Biblically Responsible Investing (BRI) is a way of investing to align your faith with your financial choices. We know that values guide the way we speak, what we say, and everything we do. It is not as common to think about investing and biblical values and the impact the combination of the two can have. The basic idea of BRI is to invest with the “good” and steer clear of companies that go against biblical principles.
Investing in the “good” involves focusing on companies that operate according to biblical values. The best way to summarize operating biblically is companies that “love your neighbor as yourself.” This can be demonstrated by the company by the way they treat the employees, customers, and community.
Steering clear of companies that go against biblical principles include companies that profit from abortion and pornography. When screening, it is more common than imagined seeing funds with large percentages of violations. Below is a prime example of this situation. The SPY ETF is shown below: SPDR’s ETF for the S&P 500®. With holdings shown as of February 10, 2021, we can see that the total violations amount comes to a significant 78.5% of the fund being invested in objectionable companies, as broken down by each category on the left.
Source: eValueator http://evalueator.com
When allowed to choose between a seemingly unlimited universe of funds versus a very small pool of specialty funds, why might one go for the latter? To us, the answer is simple: Biblically Responsible Investing allows investors to align their investments with their beliefs. God calls us to be stewards of the money that is entrusted to us. Unfortunately, there is not a clear definition of what it means to be a steward of that money, and this idea is interpreted in many ways. However, it is especially important to remember that if a person owns stock, he or she is a part-owner in that company. Being an owner, investors have a voice to advocate for the company to act in a manner they see right. By implementing a BRI approach to investing, clients can invest in ways that are consistent with the moral standards of the Bible and where they know what values their money is supporting.
With multiple resources available, if you would like to know if your current portfolio follows a biblical approach to investing, we could take a look at it for you. With access to detailed information, you can gain a better understanding of BRI options and make educated investment decisions from there. If a Biblically Responsible Investing approach aligns with your needs and desires or you want to know more, please reach out to Jim at firstname.lastname@example.org.