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- Title
Catholic Values and Direct Indexing: No Performance Penance Needed.
- Authors
Shibly, Rafika; Subkoviak, Andrew; Bouchey, Paul
- Abstract
In this article, we demonstrate that Catholic investors are able to own a market-like portfolio that is well aligned with their faith. We examine the MSCI USA Catholic Values Index and the S&P 500 Catholic Values Index. We show that the performance from 1998 to 2021 was largely in line with the base index, with some outperformance observed in the recent 10-year period. We highlight a direct indexing method for reducing performance variations observed in the standard Catholic values indices. Using less restrictive screens and optimization methods, we create a portfolio with reduced tracking error relative to the target index. We also discuss applications to global markets, taxable investors, and the issue of active ownership.
- Publication
Journal of Beta Investment Strategies, 2022, Vol 13, Issue 2, p117
- ISSN
2771-6511
- Publication type
Academic Journal
- DOI
10.3905/jbis.2022.1.006