Assets in religious-themed funds are soaring these days, topping $17 billion in 50 funds, up from a mere $500 million 10 years ago, The Wall Street Journal reports. The funds run the gamut of faiths, from Muslims, to Catholics to Presbyterians.
Is this such a good idea? In the past, a look at the fees and the returns of such funds showed they were all over the map. But today, many religious-themed mutual funds are beating the market, particularly because many of them are multi-cap funds.
But it also has to do with the screens that they use, which tend to yield companies with little debt, strong earnings and management teams that are in tune with their shareholders. And as assets in these funds have grown, their fees have come down.
“A disciplined approach will always work, regardless of whether it’s Muslim-based or Jewish-based or Christian-based,” said David Young, a former pastor who is now a regional vice president at financial planning firm Householder Group.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.