EXECUTIVE SUMMARY
- Faith-based investing has been practiced in the U.S. for more than 150 years by believers from diverse religions.
- The S&P 500® Catholic Values Index and the S&P U.S. Catholic Values Aggregate Bond Index exclude activities by certain companies or governments that are not aligned with the Socially Responsible Investment Guidelines of the U.S. Conference of Catholic Bishops (USCCB).
- The S&P Catholic Values Indices Methodology, combined with the USCCB Guidelines, captures broad market performance with the added benefit of faith-based investing within a multi-asset-class index offering.
MEASURING THE MARKET THROUGH A CATHOLIC LENS
Sustainable investing has in one form or another been present throughout time. The notion of responsible investing is practically as old as investing itself. Records date back to the 18th century, when faith-based groups such as the Quakers and the Methodists provided guidance on “sinful” investments to avoid. To this day, faith-based strategies like Shariah-compliant investing are offered within the broader sustainable investment framework. Faith-based or faith-consistent investing begins with alignment with the formal religious teachings and beliefs of a tradition, and it includes promoting all the values, priorities, and practices judged to be consistent with those teachings.
Examples of aligning financial outcomes with one’s values range from faith-based investing, socially responsible investing, sustainable investing, or environmental, social, and governance (ESG) investing. The belief used to guide faith-based investing can be grounded in formal religious dogma or simply generational thinking, with an emphasis on seeking to leave the world a better place for the future.
