A niche corner of the ETF and mutual fund market is gaining momentum, drawing the attention of RIAs and wealth advisors as faith-based investing experiences a notable resurgence. The recent rise is driven by investors seeking alignment with Christian and Catholic values, avoiding exposure to companies involved in abortion, tobacco, gambling, or other industries seen as misaligned with their beliefs.
While still a relatively small portion of the broader ETF space, faith-based funds have quietly swelled to over $130 billion in value, according to research from Brightlight, a faith-based investment advisory firm. Brightlight reports that assets in these funds reached $100 billion for the first time in mid-2024—a 14% increase over a 15-month span.
Advisors catering to values-driven clients are seeing a sharp uptick in demand. Brightlight notes its investment screening services—designed to filter portfolios based on religious principles—have doubled in usage since 2023. Inspire, which brands itself as the world’s largest provider of faith-based ETFs, is also experiencing strong growth. The firm reached $3 billion in AUM last year, with $1 billion of that gained in just 18 months leading up to September.
Inspire CEO Robert Netzly attributes the momentum to what he calls a growing awakening among religious investors.
“Clients are realizing they’ve been unknowingly supporting companies that conflict with their values—industries linked to abortion, human trafficking, and more,” Netzly says. “They want their investments to reflect their faith.”
Guidestone, another major player in the space, has also seen a 46% increase in assets over the last three years, now managing $22.5 billion, according to company statements.
Though funds exist for a range of religious backgrounds, Christian and Catholic investors make up the majority, according to Netzly and Tim Macready, Brightlight’s head of global advisory. The investment approach typically avoids companies that conflict with religious beliefs and instead favors those aligned with values like family, community, and ethical business practices.
Popular allocations often include real estate, which is seen as supporting community development—something clients view as congruent with their faith. Conversely, portfolios tend to screen out companies involved in abortion services, alcohol production, gambling, pornography, and child labor, Macready notes.
These strict screens can limit exposure to high-growth sectors. For example, Inspire’s flagship ETF, the Inspire 100 (BIBL), excludes the Magnificent Seven tech giants. While that exclusion hurt returns during last year’s tech rally, the fund has outperformed the broader market in early 2025. As of late March, BIBL is down about 1% year-to-date, compared to a 3.8% drop in the S&P 500—benefiting from its avoidance of mega-cap tech’s recent decline.
Still, for faith-based investors, performance isn’t the sole priority. According to Netzly, the goal is alignment with their values above market returns.
“This is a movement. Our clients want their portfolios to reflect their convictions. If we can eat and drink to the glory of God, surely we can invest that way too,” he says.
Wealth advisors are taking note. As clients grow more engaged with how their money is used, RIAs are fielding more questions about faith-based investing options and demand for customized, values-aligned portfolios is rising.
Politics also plays a role in this growing interest. Many investors point to the Trump era as a catalyst. Phillip Dickson, CEO of Monorail—a platform offering values-based investment options—says clients became notably more optimistic about faith-based investing following Trump’s election wins.
“People of faith were energized,” says Dickson. “There’s a sense that policy is more supportive of their worldview, and that’s translating into investment decisions.”
Trump’s policies drew strong support from Christian and evangelical voters, a demographic that overlaps significantly with the faith-based investing community. In 2020, Trump identified as a nondenominational Christian and consistently attracted wide backing from white evangelical Protestants.
Macready believes the political climate has emboldened faith-driven investors. “There’s a greater willingness to speak out and act on conservative social values,” he says. “That’s influencing where people want their money.”
Netzly echoes this view, stating that many of Inspire’s clients support Trump, not necessarily for his personal beliefs, but for the policies they see as aligning with their values.
“His administration promoted policies that faith-based investors found favorable,” Netzly says. “And those policy shifts are beginning to show up in returns, particularly for companies we invest in.”
For RIAs, the takeaway is clear: client interest in faith-aligned investing is growing, and it’s not limited to performance alone. Advisors who understand the nuances of these strategies—and who can help clients align financial plans with spiritual values—stand to build deeper, values-based relationships with a committed investor base.
