VATICAN CITY — In a bold move to align investment opportunities with Catholic values, the Vatican Bank has unveiled two new stock indexes aimed at both the U.S. and European markets. These indexes, developed in collaboration with Morningstar Indexes, seek to provide investors with a means of supporting companies that adhere to principles rooted in Catholic Social Teaching.

The Morningstar IOR U.S. Catholic Principles Index and the Morningstar IOR Eurozone Catholic Principles Index are designed to offer a framework for those looking to invest ethically while achieving potential financial returns. The Vatican Bank stated that these indexes are constructed in line with best practices in the investment world and are intended to serve as benchmarks for Catholic investors across the globe.

While specific criteria for stock selection were not disclosed, all included companies are sourced from the Morningstar U.S. Large-Mid Index and the Morningstar Eurozone Large-Mid Index. The lack of transparency concerning the selection criteria has raised questions among some investors about the robustness of the ethical guidelines employed.

Backtesting data reveals promising performance for these portfolios over the past decade. The U.S. index has recorded an average annual return of 18%, while the Eurozone index boasts a 10.2% return over the same period. Both indexes feature a diverse range of stocks, each representing a fundamental building block for the sustainable investment effort.

For the U.S. index, the top ten holdings comprise industry giants such as Meta at 5.31%, Amazon at 5.22%, and Nvidia at 5.09%. Other notable companies include Tesla, Apple, and JPMorgan, each demonstrating the potential for growth while aligning with ethical investment strategies.

In Europe, the top holdings include ASML at 6.16%, Deutsche Telekom at 5.07%, and SAP at 3.96%. The presence of established corporations like Banco Santander and Allianz underscores the diverse nature of the investments that adhere to Catholic values.

The introduction of these indexes aligns with a broader trend in faith-based investment strategies. Similar initiatives, such as the Global X S&P 500 Christian Values ETF and the Inspire 100 ETF, have emerged in recent years, indicating a growing interest among investors in aligning their portfolios with personal beliefs and ethics.

As the Vatican positions itself as a leader in socially responsible investment, it invites investors to consider not only financial returns but also the societal impact of their investment choices. This endeavor reflects a commitment to fostering a more ethically sound investment landscape while providing guidance grounded in Catholic traditions.