Investing with virtue

Personal Finance | How to be in the world but not of it as we grow our money | David Bahnsen

One of the issues I am most frequently asked to address with Christian clients deals with investments from a moral standpoint. Many wonder if so-called "virtue" funds or "socially responsible" funds provide Christian investors with security that their investments are compatible with their value system.

We must not paint with too broad a brush, as these so-called funds do not all look or function the same. Many "socially responsible" funds simply focus on environmentally friendly companies, and my research has led me to conclude that the vast majority of "socially responsible" funds are simply disguised "green" funds.

Indeed, one of the very tricky parts of this whole subject is defining what is "virtuous" and what is "socially responsible." Many Christians may choose to avoid stocks that deal with alcohol, while the consciences of others would not feel burdened by such an issue. I want to lay out the principle that Paul called "being in the world, not of the world."