The fund tracks the S&P 500 Catholic Values Index and excludes companies engaged in businesses that conflict with Catholic doctrine, such as abortion, contraception, stem cell research, adult entertainment production and weapons of mass destruction. In this way, it delivers responsible investing that upholds religious beliefs.

It suits investors who want their assets managed according to the ethical standards of the Catholic Church while still sharing in the overall performance of the US large-cap market.

Launched by Global X in 2016, it is a passively managed (index-tracking) ETF.

From the constituents of the S&P 500, the fund filters out companies deemed unsuitable under the guidelines of the U.S. Conference of Catholic Bishops, then builds its portfolio using market-cap weighting. To reduce tracking error against the benchmark index, it keeps its sector weights similar to those of the S&P 500.

• Adheres to the investment guidelines of the U.S. Conference of Catholic Bishops
• Sector-neutral portfolio construction relative to the S&P 500

Assets under management (AUM) stand at $1.3B, and the expense ratio is 0.29% per year.

It shares a screening approach similar to socially responsible investing (ESG), but applies criteria more focused on religious doctrine. While general ESG ETFs such as ESGU or ESGV emphasize the environment and governance, CATH treats Catholic values such as bioethics and peace as its main criteria.

The fund moves very much in line with the S&P 500, though slight performance differences arise depending on whether certain excluded stocks are doing well. Recently, the continued strength of big tech companies has allowed it to take part in the broad rally of the index.

As interest in values-based investing grows, inflows from religious organizations and individual investors have remained steady. When market volatility rises, the character of this money as conviction-driven, long-term capital tends to show clearly.

It is an efficient way to track large-cap market performance while staying true to one's faith, but investors should weigh the risk of stock exclusions from screening and a somewhat higher fee than standard index funds.

ESGU and ESGV, shown in the table, are representative alternatives that apply general ESG criteria, while DSI applies stricter environmental and social standards. If you want a different approach that still respects faith-based values, you could also consider BLES from Inspire or KRMA, another values-based product from Global X. If you want to maximize cost efficiency, VOO, a standard index ETF, could be an option.

Here are the key points to review before investing in CATH. It is important to confirm that your own faith-based values and investment goals match this ETF's management philosophy.

Because of the religious screening, roughly 50 or more companies among the S&P 500 constituents are excluded. Note that over the long term, this could cause the fund to outperform or lag the index.

It is a core holding suited to investors who want to weave their Catholic faith into the investment process. It can be an alternative for those who want to uphold their convictions while still sharing in the fruits of US large-cap growth.