"Biblically Responsible" Investment Group Launches Fund Excluding LGBT-Friendly Companies
Apple, Google, Starbucks. Most people would be thrilled to have these companies in their stock portfolio. But an investment group has launched two “biblically responsible” exchange-traded funds (ETF) that explicitly exclude companies supporting the LGBT community.
Aimed at conservative Christians, Inspire Investing launched what's believed to be the first ETFs that expressly filter out stocks of companies that have policies or statements supporting LGBT equality. The funds also screen out businesses involved in abortion, alcohol, gambling, pornography or terrorism. (What about guns, war, cigarettes or usury?)
According to the Financial Times, the ETF game is big money: In 2016 it generated $3.5 trillion, attracting investors who "favor the funds’ passive but cheap approach over traditional human asset managers."
Niche investing is nothing new: There are funds that focus on progressive companies, and even a "Catholic Values" ETF that screens out defense contractors, but this is the first to exclude LGBT allies.
“There’s huge demand for low-cost investing aligned with biblical values,” says Robert Netzly, chief executive of Inspire, which donates half its profits to charities. “We love our neighbors in the LGBT community, but our investors want to invest according to conservative values.”
Part of the "biblically responsible investing" (BRI) movement, Netzly believes Jesus will shower his investors with gold for their prejudice, predicting his ETFs will garner “hundreds of millions of dollars” in the coming months. But more and more, corporate America has been at the forefront of supporting LGBT rights: Of the Fortune 500, 89% prohibit discrimination on the basis of sexual orientation, and many sponsor local Pride celebrations.
Companies like Apple, led by out CEO Tim Cook, have begun to issue amicus briefs in support of LGBT rights and, last year, SalesForce CEO Marc Benioff said his company would relocate out of Atlanta if Georgia passes a “religious freedom” law.
“This is out of step with mainstream America, which has embraced non-discriminatory policies and fairness,” the Equality Federation's Mark Snyder told FT. “I think it probably won’t garner much interest.”