International Investing for Faith-Based Investors with Benjamin Bailey

That principle applies to faith-based investors as well.

If an investor wants biblical values reflected throughout a portfolio, those considerations should not necessarily stop with domestic holdings. Until recently, however, Christian investors have had fewer faith-based choices in the international marketplace.

“People want choices, and people want options,” Bailey says.

The Challenges of Faith-Based Investing Overseas

Applying faith-based investment criteria internationally can be more complicated than doing so in the United States.

Investors need reliable information about companies around the world, including their business activities and practices. Cultural differences, regulatory environments, and varying levels of corporate disclosure can make that research more difficult.

That is why investment managers often rely on global research organizations with experience evaluating companies across countries and industries.

There is another challenge as well: certain markets may contain a higher concentration of companies involved in business activities that conflict with an investor’s faith-based guidelines. Depending on the screening approach being used, that can limit the available investment universe.

These challenges make careful research and a clearly defined investment process especially important.

Expanding Faith-Based Choices With PRXI

The new ETF is designed to address an area where investors have historically had relatively few faith-based options.

Rather than attempting to dramatically outperform a market benchmark through active stock selection, the strategy seeks performance that is generally similar to its benchmark while incorporating Praxis’ faith-based investment criteria.

For investors who want international diversification without moving away from their convictions, that approach provides another potential tool for building a portfolio aligned with their values.

Faithful Stewardship Across the Portfolio

Faith-based investing does not have to stop at the water’s edge.

International diversification may be appropriate for many investors, and the growing number of faith-based investment options means Christians increasingly have opportunities to pursue diversification while remaining attentive to what their investments support.

As with any investment decision, the goal is not simply to choose a product because it carries a faith-based label. Investors should understand the strategy, risks, expenses, diversification benefits, and underlying holdings and consider how each investment fits within their overall financial plan.

Ultimately, investing is another area of stewardship. The resources God provides can be managed with wisdom, intentionality, and a desire to honor Him—not only in how much we earn, but also in how and where we invest.

On Today’s Program, Rob Answers Listener Questions:

• I have a seven-year-old granddaughter and want to start saving for her college education. What’s the best way to invest for that, and can I use my RMD to help fund it?
• My husband and I are 64, retired, debt-free, and have substantial savings, including about $700,000 in TSP. We’ve never worked with a financial planner and are considering a Certified Kingdom Advisor, though none are local. How should we think about managing these assets from here, and where might Roth IRAs fit into the plan?
• We rarely use credit and haven’t needed much of it in decades. Is there any downside to freezing our credit reports?
• We have an investment account whose earnings we give to ministry, and over about five years we’ve given away roughly what we originally invested. Should we keep the principal invested and continue giving the proceeds, or liquidate it and give the full amount now? We also planned to leave it to our children with instructions to give it to ministries after we die—does that make sense?

Resources Mentioned:

• Faithful Steward: FaithFi’s Quarterly Magazine (Become a FaithFi Partner)
• Praxis Investment Management | PRXI
• SavingForCollege.com 
• Charity Navigator | ECFA (Evangelical Council for Financial Accountability)
• National Christian Foundation (NCF)
• Experian | TransUnion | Equifax
• FaithFi Field Guide: How Much Money is Enough? 
• Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob West
• Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor® (CKA)
• FaithFi App