FIS Christian Stock Fund (PRAY)

FIS Christian Stock Fund offers investors the ability to participate in US equity markets while maintaining consistency with Christian ethical teachings. Rather than holding a broad market index, PRAY applies a screening process to identify and exclude companies whose primary business or practices conflict with Christian values as interpreted by the fund’s management, and to favour companies conducting business in accordance with those principles.

The screening process works in two directions. Negatively, the fund excludes entire industries and companies engaged in activities judged incompatible with Christian doctrine. This typically encompasses producers of alcohol and tobacco, gambling operators, entertainment companies focused on adult content, companies involved in abortion services, and others in industries the fund considers problematic. Companies with poor labour practices, environmental violations, or ethical issues may also be excluded.

Positively, PRAY favours companies demonstrating strong governance, transparent dealings, fair treatment of employees, and other characteristics associated with responsible stewardship. The goal is not simply to avoid harm but to actively support businesses the fund’s managers believe operate according to Christian principles.

Holdings and diversification

PRAY holds a diversified portfolio of US large and mid-cap stocks that pass the values screen. The resulting portfolio spans sectors that survive the filtering process—healthcare (excluding abortion-providing entities), consumer goods, industrials, technology, financials, and others. Because the screening process is restrictive, the fund does not hold a representative cross-section of the US market; instead, it concentrates on the subset of companies the screening identifies as values-aligned.

This approach can create sector imbalances. If the fund’s criteria lead it to underweight financials, healthcare, or consumer discretionary sectors more heavily than the overall market, the fund’s performance will diverge from broad indices. Sometimes this divergence benefits returns, sometimes it hurts them, depending on how those over- or under-weighted sectors perform.

The number of holdings depends on how strict the screening is applied. A very restrictive screen yields a smaller portfolio with less diversification; a more inclusive interpretation of Christian values allows a larger portfolio and broader diversification. PRAY’s specific approach to drawing this line determines its holdings count and composition.

Returns and costs

PRAY’s returns depend on how well the screened portfolio performs relative to the overall market. In periods where values-aligned companies outperform the excluded set, the fund outperforms. In periods where the excluded companies (such as tobacco or alcohol producers) deliver strong returns, PRAY lags. The fund has no inherent structural advantage over the market; its returns reflect whether the screening criteria happen to identify companies that perform well.

The fund’s annual costs include the management fee for operating the screening process, maintaining the criteria, and managing the portfolio. These costs are typically higher than a passive broad-market index fund, reflecting the active research required to apply the values screen. Investors willing to accept lower average market returns in exchange for values alignment must be comfortable that the fee structure reflects the service provided.

Risks in PRAY

Concentration risk arises from screening. By excluding entire industries, the fund may be underexposed to sectors that perform well in certain market regimes. A sharp rally in tobacco stocks or alcohol producers, for example, would be largely missed by PRAY.

Model risk in values definition is real. The criteria for what constitutes a Christian business practice can be interpreted differently across time and communities. A change in the fund’s leadership or philosophy could alter the screening criteria, potentially triggering portfolio changes and turnover.

Liquidity is not a concern for PRAY itself as an exchange-traded security, but the underlying companies are all liquid US large and mid-cap stocks, so the fund itself is easy to trade.

Who PRAY is for

PRAY suits investors who prioritize values alignment with Christian teaching alongside financial returns, and who are willing to accept that a values-based screen may reduce diversification and diverge from market returns. It appeals to individuals and institutions managing money according to faith-based principles, and those who view investment decisions as an expression of their values.

Researching PRAY

Start with the fund’s prospectus and the detailed values criteria, which explain exactly what companies are excluded and why, and what positive characteristics the fund favours. The fund’s website typically provides a complete list of current holdings so investors can see whether the companies match their own understanding of Christian values. Comparing PRAY’s sector allocation and company list against a broad US equity index reveals what is included and what is left out due to the screening. Historical performance data shows whether values alignment has helped or hurt returns relative to the overall market.