When you think of investing, you probably think of trying to grow your money as much as possible without doing anything too risky. That is what investing has traditionally focused on; growing money. However, things are changing.

Our culture has evolved to a point where people want their investments to do more than just make them money, they want them to reflect their values. Because of this, there has been a recent surge of values-based investing. 

Types Of Values-Based Investing

Have you heard of any of these terms before?

• Faith-based Investing
• Values-driven Investing
• Values-based Investing
• Biblically Responsible Investing
• Ethical Investing
• ESG (Environmental, Social, and Governance)
• Socially Responsible Investing (SRI)
• Impact Investing
• Sustainable Investing
• Responsible Investing

Those are all types of values-based investing. Values-based investing is simply investing in companies that reflect your values instead of just focusing on growth potential. The first five are based on religious values and the last five are based on secular values. There is a lot of overlap between the two but also some stark differences.

Differences Between Faith-Based Investing & Secular Values-Based Investing

Some of their commonalities between faith-based investing and secular values-based investing would be things like avoiding companies that exploit the poor or damage the environment. Both would favor companies with high ethical standards and legal compliance and that give back to and lift up their communities. 

Where they would diverge would be on things like LGBTQ issues or abortion. Investments based on religious values would shun companies that supported those things while those based on secular values would favor them. Faith-based investing also usually avoids companies involved in tobacco, gambling, and pornography while secular values-based investors may see nothing wrong with those.

Arguments In Favor Of Faith-Based Investing

The arguments in favor of faith-based investing are simple. Earning a financial return on our investments is a huge part of stewardship, but there is more. We are responsible for how our money is used. We need to ask ourselves, What am I investing in and are there ethical or moral implications? 

The Scriptures address some of the questionable behaviors that modern-day companies participate in. Proverbs 10:2 says, “Ill-gotten treasures have no lasting value, but righteousness delivers from death.” You don’t want your investment income to be ill-gotten treasures. Also, we can see from the way that Jesus threw tables around the temple in Mark 11 that he doesn’t appreciate those in positions of power profiting off the backs of the poor and powerless. In Matthew 25:45, when Jesus says, “Truly I tell you, whatever you did not do for one of the least of these, you did not do for me,” he assigns us the responsibility for how we act (or don’t act) towards others. And that spills over into how the companies that we finances with our (really God’s) money act towards others as well.

To proponents of faith-based investing, the Bible makes it clear that we have a responsibility to ensure that our money is not financing anti-biblical activity. We are responsible for how our money is used even after we invest it in a company.

Arguments Against Faith-Based Investing

While the arguments in favor of faith-based investing are compelling, so are those against it. They ask, How much responsibility are we called to take on? None of us are Jesus and are prepared or called to take on the weight of the entire sinful world. 

If we don’t want our money funding things that we don’t agree with, doesn’t that mean that we should boycott all businesses that act against our beliefs? All for-profit companies that provide health insurance pay for contraceptives and many pay for abortions. If you buy their products or services, you are giving them money to pay for those things. Does that mean you can only shop at the Salvation Army or small businesses that cannot afford health insurance?

What about the government? They pay for abortions, sex changes, and all kinds of other anti-biblical things. Does that mean you shouldn’t pay your taxes? In Matthew 22, Jesus told the people to pay their taxes to Caesar, even though Caesar used the money to do some terrible things. 

Is Faith-Based Investing Right For You?

The question you have to ask is, How far does my responsibility go? And you have to ask it of God, no one else. You see, there isn’t one right answer to that question. It is a matter of personal conviction between you and God. What he asks of one person will be different than what he asks of another person.

A great example of this is the different lifestyles of John the Baptist and Jesus. According to Jesus in Matthew 11, “John came neither eating nor drinking” and “The Son of Man came eating and drinking.” Which was wrong? Neither. They each did as God had called them to do, they just had different calls. 

So, pray about it. Ask God what he has called you to do. Don’t let anyone try to guilt you or pressure you one way or the other. John ate locusts in the desert and Jesus partied with choice food and wine, but they were both faithful to the call of God on their lives in doing so. Don’t compare yourself to others, just be obedient to what God has called you to. 

Where To Find Faith-Based Investments

If you are interested in faith-based investing, here are some of the options available to you: 

• Inspire biblically-responsible ETFs
• Timothy Plan biblically-responsible funds
• Praxis Mutual Funds value-based funds
• Steward Funds value-based investing
• CATH Catholic values fund
• Ave Maria Mutual Funds Catholic values-based investing
• Eventide investing to make the world a better place
• Guidestone Funds faith-based investing

Remember, each organization or investment uses different standards. Just because it’s called faith-based doesn’t mean it will necessarily align with your personal values. Make sure you do your homework to learn about each investment. You are the steward of the resources God has entrusted to you. You are the one that will answer to God for what he has called you to, not your investment company.