The topic of financial investments from a Christian perspective is an interesting one, as is the whole idea of “ethical investing” in general. What are some considerations we should have from a Christian perspective when it comes to investing money for our own financial gain, retirement, or even day to day livelihood?
Let’s posit a few ideas in this regard. Let me say that none of this is meant to be the final word on ethical Christian investing. This is just me and some ideas I personally have on the subject. Here we go:
1. We don’t want our investments to promote pornography or the sex industry.
This means that no individual stocks should be bought from company directly involved in the pornography industry. This is an easy guideline to implement, as mutual funds from promiment investment firms (American, etc) to my knowledge, never invest in such firms. (Although it’s only out financial self interest that their mutual funds are structured this way – it’s not based on ethics. I do suspect that if large pornography companies went public they would make their way into many mutual funds eventually.)
2. We don’t want our money invested in companies that produce alcohol and cigarettes.
This is far tougher to implement. Why? The nature of big business today is of a handful of mammoth companies who own many different companies. If Company A is a cigarette company and a subsidiary of Company B, which also owns 200 other companies, does this mean all investments to the other 200 companies should be avoided even if they have nothing to do with cigarettes? This is tough question to answer. Ideally, I’d say yes, but again, it’s hard to not end up investing in ethical and profitable companies who are actually owned or connected to another company who may participate in other financial ventures which are are ethically or spiritually disagreeable.
3. We don’t want our money placed into companies directly involved in war profiteering or weapons manufacturing.
This means companies that produce guns, bullets, war machinery, and weapons for war should not be in our portfolio. This is a huge industry, but it’s fairly easy to avoid in a mutual fund.
4. We don’t want to investment in companies who violate human rights or otherwise exploit laborers.
This also is a big problem and strikes off many huge companies from the list.
To this end, there are investment vehicles out there that meet this criteria. These mutual fund products are put together to meet guidelines like the ones we’ve described above. This is often called Social Responsible Investing, Ethical Investing, Green Investing, or Faith Based Investing. All these actually describe something a little bit different from one another, and would not all be considered ‘Faith Based’ or Christian centered investing. However, the ethics involved tend to overlap, creating a larger market of ethically based investment opportunities.
Encouragingly, there are actually dozens of mutual funds out there which meet our criteria of 1-4 above partially of fully. Let’s take a look at 3 funds readers may be interested in learning more about.
Ave Maria Catholic Values Fund (AVEMX): This mutual fund does not invest in companies involved in pornography or abortion. They also do not invest in any companies that contribute financially to Planned Parenthood. Additionally, they also filter out investments to any company that offers benefits to nonmarital partners. I am assuming this is code for same sex benefits that are becoming more common these days.
New Covenant Growth Fund (NCGFX): This mutual fund screens out companies involved in gambling, alcohol, and guns.
Timothy Plan Large/Mid-Cap Value Fund/A (TLVAX): Thus mutual fund doesn’t put any financial investments into companies involved in pornography, alcohol, tobacco, gambling, and what the company describes as promoting “nontraditional lifestyles or a homosexual agenda”.
It’s encouraging to see the growth of such Christ-centered investment vehicles – I encourage you to acknowledge what your money may be supporting if you only invest based on profitability without any consideration to morality and the effects of your investments.