Not Enough Believers: Faith-Based ETF Folds Amid Industry Purge

Faith Investor Services LLC intends to liquidate the FIS Knights of Columbus Global Belief ETF KOCG, a faith-based ETF that attempted to match investments with Catholic principles.

The action is the latest to affect smaller and thematic ETFs in a highly competitive environment.

• Last day for orders: July 11, 2025
• Last trading day on NYSE Arca: July 18, 2025
• Liquidation distributions anticipated: On or around July 18, 2025

Investors who remain invested in KOCG shares by the close on July 18 will be paid a cash distribution equal to the fund’s net asset value (NAV), including any last capital gains and dividend distributions. The NAV, though, will be slightly lower to pay liquidation expenses. After all distributions are made, the fund will discontinue.

Founded to provide an investment product that aligns with Catholicism and international exposure, KOCG was unable to acquire significant assets or trading volume. Its shutdown illustrates the bitter pill for values-based, niche funds, where mission is frequently superseded by scale, liquidity, and cost savings.

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Industry-Wide Wave Of ETF Shutdowns

This shutdown is part of a larger trend. Large asset managers have also been shutting down underperforming and thematic ETFs as investor interest dwindles:

• BlackRock has closed eight ETFs and six mutual funds, three of which were ESG-themed ETFs, with a combined total of around $109 million in assets.
• Goldman Sachs closed two thematic ETFs on June 18: the Future Consumer Equity ETF GBUY and the Future Planet Equity ETF GSFP. Combined, they had around $29.7 million in assets.
• VanEck, earlier in June, also shut down its Green Infrastructure ETF RNEW and HIP Sustainable Muni ETF due to poor performance and investor demand.

These steps herald a wider pattern of industry consolidation, in which large managers are cutting niche and thematic products that do not provide scale or efficiency. Even with ESG investing still trendy, not all such products bear the test of time, and the expense of being irrelevant.

Bottom Line

The liquidation of KOCG fits into an emerging trend among ETF titans to reconsider product lineups and eliminate tiny, niche funds.

As the market becomes more crowded and fee-conscious, only those with the requisite assets and investor demand will remain.

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