Navigating Faith and Finance: A Comprehensive Analysis of Religious ETFs in 2026
Religious exchange-traded funds (ETFs) blend ethical screening with market performance, catering to investors seeking alignment between their beliefs and portfolios. These funds exclude sectors like alcohol, gambling, and weapons, often mirroring broad indices while upholding faith-based principles. As of February 2026, the sector exceeds $130 billion in assets under management (AUM), representing about 0.35% of the $28.8 trillion global ETF market.
Breakdown by Religion
Faith-based ETFs cluster around Christianity, Islam, Catholicism, and Judaism, with Christianity leading in scale.
Christian ETFs (Biblically Responsible Investing - BRI):
The largest segment, led by Inspire Investing, which surpassed $4.275 billion AUM as of January 18, 2026, up over $1 billion since September 2024. Key funds include Inspire 500 ETF (PTL, expense ratio 0.09%) and Global X S&P 500 Christian Values ETF (CHRI). Providers like Timothy Plan and Faith Investor Services offer diversified options.
Catholic ETFs:
Focused on doctrines like human dignity and social justice. Global X S&P 500 Catholic Values ETF (CATH) holds $918 million AUM with a 0.29% expense ratio. Ave Maria Mutual Funds manage $3.8 billion in Catholic-aligned assets as of 2025.
Islamic (Sharia-Compliant) ETFs:
Screen for halal compliance, avoiding interest-heavy debt. The market tops $8.5 billion, with SP Funds S&P 500 Sharia ETF (SPUS, $1.2 billion AUM) and Wahed FTSE USA Shariah ETF (HLAL, $600 million) leading. Emerging markets like ISDE delivered 32.08% 1-year returns through 2025.
Jewish ETFs:
Niche offerings like JLens 500 Jewish Advocacy U.S. ETF (TOV, $207 million AUM, 0.18% expense ratio) emphasise ESG aligned with Jewish values.
ETF Sizes and Key Metrics
Religious ETFs vary widely in scale, with Christian funds dominating due to broader appeal.
| Religion | Example ETF | AUM (USD Billion, Latest) | Expense Ratio (%) | Launch Year |
|---|---|---|---|---|
| Christian | Inspire Total | 4.275 | 0.09-0.65 | 2017+ |
| Islamic | SPUS | 1.2 | 0.45 | 2019 |
| Catholic | CATH | 0.918 | 0.29 | 2016 |
| Jewish | TOV | 0.207 | 0.18 | 2024 |
Data reflects point-in-time snapshots; total Islamic public funds hit $718.94 billion AuM across 2,660 funds as of February 9, 2026.
Performance Overview
Returns generally track benchmarks like S&P 500 (15-16% 1-year as of early 2026) but with ethical filters potentially reducing volatility.
| ETF | Religion | 1-Year Return (%) | 3-Year CAGR (%) | YTD 2026 (%) | Benchmark Comparison |
|---|---|---|---|---|---|
| CATH | Catholic | 16.27 | 19 | N/A | Matches S&P 500 |
| SPUS | Islamic | 14.89 | 16 | -1.03 | Slight lag |
| HLAL | Islamic | 13.19 | 14 | -0.50 | Stable vs. market |
| TOV | Jewish | ~15-16 | N/A | N/A | Tracks S&P 500 |
| PTL/CHRI | Christian | 14-15 | N/A | 6-15 (2025) | Comparable |
Historical data shows Sharia ETFs with 5-7% CAGR over 15 years vs. 8.9% for S&P 500, though recent outperformance in EM segments.
Recent Developments and Milestones
The Vatican Bank (IOR) launched two Catholic equity indexes on February 10, 2026: Morningstar IOR US Catholic Principles and Eurozone Catholic Principles Indices. These track 50 mid-to-large cap stocks like Meta, Amazon (US), ASML, and Deutsche Telekom (Eurozone), emphasising ethical standards. The move signals potential ETF launches, boosting transparency and aligning with the Church’s $3.8 billion+ in Catholic funds.
Other highlights: Bountiful Financial debuted 15 FaithEnhanced Factor Indices on February 10, 2026, covering Catholic, Evangelical, and Latter-day Saint screens across five factors. Inspire’s rapid AUM growth underscores BRI demand.
Forecasts and Market Outlook
Global ETFs could reach $30 trillion by 2029 (PwC, March 2025), with faith-based growing 20-30% annually due to millennial/gen-Z demand. Morningstar’s 2026 Outlook favors passive, values-aligned strategies like intermediate-term principled bonds, benefiting religious ETFs (65-75% probability of normalisation to benchmarks).
Risks include market volatility and screening constraints; upside from institutional adoption, as Vatican indexes license for ETFs. Experts predict Christian/Islamic segments leading expansion. Investors should verify the latest NAVs and consult advisors for personalised fit.
