ETFs as a Voice for Values: The Rise of Faith-Based and Politically Aligned Investing

The Power of the ETF Wrapper

ETFs have long been praised for democratizing access to asset classes, strategies, and sectors. Faith-based ETFs are no different. They provide a transparent, tradable, and cost-effective way for investors to express their values in public markets.

What sets these products apart is not just their screens or exclusions, but their ability to highlight companies that might otherwise fly under the radar.

Whether it's screening out businesses involved in certain industries or spotlighting those that operate according to Biblical values, these ETFs give voice to a segment of the market not often covered in mainstream financial media.

Case Study: TOV and the Power of Aligned Capital

One of the more notable recent launches in the faith-based ETF space is the JLens 500 Jewish Advocacy U.S. ETF

Despite its recent entry into the market, TOV has already attracted over $117 million in assets, according to ETF Action (ETF Action, Apr 2025), and charges a management fee of 18 basis points. Its mission is centered around promoting Jewish values, supporting Israel, and standing against antisemitism. The ticker “TOV” itself is derived from the Hebrew word for “good” (ADL, Feb 2025).

TOV's success illustrates how values-based ETFs, when thoughtfully structured and backed by a committed investor base, can find traction quickly—even in a competitive and crowded market.

Not a Performance Pitch

This isn’t an endorsement of faith-based investing as superior or inferior to other approaches. Rather, it’s an acknowledgment that investors increasingly seek alignment between their portfolios and their personal beliefs—and ETFs offer a scalable mechanism to achieve that alignment.

Some ETFs take a values-first approach, filtering companies based on religious or moral guidelines. Others use positive screens to invest in firms that promote family-friendly workplaces, faith-rooted missions, or conservative governance structures. These screens shape portfolios in meaningful ways—sometimes resulting in sector tilts or concentrated exposures that differ from traditional benchmarks.

For some, values-based investing means aligning with specific causes; for others, it means avoiding any ideological screen altogether—believing that equal opportunity across race, gender, or belief is the best foundation.

Capital Markets Considerations

From a capital markets perspective, these ETFs can face unique challenges. A filtered universe often means a narrower investable set, which can impact liquidity and lead to concentration risks. Market makers and APs must account for these structural differences when pricing and supporting such funds.

To ensure smooth trading and operational efficiency, capital markets experts should work closely with product managers during product design to confirm that the underlying basket is sufficiently liquid and tradable—especially when applying screens that result in sector or thematic concentrations. This collaboration is essential to building strategies that are both investable and scalable.

Still, recent launches and the expanding faith-based ETF shelf suggest that there’s both growing demand and increased confidence in the infrastructure that supports these products. Whether the theme continues to grow will depend on sustained investor interest and issuer commitment to the strategy.

Final Thoughts

Faith-based ETFs are about more than performance—they’re about purpose. In an increasingly fragmented and values-driven world, ETFs offer a neutral, rules-based platform through which investors can allocate their capital in alignment with deeply held beliefs.

As the ETF ecosystem continues to mature, expect to see more products that speak to values—religious, political, geographic, or otherwise. Because for many investors today, investing is no longer just about returns. It’s about representation.

About the Author

Nicholas Phillips | President of ETF Capital Markets Advisors LLC
With over 25 years of experience in ETF market making and capital markets, Nicholas Phillips is recognized as a subject matter expert in the ETF industry. He started his career spending the first ten years as a lead market maker for SIG and Goldman Sachs.

At the helm of MCAP LLC's ETF Desk, Nicholas built and scaled the division, enhancing its operations through innovative pricing and risk models, and robust relationships with market makers and issuers. His tenure at Van Eck Associates as Director of ETF Capital Markets further solidified his expertise, managing critical facets of operations and deepening connections within the trading community.

Beyond market making, Nicholas is an avid content creator, sharing insights that demystify complex market dynamics. He is keen on exploring board member roles that benefit from his extensive background and forward-thinking approach to ETF strategies. His dual US/Ireland citizenship complements his global perspective, enriching his professional endeavors in diverse markets.

Disclaimer

Please note that this article reflects the author's personal views and does not represent the opinions of the publication or its affiliates. It is for informational purposes only and does not constitute investment advice. It is essential to seek guidance from a registered financial professional before making any investment decisions.