New Exchange-Traded Funds Will Further Help the Faithful Honor God with Their Money; Timothy Plan Now at 12 Mutual Funds and 6 ETFs
July 29, 2021
ORLANDO, Fla.—Timothy Partners, LTD., advisor to the Timothy Plan family of funds, announced today the launch of two additional Exchange-Traded Funds (ETFs). The new products are yet another sign that Timothy Plan remains the pioneer of Biblically Responsible Investing. The firm continues to provide Christian and ethically conscious investors with investment vehicles that embrace modern technology and strategy, without compromising the highest standards for ethical filtering.
Timothy Plan US Large/Mid Cap Core Enhanced ETF (TPLE) and Timothy Plan High Dividend Stock Enhanced ETF (TPHE), are mirrors of two existing Timothy Plan ETFs (TPLC and TPHD), with the added layer of a tactical strategy that strives to mitigate market risks during significant market downturns. Adding a tactical layer to two of our most popular, affordable and tax-efficient ETFs1 is just another way to meet investor demand and provide greater diversity, explains Timothy Plan President Art Ally.
“The introduction of these two new ETFs brings Timothy Plan’s total family of funds to 12 mutual funds and six ETFs,” Ally says. “While I can only speak for our fund family, I do believe we are unique in that many of our shareholders actually engage with our home office. They embrace what we do with their money AND their hearts. They want to hear about the progress and impact of the mission, and they want to see us continue to be a leader in meeting the developing needs of the modern investor. We always strive to listen to those who support us, and we are excited to again partner with Victory Capital to launch these two additional Timothy Plan ETFs.”
Like their parent ETFs, TPLE and TPHE employ a smart-beta strategy that seeks to reduce risk while exploiting inefficiencies of traditional market indexing to generate competitive returns. The difference in the enhanced strategy, commonly referred to as a “long cash strategy” by the ETF sub-advisor Victory Capital Management, Inc., is a tactical overlay that strives to add an additional layer of risk mitigation for investors during periods of significant market downturn. Following, and not deviating from, a published investment/divestment rubric, the ETFs shift from stocks to cash equivalents during periods of significant market declines and reinvest when market prices have declined or rebounded to defined watermarks based on market price history. What may sound like a complicated concept is really a simple strategy to carry out, thanks to the efficiency of modern investment vehicles and technology, according to Ally.
“I’ve been in the industry for nearly 50 years,” Ally says. “We used to review a myriad of charts and historical data points in an attempt to determine when we should move out of the markets and into cash for our more risk-averse investors. Now, we can structure an ETF to do that automatically. The research team at Victory has made their determination of what market exit and reentry triggers have been historically most detrimental to investors if ignored. By following the fixed, rules-based algorithm they have created, we can provide transparent consistency for investors and advisors. Because these rules-based movements from equities to cash and back happen automatically and within an ETF, it mitigates emotional buys and sells, AND it doesn’t trigger a taxable event as long as the money remains in the ETF.”
The pioneer of Biblically Responsible Investing, Timothy Plan helps advisors and investors achieve their financial goals without compromising their most deeply held passions and beliefs—not only to benefit the investor but the broader culture. Timothy Plan is firmly committed to operating with the integrity, excellence and wisdom that brings honor and glory to Jesus and is a beacon for godly stewardship in the financial community. While Timothy Plan’s primary mission is to empower Christian advisors and investors, anyone concerned about profiting off the suffering and/or the marginalization of others can find a competitive investment with Timothy Plan funds.
Based on the growth of their first four ETFs, Timothy Partners, LTD anticipates a large volume of information requests for the enhanced, or long cash, ETFs. Because a new component of investment strategy is being introduced, advisors and investors are encouraged to call the home office directly and speak with a licensed professional for a deeper explanation on this exciting strategy and where to invest.
1 ETFs use creation units which allow for the purchase and sale of assets in the fund collectively. Consequently, ETFs usually generate fewer capital gain distributions overall, which can make them somewhat more tax-efficient than mutual funds.
Timothy Plan ETFs are distributed by Foreside Fund Services, LLC., member FINRA and SIPC. Timothy Partners, Ltd. (investment advisor to the ETFs), Victory Capital Management Inc. (sub-advisor to the ETFs) and Foreside Fund Services, LLC (distributor of the ETFs), are not affiliated. Timothy Plan mutual funds are distributed by Timothy Partners, Ltd., member FINRA.
To interview Timothy Plan founder and president Art Ally, contact Media@HamiltonStrategies.com, Beth Harrison, 610.584.1096, ext. 105, or Deborah Hamilton, ext. 102.
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS AND YOU MAY LOSE MONEY.
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 the prospectus carefully before investing or sending money. Mutual Funds distributed by Timothy Partners, Ltd., member FINRA. ETFs distributed by Foreside Fund Services, LLC, MEMBER FINRA and SIPC. Timothy Partners, Ltd. is not affiliated with Foreside Fund Services, LLC.
Excluded Security Risk: Because the Funds do not invest in Excluded Securities, the Funds may be riskier than other funds that invest in a broader array of securities. Biblically Responsible Investing (BRI) may not be successful. Because each Fund’s respective index is reconstituted only at prescribed times during the year, a Fund may temporarily hold securities that do not comply with the BRI filtering criteria if the application of the criteria is changed in between these dates.
Because an Index’s allocation to cash versus securities is determined at month-end, there is risk that the respective index, and thus the Funds’, will not react to changes in market conditions that occur between reallocations. The Funds’ will incur transaction costs and potentially adverse tax consequences in the event the Index allocates to cash. There is no guarantee that the Indices’ prescribed defensive strategy, if employed, will be successful in minimizing downside market risk.
Risks specific to TPLE
The securities of large and mid cap companies may underperform the securities of smaller cap companies or the market as a whole. Larger, more established companies may not respond as quickly to competitive challenges (such as changes in technology and consumer tastes) and their growth rate may lag those of those of smaller companies, especially during periods of economic expansion.
Risks specific to TPHE
The Fund’s high dividend strategy may not be successful. Dividend paying stocks may fall out of favor relative to the overall market. The securities of large capitalization companies may underperform the securities of smaller capitalization companies or the market as a whole. The growth rate of larger, more established companies may lag those of smaller companies, especially during periods of economic expansion.