Faith & Finance - The Rise of Faith-Based ETFs with Mike Schnackenberg

What if investing could be about more than performance? What if it could also be about purpose? For many believers, stewardship does not stop with earning, giving, saving, or spending. It also includes asking whether the companies we invest in reflect the values we profess. And as more Christians think carefully about their portfolios, faith-based investing tools are making that conversation more practical than ever. Mike Schnackenberg, Head of Distribution at Eventide Asset Management, joins the show today to discuss the rise of faith-based ETFs and how investors can align their portfolios with their convictions while honoring God and serving the common good. What Is an ETF? ETF stands for exchange-traded fund. Simply put, an ETF is an investment vehicle that can hold multiple stocks or bonds under one ticker symbol. That gives investors a convenient way to diversify. Instead of purchasing shares of dozens—or even hundreds—of individual companies, an investor can gain exposure to many holdings through a single investment. ETFs also trade on exchanges like stocks, which means they can be bought and sold throughout the trading day. Many also provide transparency, giving investors visibility into the companies or holdings inside the fund. For years, many people associated ETFs mainly with passive investing—funds that simply track a broad market index. But that has been changing. More active strategies are now being offered through ETFs as well, partly because of the accessibility, transparency, and tax efficiency the structure can provide. Is Passive Investing Really Neutral? One of the most important questions for Christian investors is whether passive investing is truly neutral. At first glance, it may seem that way. If an investor is simply tracking an index, it can feel like they are not making an active ethical choice. But from a biblical stewardship perspective, every investment decision carries moral weight because investing involves ownership. Even if someone owns only a small percentage of a large company, that investor still has a connection to the company’s products, practices, profits, and impact. If we benefit from a company’s success, then it is worth asking whether that success comes through work that contributes to human flourishing—or work that harms our neighbors. That is why faith-based investing begins with a deeper question: What kind of impact do I want my investments to have? Investing Is Ownership For believers, stewardship is not limited to giving, budgeting, or avoiding debt. It also includes investing. If God owns everything, then the money we invest is also entrusted to us by Him. That means our portfolios should not be disconnected from our discipleship. A broad market index may include companies involved in industries or practices many Christians would find troubling—areas connected to addiction, exploitation, the destruction of life, or other harms to human flourishing. Faith-based investing seeks to avoid those problematic areas while also identifying companies whose products and practices serve people well. The goal is not merely to avoid what is harmful. It is also to pursue what is good. The Awareness Gap One of the biggest challenges is that many Christians simply do not know that faith-based investing options are available. They may assume their only choices are traditional index funds, mutual funds, or ETFs that make no distinction between companies based on values or business practices. But the faith-based investing space has grown, giving investors more opportunities to pursue financial goals while also seeking values alignment. For many believers, the first step is simply awareness: learning what they currently own and understanding what companie