Funds and ETFs that invest in faith
Updated:
23 MAR, 2026
In a world where sustainable criteria have become an essential part of financial analysis, a more specific but growing trend is attracting the attention of investors looking to align their portfolios with their deepest convictions: faith-based investing. But, can you be a good investor without giving up your ethical principles? The answer is yes. Therefore, we show you which are the funds and ETFs that invest in faith, and invest in companies taking into account the criteria of the Catholic Church, so that investors have them on their radar.
These vehicles exclude companies that violate Catholic social doctrine (such as those linked to abortion, contraception, embryo research, or pornography) and prioritize sectors compatible with human dignity, care for creation, and social justice. In this article, we analyze the most representative investment funds, their selection criteria, and the challenges they face in the current market environment.
How we select the funds and ETFs that invest in faith
For this, we have selected the existing investment funds and exchange-traded funds (ETFs) that follow the doctrine of the Catholic Church. The returns shown below have been obtained from Morningstar as of February 28, 2026.
| Funds and ETFs | ISIN | 1-year return | 3-year return | 5-year return |
|---|---|---|---|---|
| E.T.H.I.C.A. | FR0013428158 | 16.08% | 13.51% | 10.42% |
| Ibercaja Compromiso Solidario | ES0158216004 | * | * | * |
| Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF | IE00BG0NY640 | 15,04% | 12,97% | 9,76% |
| Social Awareness | ES0121156022 | 3,88% | 5,07% | 1,79% |
| Variance Altum Faith-Consistent | ES0167937004 | 13,97% | ** | ** |
E.T.H.I.C.A.
Virginie Dubois, Product Specialist at Allianz Global Investors
Every day it is clearer that investors are no longer looking only for financial returns. But also other types of non-financial returns, whether they are related to environmental, social or ethical objectives. E.T.H.I.C.A. was created with the intention of offering an investment solution to investors who wish to invest according to their ethical values while aspiring to generate profitability over a market cycle. Beyond organizations related to the Church, the ethical strategy of this fund may be attractive for both institutional and individual investors. The fund manages 107 million euros at the end of January 2026.
How does E.T.H.I.C.A. intend to meet its financial and ethical objectives?
Well, specifically, the objective of E.T.H.I.C.A. is to exceed the profitability of the MSCI EMU index; investing at the same time according to the principles of the social doctrine of the Catholic Church.
The investment philosophy of E.T.H.I.C.A actually arose from a close collaboration between the National Episcopal Conference of the Bishops of the Catholic Church in France (CEF) and our Conviction Equity investment team, a specialist in sustainable equity in Europe for 24 years.
As a result of this collaboration, E.T.H.I.C.A. has integrated into its investment process the 6 principles of the "Ethical guidelines for financial management" of the Catholic Church: human rights, respect for life, promotion of peace; respect for fundamental labor rights; development of social progress and employment; environmental protection; compliance with market rules; compliance with best governance practices. These principles are broken down into 23 more specific criteria that guide all investment decisions. In particular, the fund refuses to invest in companies with practices related to abortion, contraceptives that prevent reproduction and research with embryonic stem cells. Companies related to weapons, adult entertainment, gambling or tobacco also cannot be part of the portfolio.
As part of the Conviction Equity strategy of AllianzGI, E.T.H.I.C.A is a prudent fund, based on fundamentals, with a long-term investment horizon in line with the Church's need to preserve capital.
Ibercaja Solidarity Commitment
Jorge Urriza, Head of Strategy-Business Management at Ibercaja
Investment consistent with faith requires transferring the principles and values that the Catholic Church defends to our clients' investment activity. Ibercaja, through specific investment solutions such as Ibercaja Solidarity Commitment and specialized advice, seeks to facilitate access to financial markets and promote the pursuit of the common good, combining economic objectives with the moral coherence of investors. This fund is the result of the concern of Religious Institutions to invest in a way consistent with faith.
Since the publication of Mensuram Bonam (MB) by the Pontifical Academy of Social Sciences, we have a framework for the integration of the Social Doctrine of the Church into our investments based on the pillars of faith, exercising our investment activity with vision and responsibility for integral human development.
The Social Doctrine of the Church has been the main source of principles for faith-based investment. Throughout history we observe its evolution, through different encyclicals, but with a common background, the human meaning of business activity, even before the professional (Benedict XVI, Caritas in veritate)
Taking MB as a call to action, we have developed our own methodology and established an Ethical Committee that oversees our investments in the Ibercaja Solidarity Commitment fund, helping us to discern between financial fiduciary duty and consistency with faith.
Ibercaja Solidarity Commitment promotes the pursuit of the common good, integral ecology, social justice and the care of the common home, also applying the exclusion criteria included in the document through its four pillars: defending the intrinsic dignity of human life, avoiding destructive behaviors for the human being, recognizing global impacts, and ensuring environmental protection.
Furthermore, it is a sustainable fund, classified as article 8 according to SFDR. With a mixed investment strategy, Ibercaja Compromiso Solidario invests in public and private fixed income of medium and high credit quality and up to a maximum of 30% in variable income.
Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF
Laure Peyranne, Head of ETF Iberia, LatAm & US Offshore at Invesco
In an environment where investors are increasingly aware of the impact of their financial decisions, value-based investment has gone from being a niche trend to becoming a firm conviction for many profiles. For those who are guided by the principles of the social doctrine of the Church, investing is not just a matter of profitability, but also of ethical coherence.
The Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF precisely meets this need. It is an ETF that offers access to European equities integrating, from the design of the index, the moral and social principles of Catholicism, and which already has a track record of more than seven years in the market.
The process of building the investment universe is based on a clearly defined framework, designed from the beginning in conjunction with the index provider and the Catholic Church. From this approach, the ETF systematically excludes those companies whose activities are not compatible with these values, such as those linked to armaments, adult entertainment, abortions, animal experimentation or stem cell research.
Along with these exclusions, the fund adopts a selective approach that prioritizes companies with better ESG practices within each sector, thus reinforcing the commitment to responsible management. This approach allows it to be classified as article 8 according to the SFDR and maintain the highest ESG rating (AAA) from MSCI ESG Research.
Far from being a limitation, this approach has proven to be compatible with solid financial performance. By the end of 2025, the ETF had an annualized return of 14.41%, demonstrating that investing with principles does not mean giving up results.
Finally, being an ETF, any parishioner or company has access to the same conditions for everyone, regardless of the size of the investment. And very easily and economically: with a single operation, you get immediate exposure to all the companies in the index at an annual cost of 0.30%. In addition, its total transparency allows you to consult the composition of the portfolio at any time, so that the investor can always check the companies in which he is invested.
Ethical Awareness
Jorge González, fund analysis director at Tressis
The Social Conscience fund is a unique investment proposal that combines financial profitability with moral coherence. Its policy integrates traditional financial criteria with an ideology inspired by the Social Doctrine of the Catholic Church.
The selection process applies both positive criteria —social welfare, commitment to the third world, family reconciliation, social justice, environmental sustainability and respect for labor rights— as well as negative or excluding criteria, which leave out sectors such as armament, alcohol, gambling or activities that harm the environment or violate fundamental rights. An independent Ethical Commission, which meets quarterly, supervises the compliance with these principles, guaranteeing the protection of human life, the defense of peace and respect for Human Rights.
From a positioning point of view, the fund maintains a cautious profile. The bond portfolio has a duration of 3.7 years and a yield of 2.91%, with an average credit quality of A rating. Equities represent 14.9% of the assets, with a predominance of European companies over American ones. Dollar exposure stands at 6.4%, while gold reaches 2.7% through listed instruments.
The portfolio highlights European sovereign and supranational issues, along with bonds from sectors such as infrastructure, public services, consumption or industry, many of them linked to the energy transition and the sustainable economy. Within equities, we find exposure to companies such as: ASML, Iberdrola and Schneider Electric. In addition, there is a Global X S&P 500® Catholic Values ETF and the Janus Henderson Horizon Global Sustainable Equity Fund.
In the case of Tressis, this type of strategy has found a natural fit in institutions with a strong identity and purpose. Historically, religious institutes and congregations have been pioneers in SRI investing, driven by the need to align their asset management with their founding mission and values. For these entities, it is not just about achieving profitability, but ensuring that every investment decision is consistent with their ideology and contributes positively to society. In addition, more and more third sector entities and family assets are incorporating SRI criteria to combine financial prudence with positive impact and reputational coherence.
Varianza Altum Faith-Consistent
Pelayo Gil-Turner González, Investment Director at Varianza Gestión
We have been experiencing a few years where the alignment of investments with beliefs is gaining traction. And in response to this trend, the supply of financial products seeking to cover this area is increasing.
Just as it happens with the offer of ESG funds (Environmental, Social and Corporate Governance) and the controversy around greenwashing (investment strategies that are presented as sustainable when they are not), something similar begins to be evident in funds that claim to be aligned with the DSI (Social Doctrine of the Church): what could be called faithwashing.
Many funds, analyzed in detail, do not apply criteria consistent with what they sell. It is true that the lack of a unified DSI investment policy made the matter difficult, but since the publication of Mensuram Bonam there is a defined “lane”.
Investment policies can emphasize different principles such as the common good, the universal destination of goods, subsidiarity or solidarity. Also in exclusions such as abortion and contraception, pornography, controversial armament, gambling or embryonic experimentation. Or reinforce positive criteria such as decent work, integral human development or social impact. But a fund that claims to be aligned with the DSI cannot just measure carbon dioxide, parity in boards of directors and “a few more things”.
Given the abundance of supply, investors must develop criteria to discern between funds that are truly aligned and those that are pure marketing strategy. Our recommendation is that they review the fund brochures looking for clear and consistent investment criteria, not a mishmash of vague and well-intentioned measures that do not constitute a clear alignment policy with the DSI. Likewise, the main positions of a fund allow you to get an idea of the type of companies that the strategy covers.
From VARIANZA, together with Altum Faithful Investing, we have taken great care of the clarity and forcefulness of the investment policy of a long-term patrimonial fund, where financial investment and the social doctrine of the Catholic Church are aligned through compliance with the Altum Faithful Investing Investment Guides.
