May 12, 2021
ORLANDO, Fla.— On May 1, 2019, Timothy Partners, Ltd., advisor to Timothy Plan funds, launched the first smart-beta, biblically responsible ETFs in the market. Looking back at two years, fund leadership is pleased by nearly all metrics of success.
“We had been a mutual fund company for 25 years, so I was naturally skeptical of the demand for ETFs in the Biblically Responsible Investing space,” said Art Ally, president and founder of Timothy Plan. “However, providing more options for investors who desire to align their investments with their values will never be a bad thing. That skepticism has since been replaced with optimism, as our first ETFs have grown to over $300M in assets under management in just 24 months.”
“For many people, the idea of screening out large and profitable companies connotes a reduction in performance,” Ally said. “While Timothy Plan will always prioritize the values of our shareholders over performance, and never own companies that violate our biblical filters, performance still matters. The track record over the first two years should help reframe the inaccurate narrative that filtering always results in a significant reduction in performance.”
TPLC (Timothy Plan Large/Mid Cap Core ETF) and TPHD (Timothy Plan High Dividend ETF) have kept pace with their respective indexes over that timeframe, all while adhering to the rigorous, uncompromising biblical filtering philosophy that is synonymous with Timothy Plan funds. Clearly, the messaging from Timothy Partners seems to be working, as the asset level in the ETFs continues to increase.
“Telling the story of the methodology is crucial to new flows into the ETFs,” said David Moore, senior ETF strategist and one of the original patent holders of the volatility-weighting methodology employed by Timothy Plan ETFs. “It really should not be surprising that a methodology that filters out companies that engage in activities that run contrary to human decency would do well. If an ETF is weighted by volatility, composed of companies that are profitable and not engaged in questionable activities, history and logic would seem to indicate that such a product would do well.”
Financial advisors and individual investors would appear to agree with Mr. Moore’s assessment. The rate of growth for the ETFs would be remarkable for any investment company, let alone an investment company focused on distributing products targeted at ethically conscious investors.
“Two years is not a huge track record, but the public’s excitement about these investment choices makes us confident that honoring God is an important factor for many investors,” Mr. Ally concluded.
When investing, you should consider the fund’s investment objectives, risks, charges and expenses. This and other important information can be found in the fund’s prospectus. To obtain a copy, visit timothyplan.com or call 800.846.7526. Read each prospectus carefully before investing or sending money.
To read more about Timothy Plan and access fund information, including the prospectus, fact sheets, performance, and holdings for each fund, go online: mutual funds at mutualfund.timothyplan.com and ETFs at etf.timothyplan.com. Mutual Funds distributed by Timothy Partners, Ltd., member FINRA. ETFs distributed by Foreside Fund Services, LLC, member FINRA & SIPC. Timothy Partners, Ltd. is not affiliated with Foreside Fund Services, LLC.
To interview Timothy Plan founder and president Art Ally, contact Hamilton Strategies, Media@HamiltonStrategies.com, Beth Harrison, 610.584.1096, ext. 105 or Deborah Hamilton, ext. 102.