Performance With A Mission: Praxis Enters ETF Arena With Values-Focused Funds

With investors seeking performance plus at a time when more is expected, Praxis Investment Management joined the ETF market with a two-fund launch that aims to provide performance and purpose.

The company, which has a faith-based investing model, introduced its first-ever ETFs on Tuesday—Praxis Impact Large Cap Growth ETF PRXG and Praxis Impact Large Cap Value ETF PRXV. The initial public offerings come as Praxis makes its long-standing values-based approach available in a tax-efficient, liquid format.

This action isn’t merely about growth—it’s a tactical shift to active ETFs, which are gaining traction as markets become more volatile and investors search for more focused, managed exposure. PRXG and PRXV are both actively managed, rely on investment strategies dating back decades employed in Praxis’s mutual funds, and have an expense ratio of 0.36%.

Chad Horning, president of Praxis Funds, said investors increasingly want to align their portfolios with their values and want financial advisors to help guide those conversations.

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Growth And Value, With A Conscience

PRXG targets big-cap stocks with high growth, while PRXV tilts toward value—something that’s gaining renewed attraction in the face of rate and inflation uncertainty. But what really differentiates these funds is not their asset class—it’s their ImpactX framework.

Praxis uses faith-based screens to exclude firms that are out of sync with its mission. That involves a close examination of issues such as sustainability, community investing, ethical business and corporate engagement. The funds also seek to replicate the CRSP US Large Cap Growth and Value Indexes, with optimization methods to maintain performance in balance while remaining committed to the mission.

The company’s Growth Index Fund (MMDEX) and Value Index Fund (MVIIX) have traditionally been for buy-and-hold investors who value stewardship as much as returns. However, PRXG and PRXV now make it possible to tap into the same thinking more efficiently and transparently.

The money is marketed as “core allocations” in investment portfolios—steady, long-term positions with a values-first orientation. Whether or not they’ll appeal to both religious investors and performance seekers remains to be seen, but Praxis is obviously on a mission to close the gap between conviction and capital.

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