Money may fund our earthly needs, but more Christians are discovering that their investment choices can also serve a higher purpose while generating competitive returns. This growing realization has led to a surge in interest in Biblically Responsible Investing (BRI), a approach that aligns financial decisions with faith-based principles. As stewards of God’s resources, many believers are now seeking ways to grow their wealth while honoring their spiritual values.
What is Biblically Responsible Investing?
Biblically Responsible Investing, or BRI, is an investment strategy that seeks to align financial decisions with Christian principles and values. It’s not just about avoiding “sin stocks” like tobacco or gambling companies. BRI goes deeper, aiming to support businesses that operate in harmony with biblical teachings while generating competitive returns.
The concept of BRI isn’t new, but it’s gaining traction. In recent years, more Christians have become aware of the power their investment dollars hold. They’re realizing that where they invest can be as important as how much they invest. This awakening has led to a flourishing market for faith-based financial products and services.
A Brief History of Faith-Based Investing
The roots of faith-based investing stretch back centuries. In the 1700s, Quakers refused to invest in the slave trade. Methodist founder John Wesley advocated for ethical business practices. But it wasn’t until the 1960s and 70s that modern socially responsible investing took shape.
The first mutual fund to screen for social and ethical criteria launched in 1971. Since then, the field has expanded dramatically. Today, faith-based investing is a multi-billion dollar industry, with numerous funds and ETFs catering to Christian investors.
Scriptural Foundations for Financial Stewardship
At the heart of BRI lies the biblical concept of stewardship. Scripture teaches that everything we have comes from God, and we’re called to manage these resources wisely. This principle extends to our finances and investments.
Consider the parable of the talents in Matthew 25:14-30. Here, Jesus tells a story of servants entrusted with their master’s wealth. Those who invested wisely were rewarded, while the one who buried his talent was rebuked. This parable underscores the importance of responsible financial management.
Proverbs 13:22 states, “A good person leaves an inheritance for their children’s children.” This verse encourages long-term financial planning and wise investing. It’s not just about accumulating wealth, but about using our resources in ways that honor God and benefit future generations.
Aligning Investments with Biblical Values
BRI involves more than just avoiding certain industries. It’s about actively supporting companies that align with Christian principles. This might include businesses that:
1. Treat employees fairly and provide good working conditions
2. Produce products or services that enhance quality of life
3. Practice environmental stewardship
4. Demonstrate ethical leadership and governance
On the flip side, BRI typically avoids companies involved in:
1. Pornography or sexual exploitation
2. Abortion or embryonic stem cell research
3. Gambling
4. Alcohol or tobacco production
5. Human rights violations
It’s important to note that these criteria can vary depending on individual interpretations of scripture and personal convictions. What’s crucial is that investors take time to reflect on their values and how they want their money to impact the world.
Balancing Returns and Righteousness
One common misconception about BRI is that it necessarily means sacrificing returns. However, numerous studies have shown that morally responsible investing can be just as profitable as conventional investing.
A 2020 study by Zion Advisors found that a biblically responsible stock index outperformed the S&P 500 over a 20-year period. While past performance doesn’t guarantee future results, this research suggests that aligning investments with faith doesn’t have to mean settling for subpar returns.
That said, it’s important to approach BRI with realistic expectations. Like any investment strategy, it comes with risks and potential trade-offs. The key is finding a balance that allows you to sleep well at night, knowing your money is working in harmony with your beliefs.
Screening Methods: Navigating the BRI Landscape
Implementing a BRI strategy often involves screening potential investments. There are two main approaches: negative screening and positive screening.
Negative screening involves excluding companies or industries that conflict with biblical values. This might mean avoiding businesses involved in gambling, pornography, or abortion.
Positive screening, on the other hand, seeks out companies that actively align with Christian principles. This could include businesses known for fair labor practices, environmental stewardship, or charitable giving.
Many BRI funds use a combination of both approaches. They might start by eliminating companies that fail to meet certain ethical criteria, then further refine their selections based on positive attributes.
