincides with the presidency of Donald Trump and an increasing religious sentiment in the US.

There has been a noticeable increase in faith-based investments in the exchange-traded and mutual fund market. Investors, often Christian or Catholic, are showing interest in funds that align with their values by avoiding affiliations with activities like abortion, tobacco, and gambling.

According to Brightlight, a study on faith-based investments, the market's value expanded to at least $130 billion in the past year, with assets managed by such funds increasing by 14% in the year leading up to June 2024. Faith-based ETFs specifically saw a 27% growth in assets in 2024.

Notably, demand for screening services to identify stocks that align with faith-based values has doubled since 2023. Inspire, claiming to be the largest faith-based ETF provider globally, has experienced a surge in interest in its investment products, managing $3 billion in assets last year, $1 billion of which came in the 18 months prior to September.

Companies such as Guidestone have also witnessed an uptick in demand for their faith-based investment products. The firm now manages $22.5 billion in assets, marking a 46% increase over the past three years.

While there are funds tailored to various religious beliefs, Christians, Catholics, and evangelicals constitute a significant portion of the investors partnering with Inspire and Brightlight, according to CEO Robert Netzly and Tim Macready, Head of Global Advisory at Brightlight.

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