Biblically Responsible Fund Filed

September 28, 2017

Exchange Traded Concepts has filed for an ETF that tracks an index based on biblical principles. The James Biblically Responsible Investment ETF (JBRI) tracks an index that selects its components based on how acceptable they are by biblical standards.

James Investment Research, an investment manager that notes its dedication to “God-honoring principles” on the main page of its website, is the driving force behind the fund, having lent its name to the product and developed the index’s methodology. The firm is listed as the fund’s sponsor in the prospectus.

The fund’s index components are selected from the 1,000 largest U.S.-listed stocks, which are screened to exclude companies involved in practices and products that are not acceptable under the values laid out by the Christian Bible.

The index excludes companies involved in abortion, entertainment, pornography, lifestyle, alcohol, rights, tobacco and gambling, according to the prospectus.

Proprietary Model

Companies that remain in the selection universe are then scored using a proprietary model that evaluates them based on valuation, profitability and momentum. The index selects the top 100 companies based on their scores and equally weights them, the prospectus said.

It also notes that the stocks are evaluated on a monthly basis for any changes in activities that would disqualify them from inclusion, removing the ones that fail to meet the standards. And every quarter, the components are reset to their equal weights.

There are already three ETFs currently trading that similarly focus on biblical values, all of them issued under the Inspire brand. The largest is the Inspire Global Hope ETF (BLES), which has slightly less than $45 million in assets under management.

Contact Heather Bell at [email protected]

 

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