Is There Any Real Difference Among The Five Religion Based ETFs?

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June 13, 2010 2:55pm NYSE:FCV NYSE:FKL

“The concept of offering faith-based exchange-traded funds is novel, but the offerings available to prospective investors barely differentiate themselves from one another — and are often too


 expensive — according to a new report from Standard & Poor’s. FaithShares Advisors LLC came out with the first series of faith-based ETFs at the end of last year, and remains the only provider to offer such funds. Its five ETFs respectively screen out “sin” stocks, such as those related to gambling or pornography, that conflict with its investors’ religious beliefs,” Jessica Toonkel Marquez Reports From Investment News.

Marquez goes on to report, “The five funds, which together have $9 million in assets, are the FaithShares Baptist Values Fund (NYSE:FZB); Catholic Values Fund Ticker: (NYSE:FCV); Christian Values Fund (NYSE:FOC); Lutheran Values Fund (NYSE:FKL) and Methodist Values Fund (NYSE:FMV). FaithShares has committed to donating 10% of the net income from the ETFs to a charity or ministry supported by the fund’s donation.”

“Regarding the top 20 equity holdings, there is really not a lot of variation among the FaithShares ETFs,” Kenneth M. Leon wrote. Also, the funds’ expense ratio of 0.87% is much higher than the average ETF expense ratio, which is around 0.2% to 0.3%, he said in an interview. “When you are getting close to 1% that’s like mutual fund expense ratio territory,” he said.

Having completely different holdings in each of the funds isn’t the point of having multiple faith-based offerings, said Garrett Stevens, CEO of FaithShares. “Where there are differences is important to the people who buy them,” he said. For example, the Baptist Values Fund screens out alcohol, while the Catholic Values Fund doesn’t, he said.“All of them can agree that Cummins Inc. makes good engines, which is why we invest in them,” he said. “Whether you believe you should have a glass of wine with dinner is a difference.”

Here are some more details we have put together detailing the FaithShares ETFs below:

FaithShares Baptist Values Fund (NYSE:FZB)

The FaithShares Baptist Values Fund investment objective is to track the performance, before fees and expenses, of the FaithShares Baptist Values Index, a custom index by FTSE/KLD.

   
  Primary Exchange NYSE Arca   Management Fee 0.87 %  
  Ticker FZB   Custody Fee 0 %  
  CUSIP 30605Q 108   Annual Fund Operating Expense 0.87 %  

Catholic Values Fund Ticker: (NYSE:FCV)

The FaithShares Christian Values Fund investment objective is to track the performance, before fees and expenses, of the FaithShares Christian Values Index, a custom index by FTSE/KLD.

   
  Primary Exchange NYSE Arca   Management Fee 0.87 %  
  Ticker FCV   Custody Fee 0 %  
  CUSIP 30605Q 207   Annual Fund Operating Expense 0.87 %

Christian Values Fund (NYSE:FOC)

The FaithShares Christian Values Fund investment objective is to track the performance, before fees and expenses, of the FaithShares Christian Values Index, a custom index by FTSE/KLD.

   
  Primary Exchange NYSE Arca   Management Fee 0.87 %  
  Ticker FOC   Custody Fee 0 %  
  CUSIP 30605Q 306   Annual Fund Operating Expense 0.87 %  

Lutheran Values Fund (NYSE:FKL)

The FaithShares Lutheran Values Fund investment objective is to track the performance, before fees and expenses, of the FaithShares Lutheran Values Index, a custom index by FTSE/KLD.

   
  Primary Exchange NYSE Arca   Management Fee 0.87 %  
  Ticker FKL   Custody Fee 0 %  
  CUSIP 30605Q 405   Annual Fund Operating Expense 0.87 %  

Methodist Values Fund (NYSE:FMV)

The FaithShares Methodist Values Fund investment objective is to track the performance, before fees and expenses, of the FaithShares Methodist Values Index, a custom index by FTSE/KLD.

   
  Primary Exchange NYSE Arca   Management Fee 0.87 %  
  Ticker FMV   Custody Fee 0 %  
  CUSIP 30605Q 504   Annual Fund Operating Expense 0.87 %

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