Timothy Plan High Dividend Stock ETF (TPHD)

The Timothy Plan High Dividend Stock ETF (TPHD) invests in dividend-paying US companies selected through both conventional financial analysis and a layer of ethical screening based on Christian principles, creating a portfolio that combines yield-seeking with values-based exclusions.

The founding vision: biblical investing as alternative

Timothy Plan itself emerged in 1994, founded by Arthur Ally in Maitland, Florida. Ally, a former Lehman Brothers employee, recognised an opportunity that most asset managers had overlooked: a substantial investor base wanted to align their portfolio holdings with their religious convictions and moral beliefs, yet faced no mainstream vehicle for doing so. Rather than passively accept the holdings in a standard index fund, Timothy Plan developed systematic screens that would exclude companies violating Christian values while still pursuing competitive financial returns.

The company’s founding was rooted in a specific realisation — that investment screening could accomplish more than financial analysis alone. Timothy Plan pioneered the concept of Biblically Responsible Investing, or BRI, as a distinct asset-management discipline. Over the decades that followed, the firm expanded from a single mutual fund into a suite of offerings, including ETFs that brought the screening approach to exchange-traded formats, where they could trade with the flexibility and pricing efficiency of stocks while maintaining the underlying values-based logic.

TPHD arrived as one of Timothy Plan’s ETF-wrapped approaches to dividend strategies. Rather than create a completely novel fund, Timothy Plan adapted its existing high-dividend selection process into an ETF wrapper, making it accessible to investors who prefer intra-day trading and transparent holdings.

How the dividend strategy works within the biblical screens

TPHD’s construction process operates in two stages. First, it identifies eligible companies — those that pass Timothy Plan’s biblical-screening criteria. These screens exclude producers of abortion-related services, pornography, alcohol, tobacco, and gambling products. They also disqualify firms with material involvement in child labour, support for designated terrorist nations, or, as Timothy Plan describes it, “entertainment, lifestyles or marriages the company perceives as contrary to Biblical principles.” The screens are applied to a broad universe and continuously monitored, so holdings are dropped if they breach the criteria at any point.

Within that screened universe, TPHD then applies a secondary dividend-yield filter, selecting companies with above-average dividend yields on the assumption that high payouts attract value-seeking income investors. The result is a portfolio tilted toward mature, cash-generative businesses — utilities, financial services, consumer staples, and real estate investment trusts, sectors where dividend payments are cultural norms and profit distribution is the dominant shareholder return mechanism.

This dual-layer approach creates a distinct risk-return profile. The biblical screens eliminate entire sectors (alcohol, tobacco, defence contractors with specific products, gaming) that are often large and stable dividend payers. That exclusion means TPHD is not simply a broadly screened dividend portfolio; it is narrower, more concentrated, and structured around a specific worldview about which companies are acceptable holdings.

Who owns it and why

TPHD’s natural investor base is evangelical Christian and socially conservative households who have both capital to invest and a commitment to values alignment. The strategy acknowledges that financial returns and personal conviction are not mutually exclusive — that a disciplined, values-filtered approach to dividend investing can still generate competitive yield and total returns.

Practically, the fund serves a dual purpose: it provides a vehicle for investors to avoid companies they find objectionable on moral grounds, and it offers proof of concept that values-based screening does not inherently require sacrifice on return. If TPHD’s dividend yield and total return compare reasonably to conventional dividend ETFs, the case for moral screening strengthens. If the returns lag materially, investors must decide whether the values alignment justifies the cost.

Scale, costs, and competitive position

TPHD trades on the NASDAQ and holds a range of dividend-paying US equities. Its expense ratio is higher than that of broad dividend-index ETFs but lower than actively managed mutual funds, a typical positioning for a screened index product. The fund’s assets and trading volume have grown over time as Timothy Plan’s brand has gained recognition, though TPHD remains far smaller than commodity dividend ETFs like SCHWAB US Dividend ETF or Vanguard dividend-focused products.

The competitive landscape has shifted. Timothy Plan pioneered values-based screening in the 1990s when ESG — environmental, social, and governance investing — was barely an industry term. Today, ESG funds and socially conscious investing products number in the thousands. Religious and values-based screening is now a recognised subsector, with Islamic finance products, Catholic-focused funds, and a proliferation of screens targeting climate impact, labour practices, and diversity metrics.

Within that landscape, TPHD represents a specific theological position. Unlike secular ESG funds, which typically avoid tobacco and fossil fuels on environmental grounds, TPHD excludes them partly for moral reasons and partly because those industries conflict with certain Biblical teachings. The screening logic is transparent but doctrinally particular, appealing to a defined constituency rather than a broadening coalition.

The practical research question

An investor evaluating TPHD should first confirm what screens are actually in force. Timothy Plan publishes its screening criteria publicly, and the fund’s holdings are disclosed in real time, allowing comparison against the stated rules. The next question is whether the yield and total return of TPHD’s portfolio meet the investor’s return requirements — in other words, whether the values alignment is “free” or carries a return penalty. If the dividend yield is competitive with mainstream dividend ETFs and the growth trajectory is respectable, the moral screening is a genuine benefit to a values-aligned investor. If TPHD lags materially, the investor must weigh the conviction against the cost.

Finally, any long-term holder of TPHD should monitor whether Timothy Plan’s screening philosophy remains consistent and whether the company maintains independent judgement. Screening criteria can shift over time, either tightening or loosening, in response to market pressure, shareholder demands, or theological evolution. A committed values investor needs to stay informed about what the fund actually holds and why, rather than relying on past expectations.