Wealth Management

Faith-based investing has become an increasingly important niche within sustainable finance, offering investors the opportunity to align their portfolios with Catholic values while still pursuing competitive returns. 

 

Funds such as Allianz Global Investors’ E.T.H.I.C.A. apply the Church’s social doctrine, emphasizing human dignity, social justice, and environmental care, while excluding sectors like abortion, weapons, or adult entertainment. Similarly, Invesco’s MSCI Europe ESG Leaders Catholic Principles ETF provides exposure to European firms that uphold Catholic ethics, combining strict exclusions with best-in-class ESG practices and achieving strong performance alongside transparency and affordability.

 

Investment houses like Tressis also integrate moral and financial discipline, using ethical commissions to ensure portfolios support social welfare, sustainability, and human rights, while excluding harmful industries. 


Finsum: These strategies reflect a growing movement where values-based frameworks coexist with robust investment performance, helping advisors tailor to clients.

Advisors navigating today’s complex markets don’t have to go it alone, active ETFs provide institutional expertise and dynamic portfolio management to help address clients’ fixed income needs. In 2025, active bond ETFs have surged in popularity, with fixed income ETF inflows surpassing $325 billion by mid-October despite ongoing uncertainty around rates, tariffs, and geopolitics. 

 

Vanguard’s Fixed Income Group actively manages portfolios across sectors and durations, offering flexibility for goals like yield enhancement, core exposure, or risk management. The firm’s lineup now includes nine active fixed income ETFs, such as the Core Bond ETF (VCRB), Core-Plus Bond ETF (VPLS), and municipal options like the Core Tax-Exempt Bond ETF (VCRM) and Short Duration Tax-Exempt Bond ETF (VSDM). 

 

New additions, including the Multi-Sector Income Bond ETF (VGMS) and High-Yield Active ETF (VGHY), expand opportunities for investors seeking income and diversification. 


Finsum: Look for expert management and low expense ratios to help advisors meet clients’ evolving bond-market challenges.

Emerging market (EM) bonds are increasingly attractive as EM governments have shifted from deficits to surpluses, while developed markets (DM) have accumulated debt and fiscal imbalances. EMs maintain stronger fundamentals, including lower government and private debt, greater central bank independence, and higher real policy rates, factors that enhance stability and yield potential. 

 

Unlike DMs, EM policymakers have generally resisted moral hazard, allowing inefficient firms to fail rather than absorbing private risk, preserving long-term financial health. Over the past three decades, EMs have achieved persistent current account surpluses through fiscal discipline, contrasting with DMs’ crisis-prone fiscal dominance and policy coordination.

 

Actively managed EM strategies, such as VanEck’s, have demonstrated resilience through global shocks, reinforcing the case for a strategic EM debt allocation in modern portfolios.


Finsum: With DMs constrained by debt and low yields, EM debt offers compelling diversification benefits, higher returns, and sounder fundamentals.

 

Page 4 of 376

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top