Betashares has listed two ETFs on the ASX focused on Catholic values following investor demand.
The funds – Australian Shares Catholic Values (AECV) and Global Shares Catholic Values (GECV) ETF – were listed on the ASX on 1 October.
AECV focuses on Australian equities while GECV is unhedged and excludes Australia with a focus on global equities.
The ETF provider said the fund launches are in response to demand for Catholic values-based investment options from its client base.
To meet Catholic values, the ETFs apply an exclusionary screening criteria which has reference to the Socially Responsible Investment Guidelines of the United States Conference of Catholic Bishops (USCCB).
These identify certain business activities, including those relating to abortion, contraception, weapons production and pornography, for exclusion or restriction in investment portfolios. The screens also cover activities such as gambling, tobacco, child labour and modern slavery.
Although the use of exclusions is common for ethical or ESG funds, Betashares said it has opted not to describe the funds in this way.
“Their indices apply exclusions informed by Catholic social teaching, rather than relying solely on broad ESG criteria. That clarity is part of the appeal, so investors can understand what is excluded and why,” said a spokesperson.
“The funds are not certified under the Responsible Investment Association Australasia’s Responsible Investment Certification Program, and they are not marketed as broad ethical investment options. They are designed for investors who want their investments to reflect specific Catholic values.”
GECV and AECV are intended as a “core or smaller allocation to equities” for investors seeking capital growth, a minimum five-year timeframe and a high or very high risk tolerance.
The funds were previously available in an unlisted format for several years but Betashares said it has now reduced the management fee, updated the investment objective and converted the funds to an ETF to expand investor access.
A similar vehicle from Global X – S&P 500 Catholic Values ETF (CATH) – is available in the US which is now over US$1 billion in size. However, Hejaz has launched active ETFs in Australia which are Sharia-compliant for Muslim investors and invest in equities screened in accordance with Islamic investment principles.
Earlier this year, the Vatican Bank launched two equity benchmarks, in collaboration with Morningstar. The Morningstar IOR Eurozone Catholic Principles and the Morningstar IOR US Catholic Principles track 50 medium- and large-cap companies aligned with Catholic ethical criteria, serving as a reference point for faith-based investments worldwide.
The initiative forms part of IOR’s broader effort to embed Catholic social doctrine into its investment process while adhering to global best practice in transparency and reporting.