It is a passive ETF that tracks an index of US high-dividend stocks that meet the manager's faith-based values criteria. It excludes companies that conflict with those values and diversifies across companies with high dividend yields.

It suits income-oriented investors who want to reflect faith-based values criteria while pursuing high-dividend distribution income.

This ETF is managed by Timothy Plan using a passive (index-tracking) approach.

The ETF tracks an index that excludes companies conflicting with the manager's faith-based values criteria and then selects and holds US companies with high dividend yields. By reflecting values criteria while diversifying across high-dividend stocks, it is structured to pursue distribution income and faith-based investing together.

• Screening based on faith-based values criteria
• Pursuit of high-dividend distributions

Assets under management (AUM) stand at $394.6M, and the total expense ratio is 0.52% per year.

The main point of comparison is its faith-based screening criteria versus general high-dividend ETFs that invest in high dividends without values criteria.

High-dividend stocks see their performance diverge with interest rates and the economic cycle. They tend to show strength when rates fall and dividend appeal stands out, and relative weakness when investors favor growth stocks. Because of values-based screening, the holdings and performance may differ in part from general high-dividend indexes.

Fund flows into and out of high-dividend stocks vary with dividend demand and the interest rate environment, and money sometimes shifts into related product groups when interest in faith-based and values investing rises. It is also worth noting that performance varies with interest rates and style rotation.

Its strengths are faith-based screening and high-dividend exposure, while relative weakness against growth stocks, concentration resulting from exclusions, and tracking differences are points to consider.

For those who want to focus on quality high-dividend stocks without values criteria, direct substitutes include HDV, and for a focus on companies with long dividend track records, products such as DVY are also worth comparing. Those who want broad large-cap value exposure can also consider products such as VTV. The three products shown in the table, VYM, SCHD and VIG, differ in that they are run on high-dividend and dividend-growth strategies without faith-based screening. This ETF's differentiator is its high-dividend selection that reflects faith-based values criteria.

Here are the points to review before investing in TPHD. Faith-based screening and high-dividend exposure are attractive, but relative weakness against growth stocks, sector concentration, and tracking differences should be checked in advance. It is also a good idea to compare it with general high-dividend products.

Relative weakness when growth stocks are in favor, sector concentration from values-based exclusions, and tracking differences are the main variables for long-term performance, and faith-based screening can make the holdings differ from general high-dividend indexes. Even with a high-dividend focus, losses can occur during market crashes.

It is a suitable candidate for income-oriented investors who want to reflect faith-based values criteria while pursuing high-dividend distributions. For high-dividend investing without values criteria, it is advisable to compare products such as HDV and DVY, and if you want faith-based high-dividend exposure, to weigh this product alongside them before choosing.