Timothy Plan International ETF (TPIF) seeks to provide exposure to international developed market equities while applying faith-based screening criteria that exclude companies involved in activities conflicting with Christian values. This socially responsible international equity ETF focuses on developed markets outside the United States.
How It Works
TPIF employs a rules-based screening methodology that filters out companies engaged in activities such as alcohol, tobacco, gambling, pornography, and abortion services from its international equity universe. The fund uses a market-capitalization weighted approach for remaining eligible securities across developed international markets. Holdings are rebalanced periodically to maintain adherence to both investment and ethical screening criteria, resulting in a concentrated portfolio of faith-compliant international stocks.
Key Features
- Unique faith-based screening excludes companies involved in alcohol, tobacco, gambling, and other activities conflicting with Christian values
- Provides international diversification while maintaining ethical investment standards for values-driven investors seeking global exposure
- Zero expense ratio structure makes it cost-effective for investors prioritizing both returns and religious convictions
Risks
- This ETF can lose value significantly during international market downturns, potentially declining 40-50% in severe global recessions like 2008-2009
- Faith-based screening reduces diversification by excluding entire sectors and major companies, potentially increasing concentration risk and tracking error
- Currency fluctuations can impact returns as international holdings are converted to USD, adding volatility beyond underlying stock movements
Who Should Own This
Best suited for faith-based investors with 5+ year time horizons seeking international equity exposure as a satellite holding (10-25% of equity allocation). Medium-to-high risk tolerance required due to international equity volatility and reduced diversification from screening. Ideal for Christian investors building globally diversified portfolios while maintaining religious convictions.