Faith-based investing is having a moment

From Yahoo Finance: 2025-03-23 12:15:00

Faith-based investment funds hit $100 billion for the first time last year, rising alongside Trump’s presidency and growing religious sentiment in the US. Assets managed by faith-based funds increased 14% in the 15 months leading up to June 2024, reaching at least $130 billion. Brightlight saw a 27% year-over-year growth in faith-based ETFs in 2024.

Inspire, the world’s largest faith-based ETF provider, reached $3 billion in assets under management last year, with $1 billion coming in the 18 months leading up to September. Brightlight and Guidestone have also seen increased demand for their faith-based investment products, with Guidestone’s assets under management growing around 46% in the last three years.

Investing strategies for faith-based funds aim to align with clients’ religious principles, avoiding investments in companies with links to abortion, alcohol, gambling, or other practices against their beliefs. While many faith-based funds have underperformed the broader market due to screening out certain companies, some have outperformed in 2025.

Religious investors prioritize their faith over market performance, with a focus on investing in line with their values. The surge in faith-based investing is attributed to God’s will, coinciding with Trump’s presidency where white evangelical Protestant voters showed strong support. Faith-based funds have seen increased popularity due to a shifting political landscape in the US.

Faith-based investors have become more vocal and united on conservative issues, with a stance against practices like abortion. Many faith-based investors are pro-Trump, expecting his policies to benefit the companies they invest in. The rise in faith-based funds reflects a broader trend of aligning investments with religious beliefs, driven by Trump’s time in office.



Read more at Yahoo Finance: Faith-based investing is having a moment