Timothy Plan US Large/Mid Cap Core ETF (TPLC) seeks to track large and mid-cap U.S. stocks while applying faith-based screening criteria that exclude companies involved in activities conflicting with biblical values. This socially responsible investing approach targets companies with market capitalizations typically above $2 billion.
How It Works
TPLC uses a passively managed approach that starts with a broad universe of large and mid-cap U.S. stocks, then applies negative screening to exclude companies involved in alcohol, tobacco, gambling, pornography, abortion services, and non-married lifestyles. The remaining stocks are weighted by market capitalization. Rebalancing occurs quarterly to maintain alignment with screening criteria and market cap changes. Holdings typically number in the hundreds, providing diversified exposure across sectors that pass the fund's moral filters.
Key Features
- Faith-based screening excludes companies in alcohol, tobacco, gambling, and other activities conflicting with biblical principles
- Zero expense ratio makes it one of the most cost-effective socially responsible investing options available
- Focuses on large and mid-cap stocks, avoiding small-cap volatility while maintaining growth potential
Risks
- This ETF can lose value if excluded sectors like technology or healthcare outperform, as screening may eliminate major market performers
- Limited diversification compared to broad market ETFs due to exclusion of entire industries and high-performing individual companies
- Large and mid-cap stocks can decline 25-35% during market downturns, with potential for extended recovery periods
Who Should Own This
Best suited for faith-based investors with 3+ year time horizons seeking core equity exposure (20-40% of portfolio) aligned with biblical values. Medium risk tolerance required due to equity volatility and sector exclusions. Works well for investors prioritizing values-based investing over maximum returns in retirement or taxable accounts.