Are The New Impact ETFs Pro-Discrimination?

Socially responsible investing has been around for decades. While the results of social investing products has been somewhat mixed, there’s little question that these products fill a niche for certain belief-based investors. There’s definitely a group that wishes to avoid “sin stocks” that deal with gambling, alcohol, weapons, etc. and these products provide these folks with an investing product that aligns with their beliefs.

But different groups, of course, have different beliefs and different levels of acceptance. The presidential election has highlighted how differently the nation’s population feels about hot button issues. In the recent past, we’ve seen companies such as Chick-Fil-A and Hobby Lobby mix business with religion. Some have praised the companies for stick to their guns and managing the businesses in accordance with their religious beliefs while others have criticized their practices as overtly discriminatory.

And therein lies the rub. Where’s the line for running a business according to your own personal beliefs? How do we determine if that line has been crossed? Should there even be a line at all?

Which brings me to the new fund offerings from the Inspire Investing Group – the Inspire Small/Mid Cap Impact ETF (ISMD) and the Inspire Global Hope Large Cap ETF (BLES). The funds are managed with many of the same principles of their socially responsible investing predecessors, but look a little deeper and there’s one policy in particular that’s certain to rub more than a few people the wrong way.

Look at the fact sheets for the funds and you’ll quickly the sense that you’re investing with divine inspiration in mind.