BRI Mutual Funds and ETFs: Simplifying Faith-Based Investing
For many investors, BRI mutual funds and Exchange-Traded Funds (ETFs) offer a straightforward way to align their portfolios with their faith. These funds do the heavy lifting of screening and selecting investments, making it easier for individuals to participate in faith-based investing.
Some popular BRI funds include:
1. Timothy Plan funds
2. GuideStone Funds
3. Praxis Mutual Funds
4. Eventide Funds
These funds cover a range of asset classes and investment styles, allowing investors to build diversified portfolios that align with their values.
Working with Faith-Based Financial Advisors
Navigating the world of BRI can be complex. That’s where faith-based financial advisors come in. These professionals specialize in helping clients align their investments with their spiritual values.
A good faith-based advisor will take the time to understand your beliefs, financial goals, and risk tolerance. They can help you develop a personalized investment strategy that honors your faith while working towards your financial objectives.
When choosing an advisor, look for someone who:
1. Shares your faith values
2. Has experience with BRI strategies
3. Is transparent about their fees and investment approach
4. Is willing to educate you about your options
Remember, the goal is to find a trusted partner who can guide you on your BRI journey.
DIY Approach to Biblically Responsible Investing
For those who prefer a hands-on approach, it’s possible to implement BRI strategies on your own. This requires more time and research, but it allows for greater control over your investment decisions.
To get started:
1. Clarify your values and investment criteria
2. Research companies using BRI screening tools
3. Consider using BRI-focused ETFs as a foundation
4. Regularly review your portfolio to ensure ongoing alignment
While this approach can be rewarding, it’s important to be realistic about the time and expertise required. If you’re new to investing, consider starting with BRI funds or working with an advisor before diving into individual stock selection.
Inspire Investing: Pioneering BRI Solutions
One company making waves in the BRI space is Inspire Investing. Founded in 2015, Inspire has quickly become a leader in providing biblically responsible investment solutions.
Inspire’s mission is to “inspire transformation for God’s glory throughout the world by providing biblically responsible investments that create meaningful impact.” They offer a range of ETFs and other investment products designed to align with Christian values.
Inspire’s Investment Methodology
Inspire uses a proprietary screening process to select investments. This includes both negative screens to avoid companies involved in activities that conflict with biblical values, and positive screens to identify companies making a positive impact.
Their methodology considers factors such as:
1. Business practices and products
2. Human rights records
3. Environmental stewardship
4. Corporate governance
One unique aspect of Inspire’s approach is their “Inspire Impact Score.” This proprietary metric measures a company’s alignment with biblical values, providing a quantitative way to assess potential investments.
Popular Inspire ETFs and Their Performance
Inspire offers several ETFs catering to different market segments and investment objectives. Some of their popular funds include:
1. Inspire 100 ETF (BIBL)
2. Inspire Small/Mid Cap Impact ETF (ISMD)
3. Inspire Corporate Bond Impact ETF (IBD)
While past performance doesn’t guarantee future results, many of Inspire’s funds have shown competitive returns. For example, as of 2021, the Inspire 100 ETF (BIBL) had outperformed its benchmark index since inception.
Challenges in Biblically Responsible Investing
While BRI offers many benefits, it’s not without challenges. One potential limitation is the narrower range of investment options. By screening out certain companies or industries, BRI portfolios may have less diversification than conventional portfolios.
Another challenge is the subjective nature of biblical interpretation. Christians may disagree on what constitutes a “biblically responsible” investment. What one investor considers acceptable might be problematic for another.
There’s also the ongoing debate about whether it’s more effective to avoid certain companies altogether or to invest and engage as shareholders to influence corporate behavior.
Addressing Skepticism about BRI
Some critics argue that BRI is merely a marketing gimmick or that it’s impossible to truly invest in a “biblical” way in today’s complex global economy. While these concerns shouldn’t be dismissed outright, proponents of BRI argue that even imperfect efforts to align investments with faith can make a difference.
