As Christians, we know that our relationship with Christ isn’t just supposed to affect our Sunday mornings – it’s supposed to affect our entire lives. From the conversations we have to the movies we watch, God desires for every aspect of our lives to conform to His will.
One aspect that is often easy to overlook is our investment portfolio. Whether people don’t know their available options or haven’t explored their investment accounts in detail, this can lead to Christians who are invested in a way that does not align with Biblical values. At Demand Wealth, we see this problem and our ‘Demand Christian’ portfolio serves as a solution to help Christians invest in a godly way without necessarily sacrificing returns.
The Problem
Imagine a friend asks you for money. She says, “I need to borrow $10 and tomorrow I’ll pay you back $11.” If you trust that this friend will stay true to her word and repay the $11, you’ll probably ask one more question before proceeding with the loan – “What will you do with the money?”
What if she told you she was going to do something that directly opposed your values? Most likely, you wouldn’t feel right going through with the loan. Even if you were to receive a great return, you wouldn’t want the profit at the expense of your convictions. As Christians, if we view an action as immoral, we wouldn’t necessarily want to fund it with money or time. On the other hand, if a friend needed something along the lines of medicine for a sick family member or a car loan, then we are more likely to invest.
The problem is that most people do not take this approach when it comes to their investments. You may not think about where your money is going while it sits in your portfolio, but rather view it as a faceless account that delivers returns. However, if you’re invested in the stock market (whether through stocks, mutual funds, or ETFs), then your money is going to real people supporting real time business decisions. That leaves one question remaining: What are these companies doing with your money?
Everyone’s investment portfolio is unique depending on their choices. For example, let’s say your retirement plan has $100,000 invested in the US stock market. Based on the average of the two largest funds that cover the Total US Stock Index, here is where your money is going1
- $40,340 to companies who are engaged in the abortion industry (either through manufacturing, distribution, insurance, or philanthropy)
- $21,445 to companies engaged in the promotion of violence, language, sex, or drugs through the entertainment industry.
- $18,385 to companies involved in the promotion of pornography.
- $2,080 to companies in the alcohol industry.
- $2,105 to companies engaged in the tobacco and/or cannabis industry.
- $1,120 to companies involved in the gambling industry.
1 Data taken from Evalueator at https://www.christianinvestingtool.com/ and is based on an average of the two largest Total Market Index ETFs.
Altogether, that’s sixty four percent of your plan going towards companies who are engaged in one or more unbiblical practices! While we recognize that not all Christians agree that each of the above issues would be considered morally wrong, there are better options for your portfolio that won’t support ANY of these categories.
Ignorance is Not Bliss
The Bible makes it clear that Christians have a responsibility to avoid knowingly taking part in unbiblical practices. Ephesians 5:11 calls Christians to “Take no part in the unfruitful works of darkness, but instead expose them.” (ESV)
The Solution
The ‘Demand Christian’ portfolio gives Christians access to a diversified portfolio that avoids investing in companies engaged in unbiblical practices.
Twenty years ago, it would be very difficult to invest in a biblically pure and fully diversified portfolio. In recent years, the number of Biblical investment options has increased significantly. Organizations like Thrivent, Ramsey, and Kingdom Advisors offer a platform that connects Christians with like-minded advisors; however, many of these same portfolios aren’t screened for biblical standards. One way to check your own portfolio is through a free biblical screener. It is now possible to have a fully diversified, biblically screened portfolio with a Christian financial advisor at Demand Wealth.
The ‘Demand Christian’ Portfolio
The ‘Demand Christian’ portfolio screens out companies that violate the principles laid out by the Biblically Responsible Investing Institute. This doesn’t mean your options are limited – your portfolio isn’t comprised of 50% Hobby Lobby and 50% Chick-Fil-A, but rather includes the thousands of companies who simply don’t violate those Biblical screens.
Each ‘Demand Christian’ portfolio includes ETFs from Inspire Investing, Timothy Plan and GuideStone. These firms, like us, are committed to investing only in companies which abide by biblically responsible investing principles. Investing in this wide array of aligned funds allows us to maintain a globally diversified portfolio that not only aligns with your Christian values, but is also customized to your fit your needs.
We all have busy lives and our natural tendency is to take the path of least resistance that often ignores a blind spot or two. At Demand Wealth, we make it simple for you to invest without compromising your Christian values and beliefs. Click here to open an account or schedule a video conference with one of our Christian advisors to learn more today.
This report is a publication of Demand Wealth. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.