Faith-Based Firm Led by Bob Doll Adds First ETFs

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Bob Doll’s latest mark on the religious-values firm Crossmark Global Investments is the introduction of two ETFs, the first such products that firm has offered in the wrapper.

Last week, the company launched its Crossmark Large Cap Growth and Large Cap Value ETFs, both of which are copies of strategies in separately managed accounts that Doll, the CEO, added to the company when he started there four years ago. The funds invest in Russell 1000 companies, excluding those involved in alcohol, tobacco, abortions, stem-cell research, adult entertainment or cannabis. The corresponding SMAs have beaten their benchmarks and have pulled in new money, reaching a combined total of about $700 million. But, as Doll said he told his company, “we can be a firm if we don’t have ETFs — but if we really want to thrive we need ETFs.”

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Spreading the Gospel

About two-thirds of Crossmark’s assets are in portfolios with religious values screens, Doll said. “We’re very broad-based. Our goal is to avoid products that are designed to maim or kill people,” he told ETF Upside. The firm could eventually have six to eight ETFs in its lineup, he noted.

While there are more than 40 US ETFs with Christian or Sharia-compliant investment strategies, financial advisors said there is room for more products:

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“The number of religious-specific ETFs is still rather low, resulting in ETFs that are built for a broader client base,” said Omen Quelvog, founder of Formynder Wealth Management. “The difficulty there is the number of holdings that could still cause a conflict.” “Some are solid, but many are too generic and often don’t show clearly what’s inside them. That lack of clarity doesn’t work for values-based families who want more intention behind their investments,” said Daniel Goodman, founder of Good Better Best Financial Planning. “That’s why I often use direct indexing.”

Branches and Denominations: Crossmark and others provide a range of strategies to reflect nuances in faith, though it can be difficult to offer something for everyone. “As a Catholic myself, I appreciate the attempt to create religious ETFs,” said Alvin Carlos, managing partner of District Capital Management. “But I am skeptical about whether one can truly reflect one’s religious beliefs. There are so many angles to consider.”

This post first appeared on The Daily Upside. To receive exclusive news and analysis of the rapidly evolving ETF landscape, built for advisors and capital allocators, subscribe to our free ETF Upside newsletter.

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