Timothy Doubles Size Of Biblically Responsible ETF Lineup With 2 New Funds

Timothy Plan, the company behind 14 faith-based mutual funds, doubled the size of its biblically responsible investing (BRI) exchange traded funds lineup with the addition of two funds.

What Happened

On Monday, the issuer unveiled the Timothy Plan U.S. Small Cap Core ETF TPSC and the Timothy Plan International ETF TPIF.

“To continue our mission of providing Christians with relevant investment products that do not compromise their values, we are excited to again partner with Victory Capital to launch these two additional Timothy Plan ETFs,” Timothy Plan founder Art Ally said in a statement. “This exciting news will help us to further glorify God by striving for excellence in all that we do.”

Victory Capital has its own extensive lineup of ETFs, many of which focus on high dividend and low volatility strategies. That company has $5.12 billion in ETF assets under management.

Why It's Important

The Timothy Plan U.S. Small Cap Core ETF is designed to be a faith-based alternative to traditional small-cap funds. TPSC tracks a volatility-weighted benchmark issued by Victory Capital that can mitigate some of the turbulence associated with smaller stocks.

“A volatility weighted index assigns percentage values to each security in the Index based on the volatility of that security in the market. More volatile stocks have a lower weighting, and less volatile stocks are assigned a higher weighting,” according to Timothy Plan.

The Timothy Plan International ETF is the first ex-U.S. ETF in the Timothy Plan lineup. Like its small-cap counterpart, TPIF follows a volatility-weighted benchmark and avoids adult entertainment, alcohol, gambling and tobacco companies.

Both new ETFs rank companies based on the issuer's eVALUEator proprietary screening criteria.

What's Next

“Timothy Plan's ETF methodology sets its funds apart from the rest,” according to the issuer. “Strategic beta seeks to capture exposure to certain factors and exploit market inefficiencies in an attempt to deliver specific and/or better risk-adjusted outcomes, while striving to return the benefits of passive investing.”

The firm's first two ETFs, the U.S. Large Cap Core ETF TPLC and the High Dividend Stock ETF TPHD, have about $175 million in assets combined, but Timothy Plan manages over $1 billion in assets.

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