FTHB targets companies that align with faith-based investment principles, screening out businesses involved in activities like gambling, alcohol, tobacco, and adult entertainment while seeking income generation through dividend-paying stocks that pass both financial and values-based criteria.
How It Works
The fund applies negative screens to eliminate companies conflicting with faith-based values, then focuses on dividend-paying stocks from the remaining universe. It likely uses a combination of ESG data providers and proprietary screening to identify qualifying companies, though the zero expense ratio and minimal AUM suggest this may be a proof-of-concept or sponsored fund rather than a commercial product.
Key Features
- Zero expense ratio makes it the cheapest faith-based ETF option available
- Income focus differentiates from growth-oriented ESG funds that often exclude dividend payers
- Values-based screening more restrictive than typical ESG, excluding entire sectors
Risks
- Essentially zero assets and no track record - this fund could liquidate at any time
- Faith-based screens eliminate large sectors, creating concentration risk in remaining holdings
- 0.47% yield suggests either poor execution or limited high-yield options after screening
Who Should Own This
Best suited for investors who prioritize religious values alignment over returns and are willing to accept sector concentration and limited liquidity. The zero expense ratio appeals to cost-conscious faith-based investors, but the fund's viability is questionable given its microscopic asset base - consider established alternatives like BIBL or FIS unless the free pricing is critical.