There is no shortage of voices in the world of Christian finance. There are articles, books and podcasts that detail the dangers of debt, the mandate of giving and the importance of managing money God’s way. There’s even a possibility that you’ve heard someone mention the dangers of investing in especially sinful companies. But a quick look at the average Christian’s investment account will reveal that the investments seldom align with our values. Many trusted Christian voices in finance know this but will tell you that it’s not something to worry about.
The fact of the matter is most Christians are currently invested in funds that aren’t screened according to biblical principles (aka “regular funds”).
If you’re not paying attention to where your money is going, you could be investing in companies that support abortion and “sin stocks” (a category of investments that refers to companies that make a significant portion of their profit from alcohol, smoking or gambling). If you check out the ‘Demand Christian’ Portfolio Whitepaper, you’ll see that Christians should be wary of industries beyond typical “sin stocks”. The alcohol, tobacco and gambling industries make up just 2%, 2% and 1% of the total stock market respectively. It seems like an insignificant and fairly avoidable chunk, right? Unfortunately, 40% of the S&P 500 is invested in companies that support abortion, 21% to the promotion of violence, sex and/or drugs through the entertainment industry and 18% is engaged in the promotion of pornography. Combined, 64% of the broad stock market is invested in companies engaged in non-biblical practices.
Unless your portfolio is specifically tailored to avoid these stocks, it’s likely that the amount of your investments in those industries is pretty much the same. While most Christians would hesitate to purchase Philip Morris (the world’s largest tobacco manufacturer), many Christian advisors will tell you it’s different if you’re merely invested in a mutual fund or ETF. Unfortunately, most Christians are willing to simply trust their financial advisor, rather than analyze their holdings.
Another crutch that Christians sometimes use to justify their investments is that it’s simply impractical to do otherwise. The guru who gave the used car analogy ended his argument by saying, “if you start boycotting companies you don’t agree with, you pretty much rule out even having a bank account.” While this may have been true 30 years ago, it just isn’t the case today. By the way, one of our favorite free screeners can be found at Christian Investing Tool.
The ‘Demand Christian’ portfolio is globally diversified and only includes companies that have been carefully screened according to biblical principles. This portfolio is managed by like-minded believers, customized according to your risk tolerance and designed to be a comprehensive investment solution.
We all have busy lives and our natural tendency is to take the path of least resistance that often ignores a blind spot or two. At Demand Wealth, we make it simple for you to invest without compromising your Christian values and beliefs. Click here to open an account or schedule a video conference with one of our Christian advisors to learn more today.
This report is a publication of Demand Wealth. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author as of the date of publication and are subject to change.