Catholic ETFs Gain Amid Historic Election of Pope Leo XIV

The election of Cardinal Robert Prevost as Pope Leo XIV, the first American to lead the Catholic Church, comes as Catholic-aligned ETFs are showing strong performance in 2025.

According to Reuters, Cardinal Prevost was elected Thursday as the surprise choice to lead the Catholic Church, becoming the 267th pope following the death of Pope Francis. The 69-year-old Chicago native, who spent much of his career as a missionary in Peru, chose the name Leo XIV, echoing the legacy of Leo XIII, who was known for his focus on social justice issues.

As the Catholic world welcomes its first American pope, investors seeking faith-aligned portfolios have been increasingly turning to religious ETFs that screen investments based on specific values, with Catholic-focused funds showing strong recent performance.

Investors Follow CEFA

The Global X S&P Catholic Values Developed ex-U.S. ETF (CEFA) has surged 16.6% over the past month, according to FactSet data. The fund, which tracks an index of large-cap stocks from developed markets outside the U.S., employs screens based on Catholic values established by the U.S. Conference of Catholic Bishops.

CEFA maintains a zero-tolerance approach for companies with revenues from unconventional weapons, contraception, abortion and stem cell research, according to FactSet. The ETF allows conventional military weapons sales, accounting for up to 50% of revenues, and excludes firms with evidence of child labor.

The fund has attracted $4.8 million in net inflows over the past three months, bringing its assets under management to $22.9 million. Top holdings include France's EssilorLuxottica SA at 2.3% and Australia's CSL Limited at 2.2%.

Growing Interest in Values-Based Investing

Its U.S.-focused counterpart, the Global X S&P 500 Catholic Values ETF (CATH), has also posted strong returns with a more than 15% gain over the past month. Despite year-to-date outflows of $52.9 million, the fund manages $885.8 million in assets.

Both CEFA and CATH are issued by Mirae Asset Global Investments and maintain sector exposures proportional to their benchmarks while screening out companies that conflict with Catholic values.

Other faith-based funds apply different religious criteria to their selection process. The FIS Biblically Responsible Risk Managed ETF (PRAY) has gained 13.4% over the past month and employs an active management approach.

PRAY evaluates global stocks for growth at a reasonable price characteristics before applying a Christian values filter, according to FactSet. This process eliminates companies engaged in activities conflicting with Christian values, including abortion, human rights violations, pornography, alcohol, armaments and gambling.

The Inspire 100 ETF (BIBL) follows a market-cap-weighted index of large-cap U.S. stocks aligned with biblical values. BIBL excludes companies involved in abortion, gambling, alcohol, tobacco, pornography, LGBT lifestyle or rights violations. The fund has gained 14.7% over the past month.

As Pope Leo XIV begins his papacy with a call for "peace, charity and being close to people," as reported by Reuters, faith-conscious investors continue to seek financial instruments that reflect their religious principles.