Vatican Stock Indices: Ethical Catholic Investing Guide
The Vatican has introduced its inaugural equity indices, offering two options tailored for investors seeking to align their portfolios with the ethical teachings of the Catholic Church.
The Institute for the Works of Religion (IOR), widely recognized as the Vatican Bank and operating within Vatican City under the oversight of cardinals and the Pope, has collaborated with Morningstar to develop these two stock indices—one centered on US-listed companies and the other on Eurozone-based firms.
These indices are meticulously crafted to channel investments into companies that adhere to superior market standards while fully complying with Catholic moral principles, as outlined in an official announcement from the IOR.
According to the IOR, both indices function as vital benchmarks for Catholic-oriented investments across the globe, providing a structured framework for faith-aligned financial decisions.
A Return to ESG Principles?
The Vatican’s freshly launched indices resonate closely with the core concepts of ESG investing, which emphasizes companies that place significant emphasis on environmental sustainability, social responsibility, and robust governance practices.
ESG investing enjoyed immense popularity during the early part of the 2020s. Data from a Morningstar report indicates that it reached its zenith in 2021, with ESG-focused funds attracting a staggering $649.1 billion in new investments that year alone.
However, in recent times, enthusiasm for ESG strategies has noticeably waned. Morningstar’s analysis reveals that inflows into ESG funds have steadily decreased each year since 2021, culminating in 2025 as the first year to record net outflows totaling $84 billion from these funds.
In a bold move against this prevailing trend of retreating from ESG approaches, the IOR’s indices are distinctly branded as being in harmony with Catholic doctrine, potentially revitalizing interest in values-driven investment vehicles.
Performance Potential of the Vatican’s Indices
The IOR’s US-focused index maintains substantial exposure to leading technology giants, complemented by stakes in prominent financial institutions such as Visa and JPMorgan Chase.
Its core objective is to deliver targeted exposure to the 50 largest securities, measured by free float market capitalization, while strictly adhering to investment guidelines rooted in the Social Doctrine of the Catholic Church.
Although officially unveiled in February 2026, it is possible to reconstruct historical performance data for this index.
Details from Morningstar’s factsheet indicate that the index would have delivered an annualized return of 16.89% over the past year and an impressive 17.87% across the preceding decade—figures that surpass Morningstar’s standard benchmark for large and mid-cap US stocks.
The following table highlights the index’s top holdings:
- Meta (Class A): 5.31% portfolio weight, Morningstar ESG Risk Rating 3/5
- Amazon: 5.22%, 4/5
- Nvidia: 5.09%, 4/5
- Tesla: 4.84%, 4/5
- Apple: 4.62%, 4/5
- JPMorgan Chase & Co: 4.27%, 4/5
- Broadcom: 4.09%, 4/5
- Visa (Class A): 3.35%, 4/5
- Micron Technology: 3.01%, 4/5
- Alphabet (Class A): 2.86%, 4/5
Source: Morningstar
The Eurozone index mirrors the investment philosophy and methodology of its US equivalent, targeting similarly sized companies within the region while upholding the same doctrinal standards.
Morningstar’s factsheet reports that this index would have generated an annualized return of 14.11% over the last year and 9.03% over the past ten years for investors.
Nevertheless, these returns trail behind Morningstar’s benchmark performance for large and mid-cap stocks in the Eurozone market.
Key constituents of the Eurozone index include:
- ASML: 6.16% portfolio weight, Morningstar ESG Risk Rating 5/5
- Deutsche Telekom: 5.07%, 4/5
- SAP: 3.96%, 4/5
- Banco Santander: 3.88%, 5/5
- Hermes International: 3.82%, 4/5
- Banco Bilbao Vizcaya Argentaria: 3.8%, 5/5
- Prosus: 3.76%, 4/5
- Vinci: 3.46%, 3/5
- UniCredit: 3.45%, 4/5
- Allianz: 3.43%, 4/5
Source: Morningstar
Other Options for Christian-Aligned Investments
At present, no exchange-traded funds (ETFs) directly track the Vatican’s newly introduced indices, although future product launches tracking them remain a possibility.
For those eager to invest in companies consistent with these indices, one practical approach is to examine the listed holdings and incorporate them into personalized portfolios as guiding selections.
On another note, several ETFs already exist that specialize in companies deemed to operate in line with Christian principles.
One prominent example is the Global X S&P 500 Christian Values ETF, which offers access exclusively to S&P 500 constituents whose operations align with biblical standards, as evaluated by Bountiful Financial’s Christian investment criteria.
Similar to the Vatican indices, this ETF’s leading positions are dominated by major technology companies.
A further choice is the FIS Christian Stock Fund ETF, featuring the symbolic ticker PRAY.
This fund commits at least 80% of its assets to what it terms “biblically responsible investments,” with standout holdings encompassing Nvidia, Samsung, and Taiwan Semiconductor, among others.
These alternatives provide devout investors with diverse avenues to pursue financial growth without compromising their faith-based values, potentially setting the stage for broader adoption of doctrinally screened investment strategies in the years ahead.
