Investors interested in gaining targeted exposure to a biblically responsible investment strategy can look to the James Biblically Responsible Investment ETF (Cboe: JBRI). JBRI tries to reflect the performance of the James Biblically Responsible Investment Index, which is comprised of large and mid-capitalization U.S. stocks of biblically responsible issuers.
The rules-based indexing methodology screens out or excludes companies engaged in activities that are objectionable from a biblical perspective, including abortion; entertainment companies with products or practices that promote sexually graphic, violent, profane material; glorify the use of drugs and alcohol; or create propaganda or content intended to undermine positive family values parents are trying to instill in their children; pornography; companies with products or practices that promote gay, lesbian, bisexual, transgender/transsexual, or questioning lifestyles, including through advertisements or marketing campaigns targeted to those with such lifestyles; alcohol; companies that use methods to support terrorist organizations, undermine human rights, undermine workers’ rights, or persecute Christians; tobacco; and gambling.
Watson also added that the indexing methodology incorporates fundamental screens to help enhance potential returns so that potential investors would not have to sacrifice performance to achieve their investment goals. At James Investment, they employ a rating system that incorporates relative value, relative strength and profitability when selecting component holdings. The portfolio is then equally weighted.
Investors seeking to use BRI ETF’s in a portfolio can utilize it in the socially responsible sleeve for U.S. equities, as part of a core u.s. large- or mid-cap exposure and utilize it for smart beta exposure to U.S. equities to achieve competitive performance.
“Use JBRI to align your investing with your principles,” Watson said. “Invest confidently knowing JBRI follows established investing principles rather than market whims. JBRI strives to demonstrate that investing biblically doesn’t mean sacrificing performance.”