Inspire 100 ETF (BIBL)

The emergence of values-based equity investing

Values-based investing — selecting stocks on the basis of ethical, religious, or social principles rather than financial metrics alone — has roots stretching back decades. Religious institutions, socially conscious pension funds, and individuals seeking to align their portfolios with their beliefs have long screened for or against certain industries and practices. What was once a niche approach has grown into a measurable market segment as retail investors, younger cohorts, and institutions have increasingly demanded funds that reflect their values.

Inspire was founded on this premise: to offer transparent, rules-based, values-driven equity funds that screen for what investors consider harmful or unethical. The firm’s flagship offering is the Inspire 100 ETF, which selects 100 large-cap U.S. stocks by financial quality while explicitly excluding companies involved in industries or practices deemed inconsistent with biblical or Christian values — a specific moral framework that the fund communicates directly to investors.

The screening criteria

BIBL begins with the large-cap U.S. equity universe and applies a systematic exclusion filter. The fund screens out companies involved in tobacco manufacturing and sales, alcoholic beverages, gambling, weapons and military contracting, adult entertainment, and related sectors. Additionally, the fund excludes companies with material involvement in abortion services or that the fund’s methodology deems to operate in violation of human-rights or labor principles.

After these exclusions, the fund applies a financial quality screen to the remaining universe, selecting the 100 largest and most profitable companies. The result is a subset of the S&P 500 that is values-filtered rather than a pure equal-weight or market-cap-weight representation of the broad market.

Portfolio composition and bias

Because BIBL excludes entire sectors — tobacco, beverages, gaming — the fund’s composition necessarily deviates from a standard large-cap index. Technology, healthcare, consumer staples, and industrials typically represent meaningful portions of the portfolio. The fund’s exclusions mean it underweights or eliminates some legacy components of the large-cap universe, which can create tracking differences against the broad market in periods when those excluded sectors outperform or underperform.

The fund’s financial-quality screen introduces a bias toward profitable, well-run companies with lower debt and stronger return on equity. This can tilt the portfolio toward quality-factor characteristics, which may outperform or lag depending on the market cycle.

Performance in a diversified portfolio

Values-based investing inherently involves a trade-off: screening out entire industries reduces diversification and can drag returns in periods when those industries rally. Tobacco companies, for instance, have historically been profitable and paid reliable dividends, and excluding them means missing that exposure. On the other hand, the quality bias and exclusion of controversial sectors may improve risk-adjusted returns during market stress or periods of regulatory pressure.

Investors should expect BIBL’s performance to diverge from the S&P 500 in both positive and negative directions depending on which sectors are driving market returns. In years when excluded sectors lead the market, BIBL will lag; in years when included sectors and quality factors drive performance, BIBL may outperform.

Expense ratio and transparency

BIBL’s expense ratio is competitive with other large-cap equity ETFs, reflecting passive index tracking and low turnover. A key advantage of Inspire’s approach is transparency: the fund publishes its full holdings and screening methodology, so investors can verify which companies are included or excluded and why. This transparency contrasts with some competitor funds that apply values screens but do not disclose them fully.

Who the fund is designed for

BIBL appeals to investors who view stock ownership as an extension of personal or religious values and who want their portfolio to reflect those principles. Christian investors, conservative religious organizations, and socially minded individuals seeking to avoid controversial industries find value in an explicit values filter. The fund also suits investors who believe that values-conscious companies outperform over time or that quality factors embedded in the exclusion criteria provide better risk-adjusted returns.

Investors focused purely on maximizing returns should note that values-based screens, by definition, accept the possibility of underperformance in exchange for alignment with stated principles. This is not a performance-maximizing strategy; it is a values-maximizing strategy with expected financial trade-offs.

Tracking error and measurement

Because BIBL is not a pure market-cap-weighted large-cap fund, it will diverge from indices like the S&P 500. This tracking error — the difference between the fund’s return and its benchmark — is partly by design. Investors should measure BIBL against other values-based funds or accept that periodic underperformance relative to a full-market index is the price of their screening criteria.

How to research and evaluate the fund

Review Inspire’s methodology document to understand the specific screening criteria and how the fund categorizes companies as acceptable or excluded. Examine the fund’s full holdings list to see which companies are included and which major corporations are missing due to screening. Compare BIBL’s historical performance and volatility against both the S&P 500 and competing values-based equity funds. Evaluate the expense ratio and trading liquidity to ensure cost-effectiveness for your position size.

Consider your time horizon and return expectations: values-based investing is about alignment, not necessarily about outperformance. A long-term holder whose primary goal is alignment with personal beliefs and who can tolerate periodic underperformance relative to the broad market will find BIBL useful. An investor whose primary goal is maximum returns should weigh the values-screen benefit against historical periods of underperformance when excluded sectors dominated.