CATH - CATH: Dubious Faith-Based ETF With High Fees Sell
2024-07-19 23:43:02 ET
Summary
- The Global X S&P 500 Catholic Values ETF seeks to provide exposure to large-cap companies meeting the Socially Responsible Investment Guidelines for the United States Conference of Catholic Bishops.
- While the Guidelines permit taking a minimal position in "mixed investments", CATH outright excludes stocks based on values relating to abortion, contraception, casinos, tobacco, and child labor, among others.
- This may be acceptable to faith-based investors, but CATH seems to pick and choose when the exclusion criteria apply. Even today, it holds CVS Health, McKesson, and Altria Group.
- Previous holdings include Amazon, Coca-Cola, and Las Vegas Sands, the latter of which certainly violates the Guidelines on gambling.
- My recommendation is to save the 0.29% expense ratio and just hold an S&P 500 Index ETF. Alternatively, if abortion and contraception are important issues to you, SPXV is available at a fraction of the cost.