Global X S&P 500 Christian Values ETF (CHRI) seeks to track the S&P 500 Christian Values Index, which applies faith-based screening criteria to exclude companies involved in activities like alcohol, tobacco, gambling, and adult entertainment while selecting from the largest 500 U.S. companies.
How It Works
CHRI uses a passively managed, market-capitalization-weighted approach that mirrors its benchmark index after applying Christian values-based exclusionary screens. The fund holds S&P 500 companies that pass faith-based criteria, maintaining proportional weightings based on market value. Rebalancing occurs quarterly to align with index changes and screening updates. Holdings typically number 400-450 companies, representing approximately 80-90% of the original S&P 500 universe after exclusions.
Key Features
- Combines broad S&P 500 exposure with faith-based screening, excluding alcohol, tobacco, gambling, and adult entertainment companies
- Maintains similar sector diversification to S&P 500 while adhering to Christian investment principles and values
- Recently launched ETF with 0.00% expense ratio, though this promotional rate may increase after initial period
Risks
- This ETF can lose value when excluded sectors outperform, as screening removes potentially profitable companies from tobacco, alcohol, and gaming industries
- Limited performance history makes it difficult to assess tracking error and deviation from broader market returns during various conditions
- Concentrated exposure to large-cap U.S. stocks means 30-40% declines possible during severe bear markets, with no small-cap diversification benefits
Who Should Own This
Best suited for faith-based investors with 5+ year time horizons seeking core large-cap U.S. equity exposure (30-50% of equity allocation) while maintaining Christian investment principles. Medium-to-high risk tolerance required due to equity volatility and sector concentration from exclusionary screening.