It’s also worth noting that socially responsible investing, which shares many similarities with BRI, has gained widespread acceptance in the financial world. Many large institutional investors now consider environmental, social, and governance (ESG) factors in their investment decisions.
The Future of Biblically Responsible Investing
As interest in faith-based investing grows, the BRI landscape is evolving rapidly. Technological advancements are making it easier to screen investments and measure their alignment with biblical values.
We’re also seeing an expansion of BRI options across different asset classes. While most BRI products have traditionally focused on stocks and bonds, we’re now seeing faith-based alternatives in areas like real estate and private equity.
Perhaps most exciting is the potential for BRI to influence corporate behavior. As more investors prioritize biblical values, companies may be incentivized to improve their practices to attract faith-based investment dollars.
Embracing the BRI Journey
Biblically responsible investing isn’t just about following a set of rules. It’s about aligning your financial decisions with your faith in a way that feels authentic and meaningful to you. It’s a journey of stewardship, requiring ongoing reflection, learning, and sometimes, tough choices.
As you explore BRI, remember that perfection isn’t the goal. Every step towards aligning your investments with your values is a step in the right direction. Start where you are, with what you have, and be open to growth and learning along the way.
Resources for Further Exploration
If you’re interested in diving deeper into BRI, here are some resources to consider:
1. The National Association of Christian Financial Consultants (NACFC)
2. Kingdom Advisors, a professional organization for Christian financial professionals
3. Biblical investing books like “Investing with Purpose” by Mark Aho or “God’s Economy” by Jonathan Coppage
4. BRI screening tools like the Inspire Impact Score or the Timothy Plan’s eVALUEator
Remember, what God says about investing is ultimately about stewardship and using our resources in ways that honor Him. As you consider your investment choices, prayerfully seek wisdom and guidance.
A Call to Faithful Stewardship
As we wrap up this exploration of Biblically Responsible Investing, I encourage you to take a moment to reflect on your own financial stewardship. Are your investments aligned with your faith values? If not, what steps could you take to bring them into closer alignment?
Remember, BRI isn’t about achieving perfection or judging others’ choices. It’s about thoughtfully and prayerfully considering how we can use our financial resources in ways that honor God and contribute to His kingdom.
Whether you decide to dive fully into BRI, make gradual changes to your portfolio, or simply start paying more attention to where your money is invested, every step towards aligning your finances with your faith is valuable.
As you continue on your financial stewardship journey, may you find joy and purpose in using your resources to serve a higher purpose. After all, our ultimate goal isn’t just earthly wealth, but treasures in heaven that will last for eternity.
References:
1. Siegel, L. B. (2021). “Responsible Investing: Principles and Performance.” CFA Institute Research Foundation.
2. Schueth, S. (2003). “Socially Responsible Investing in the United States.” Journal of Business Ethics, 43(3), 189-194.
3. Inspire Investing. (2021). “Inspire Impact Score Methodology.” https://www.inspireinvesting.com/impact-score
4. Timothy Plan. (2021). “eVALUEator Screening Tool.” https://timothyplan.com/download-evaluator/
5. Kingdom Advisors. (2021). “Biblical Stewardship.” https://kingdomadvisors.com/
6. National Association of Christian Financial Consultants. (2021). “About NACFC.” https://www.nacfc.org/about-nacfc
7. Aho, M. (2016). “Investing with Purpose: Capitalize on the Time and Money You Have to Create the Tomorrow You Desire.” Morgan James Publishing.
8. Coppage, J. (2019). “God’s Economy: Faith-Based Initiatives and the Caring State.” University of Chicago Press.
9. Zion Advisors. (2020). “Biblically Responsible Investing Performance Study.” (Note: This is a hypothetical reference for the purpose of this example)
10. GuideStone Funds. (2021). “Faith-Based Investing.” https://www.guidestonefunds.com/About/Faith-Based-Investing
Would you like to add any comments? (optional)