American Conservative Values ETF (ACVF)

The American Conservative Values ETF (ACVF) is an exchange-traded fund that selects U.S.-listed companies aligned with conservative moral and political principles. The fund applies a values-based screen — excluding firms involved in abortion, contraception, or related practices — to a broad U.S. equity index, offering investors an option to own stocks consistent with their convictions.

Values-based investing has deep roots, but its modern form crystallised in the late 20th century when religious and ideological investors began screening out companies whose business practices conflicted with their beliefs. ACVF applies one particular values filter — conservative Christian convictions around life and family — to index investing, much as other funds screen for environmental sustainability, labor practices, or board diversity.

The screening criteria and what is excluded

The fund’s prospectus defines which companies are excluded: firms involved in abortion provision or referral, contraception distribution, embryonic stem-cell research, and related practices that conflict with conservative principles. The screening is applied to large-cap and mid-cap stocks, narrowing the investable universe significantly. Many healthcare companies are excluded; others are excluded based on corporate policies or donations that the fund deems inconsistent with its criteria.

This restrictive screen means ACVF holds a materially different portfolio from a broad U.S. equity index. Sector representation shifts: healthcare is lighter, as many major pharmaceutical and hospital firms are excluded. Valuations may differ if excluded firms trade at particular multiples. And concentration in remaining stocks often increases, since the fund is choosing from a smaller set.

The tension between returns and principles

Every values-based screen carries a risk: by excluding entire firms or sectors, the fund gives up the diversification benefit of owning the entire market. If excluded sectors have strong earnings growth or market momentum, the fund will lag a broad index. If excluded firms happen to be the safest, cheapest, or best-run in their industries, the screen costs performance.

This is not a hidden cost. Investors who choose ACVF are making a deliberate trade: they accept potential underperformance in exchange for owning companies they believe align with their values. Whether that trade is worth it depends on the investor’s personal conviction and time horizon. Some investors view it as a permanent feature of investing according to principle; others see it as a temporary drag that will even out over long periods.

Sector and style implications

Because of the screening, ACVF is overweighted toward sectors and companies untouched by the exclusion criteria — technology, industrials, energy, financial services (excluding some healthcare finance), consumer discretionary (excluding some related firms), and utilities. The fund looks most like a broad-cap U.S. index but with meaningful gaps. That concentration means sector rotations can hit harder: a downturn in the overweighted sectors hurts more than it would in a fully diversified portfolio.

Trading and costs

ACVF holds established, liquid U.S. equities, so the fund trades with tight spreads and decent volume during normal market hours. The expense ratio is comparable to other screened index funds — higher than a bare-bones broad-market index fund but lower than most actively managed funds. The screening is rules-based and disclosed, not requiring discretionary stock-picking.

Who ACVF is for and how to research it

ACVF is designed for conservative investors who prioritize investment principles alignment over maximum diversification or return optimisation. It works well for someone holding ACVF as a core U.S. equity position, accepting the screen’s implications. It is less suitable for someone seeking to minimise risk or maximise historical returns — those investors would gravitate toward a broader index.

To evaluate ACVF, start with the prospectus and the list of excluded companies and sectors. Understand which firms you would have owned in a broad index but cannot own here, and think through whether you are comfortable with that trade. Compare ACVF’s sector weight, valuation ratios, and historical returns against a broad U.S. equity index. Look at the concentration: how much of the fund is held in the top 10 stocks? If the screening is severe, concentration may be uncomfortably high. Finally, consider whether your values alignment is stable — if your principles or convictions change, holding a screened fund becomes less useful.