James Investment Research has launched the James Biblically Responsible Investment ETF (JBRI US) on Cboe ETF Marketplace, providing multi-factor exposure to US equities that are aligned with biblical values. The launch marks the firm’s debut in the ETF provider space.
The fund’s index screens out stocks considered objectionable from a biblical perspective.
“JBRI is designed for investors who want to show their faith in myriad aspects of their lives, including their investment portfolios,” said Matt Watson, portfolio manager at James Investment Research. “With our time-tested investment strategies, investors now have the opportunity to invest with biblical principles while seeking attractive returns.”
The fund tracks the eVALUEator Biblically Responsible Index which uses the S-Network US Equity Large/Mid-Cap 1000 Index as its parent universe. The methodology initially screens out stocks involved in any of seven different business activities considered objectionable from a biblical perspective: abortion, pornography, alcohol, tobacco, gambling, alternative lifestyle facilitation, and anti-family entertainment.
The process then moves on to selecting 100 stocks from remaining constituents based on company valuation, profitability and price momentum, using a total of 30 variables to ascertain a stock’s alignment with these three factors. Holdings are equally weighted and are reconstituted and rebalanced quarterly.
As of 20 December 2017, JBRI is primarily exposed to the industrial (18.9%), information technology (16.4%), healthcare (15.3%), consumer discretionary (10.3%), and energy (11.8%) sectors.
The ETF is offered with a total expense ratio of 0.65%.
According to James Investment Research, the fund may be used to replicate an investor’s US equities exposure within their total portfolio – the fund currently features approximately 57% exposure to large-caps and 43% to mid-cap equities. Its beta versus the S&P 500 Index is 0.80.
Alternatively, JBRI may serve as an ESG or smart beta sleeve for US equity exposure.