On Thursday, Timothy Plans, a faith-based investment company, announced the launch of two new ETFs, the Timothy Plan High Dividend Stock Enhanced ETF (TPHE) and the Timothy Plan US Large/Mid Cap Core Enhanced ETF (TPLE).
The ETFs are designed to allow investment opportunities that capitalize on dividend return (TPHE) or general market exposure (TPLE) while also protecting from abrupt downward movement of the markets. Both ETFs utilize the Timothy Plan eVALUEator proprietary filter, Biblically Responsible Investing, to exclude companies from its funds that don’t align with their core principles.
These ETFs exclude any companies that are involved in the production or distribution of alcohol, tobacco, gambling, or gambling equipment, or are involved in any way in abortion, pornography, or promoting anti-family entertainment or non-biblical lifestyles.
Victory Capital Management is the Sub-Advisory for both funds, and both follow indexes created by Victory Capital.
TPHE
The Timothy Plan High Dividend Stock Enhanced ETF (TPHE) is a smart-beta ETF that is biblically and ethically responsible, according to Timothy Plan, and seeks growth and income while protecting the investor during market drawdowns.
TPHE tracks the Victory US Large Cap High Dividend Long/Cash Volatility Weighted BRI Index. The index is unmanaged, and it is volatility weighted so that securities with higher volatility have less weighting, and those with low volatility have a higher weighting.
The Index identifies the top 100 dividend-yielding stocks in the US Large/Mid Cap Volatility Weighted BRI Index, which pulls from the parent Index, the Nasdaq Victory US Large Cap 500 Volatility Weighted Index. The Index then uses a BRI filter to exclude securities.
The Index is designed so that during times of rapid drawdown by the market (8% drop of the Nasdaq Victory US Large Cap High Dividend Volatility Weighted Index), it reduces exposure and allocates up to 75% of its stocks to cash or cash equivalents. This cash is invested in 30-day U.S. Treasury bills or money market mutual funds that primarily invest in short-term U.S. Treasury obligations. It then reallocates back to stocks once market prices bottom further or have rebounded.
Top holdings include Costco Wholesale Corp. at 1.62%, Republic Services at 1.58%, and Waste Management Inc at 1.53%.
TPHE has an expense ratio of 0.52% and has 101 holdings.
TPLE
The Timothy Plan US Large/Mid Cap Core Enhanced ETF (TPLE) is a smart-beta ETF that is biblically and ethically responsible, according to Timothy Plan, and seeks broad market exposure while managing risks in market declines.
TPLE tracks the Victory US Large/Mid Cap Long/Cash Volatility Weighted BRI Index. The index is unmanaged and is volatility weighted so that securities with higher volatility have less weighting, and those with low volatility have a higher weighting.
The Index identifies companies with positive earnings in the four most recent quarters and selects the 500 largest by market cap. Companies within the Index are screened for volatility as well as the BRI filter.
The Index is designed so that during times of rapid drawdown by the market (10% drop of the Nasdaq Victory US Large Cap 500 Volatility Weighted Index), it reduces exposure and allocates up to 75% of its stocks to cash or cash equivalents. This cash is invested in 30-day U.S. Treasury bills or money market mutual funds that primarily invest in short-term U.S. Treasury obligations. It then reallocates back to stocks once market prices bottom further or have rebounded.
Top holdings include Costco Wholesale Corp at 0.54%, Republic Services Inc. at 0.53%, and Waste Management Inc. at 0.5%.
TPLE has an expense ratio of 0.52% and currently has 333 holdings.
For more market trends, visit ETF Trends.