Timothy Plan US Large/Mid Cap Core ETF (TPLC)

The Timothy Plan US Large/Mid Cap Core ETF (TPLC) constructs a portfolio of major and substantial American companies — the names that form the backbone of most investor portfolios — then applies biblical and ethical screens to determine which ones are actually held.

The “core” strategy: what it means

“Core” in portfolio terminology refers to the central, most essential holdings — the reliable, broad-based exposure that anchors a portfolio. A core US-equity fund holds the kinds of companies that dominate the American economy: large multinational industrials, technology firms, consumer-goods conglomerates, banks, insurance companies, energy producers, and healthcare businesses. These are household names and the everyday operating firms that employ millions of people and generate steady cash flows.

TPLC targets large and mid-cap equities — corporations with market capitalisations in the tens of billions of dollars or more. This size range includes virtually every publicly traded company that drives material economic activity. Unlike a small-cap fund that hunts for undiscovered growth or a mega-cap fund that narrows down to the absolute largest 30 or 50 names, a large/mid-cap core fund captures the productive middle and top of the market.

The appeal of a “core” positioning is strategic simplicity. If you own a broad, values-aligned portfolio of major US companies, you have captured the fundamental direction of the American economy. You do not need to speculate on emerging growth stories or bet on tiny turnaround plays. The largest US companies are well-understood, widely analysed, and less likely to vanish. A core holding is meant to be durable.

How the screening filters the landscape

TPLC’s filtering process starts with a universe of thousands of large and mid-cap US corporations. Timothy Plan then applies its biblical screens: it excludes producers of alcohol, tobacco, gambling services, and pornography; it removes companies with material involvement in abortion-related services; it rules out firms with significant ties to designated terrorist nations or patterns of child labour. It also excludes companies whose entertainment, lifestyle, or family-related practices the firm assesses as contrary to Christian teaching.

This multilayered screening eliminates some of the most profitable and established firms in American capitalism. Tobacco stocks like Philip Morris have long been cash machines for investors. Alcohol producers and distributors move enormous volumes. Casinos and gaming operations generate consistent profits. Entertainment companies, media conglomerates, and digital platforms occupy increasingly central roles in the economy. A values-based fund that excludes these entire sectors necessarily accepts a smaller investable universe.

Within that filtered universe, TPLC then constructs a portfolio. The process is systematic rather than arbitrary: rules are applied consistently, companies either pass or do not, and the holdings are transparent and disclosed. This creates a repeatable, rule-based approach that differs from a completely subjective values judgement.

The practical portfolio that results

The result is a US-equity portfolio of large and mid-cap firms that passes muster with Timothy Plan’s criteria. This includes major manufacturers, pharmaceutical companies, consumer staples makers, energy firms, financial institutions, and technology companies — just without the segments and names that violate the screening logic.

A typical TPLC holding might be a healthcare conglomerate like Johnson & Johnson, an industrial manufacturer like 3M, a consumer goods firm like Procter & Gamble, a financial services company, or a technology firm without gaming or controversial content divisions. These are ordinary, essential American businesses. The effect of the biblical screens is felt more in what is absent: no entertainment conglomerates built on adult content, no gaming companies, no alcohol producers, no large tobacco firms.

The portfolio is still diversified across sectors, regions, and business models. It is still capturing most of the equity returns the US market generates. But it is shaped by moral criteria, not just financial ones.

Size, liquidity, and competitive position

TPLC trades on the NASDAQ and holds dozens of distinct positions across large and mid-cap territory. Its expense ratio is higher than a passive broad-market US-equity index but lower than actively managed funds. The annual turnover — the rate at which the fund replaces positions — reflects both the rigidity of the screens (forcing out any holding that breaches the criteria) and any rebalancing the fund management does to maintain the desired portfolio weighting.

The fund is part of a larger family of Timothy Plan products. Among Timothy Plan’s equity offerings, TPLC represents the “core” US-equity strategy — the broadest, most diversified offering, distinct from more focused strategies like dividend or growth-tilted funds. For investors who want straightforward US-equity exposure aligned with Christian values, TPLC is the baseline choice.

The competitive landscape includes both other values-based funds (including other Timothy Plan strategies) and conventional broad-market US-equity funds. Against a conventional index fund, TPLC carries a higher expense ratio and accepts the performance consequence of the screening. Against other values-based options, TPLC competes on cost, transparency, and the consistency of Timothy Plan’s screening application.

Returns, risk, and the cost of conviction

The fundamental question for any values-screened fund is whether the moral alignment comes at an acceptable performance cost. If TPLC returns are competitive with conventional large/mid-cap index funds over meaningful time horizons, the screening is “free” — a values benefit with no financial penalty. If TPLC materially underperforms due to the screens excluding outperforming sectors, the investor must decide whether the values alignment justifies the cost.

The answer shifts over time. In periods when excluded industries (gaming, alcohol, adult entertainment) significantly outperform, a screened fund lags. In periods when excluded companies underperform, the screens provide a tailwind. Over very long stretches, the performance difference typically shrinks, but it never disappears entirely. An investor in TPLC accepts this structural trade-off as the price of values alignment.

The volatility of TPLC also warrants attention. Large and mid-cap equities are more stable than small-caps but still experience significant drawdowns in recessions and market stress. The biblical screens do not reduce that volatility; they may change which companies experience the declines, but they do not eliminate them.

How to evaluate the holding

A prospective investor in TPLC should verify the fund’s current holdings against Timothy Plan’s published screening criteria. Do all holdings truly pass? Are any companies present that seem inconsistent with the stated rules? Transparency is a strength of rule-based screening: the rules are public, and the holdings are public, so the consistency can be checked.

Next, examine the sector composition. Is TPLC underweight or overweight versus the broad US market in particular sectors due to the screens? If TPLC is substantially underweight to information technology because of entertainment-related exclusions, that concentration matters for performance and risk. Sector positioning reveals the practical effect of the screening on portfolio structure.

Finally, assess whether TPLC’s performance meets your return requirements. Compare its total return, dividend yield, and volatility against a conventional large/mid-cap ETF or index fund. If the difference is small or immaterial, TPLC is a viable vehicle for values-aligned US-equity exposure. If the difference is substantial, you must decide whether the conviction warrants the cost. Either way, the comparison is quantifiable and knowable, so the decision can be made with full information.