Inspire 500 ETF (PTL) seeks to track a faith-based version of the S&P 500 Index, which measures the performance of 500 large-cap U.S. companies while applying biblical screening criteria to exclude businesses involved in activities conflicting with Christian values.
How It Works
PTL uses a passively managed, market-capitalization-weighted approach that mirrors the S&P 500 but excludes companies involved in abortion, pornography, human trafficking, and other activities deemed inconsistent with biblical principles. The fund rebalances quarterly to maintain alignment with index changes while continuously monitoring holdings for compliance with faith-based screening criteria. Holdings composition mirrors the S&P 500's sector allocations after exclusions.
Key Features
- Combines broad S&P 500 exposure with biblical screening, offering faith-based investors large-cap diversification without compromising values
- Recently launched in March 2024, providing a newer alternative in the growing faith-based investing segment
- Zero expense ratio structure makes it cost-competitive with traditional S&P 500 ETFs while adding values-based screening
Risks
- This ETF can lose value during broad market downturns, potentially declining 30-40% in severe bear markets like traditional S&P 500 funds
- Biblical screening may exclude profitable companies, potentially creating performance gaps versus unscreened S&P 500 ETFs during certain market periods
- As a newly launched fund with minimal assets, liquidity may be limited and bid-ask spreads wider than established alternatives
Who Should Own This
Best suited for faith-based investors with 5+ year time horizons seeking core equity exposure (30-60% of portfolio) aligned with Christian values. Medium-to-high risk tolerance required due to equity volatility. Appropriate for investors willing to accept potential performance differences versus traditional S&P 500 funds in exchange for values-based screening.