Introduction
As an investor, I often seek opportunities that align with my values. One niche yet growing segment in ethical investing is anti-abortion mutual funds—investment vehicles that exclude companies involved in abortion services, contraception, or related healthcare. These funds cater to investors who prioritize pro-life principles while aiming for financial returns.
Table of Contents
What Are Anti-Abortion Mutual Funds?
Anti-abortion mutual funds, also called pro-life funds, follow strict screening criteria to exclude companies that:
- Provide abortion services (e.g., Planned Parenthood).
- Manufacture abortion drugs (e.g., Mifepristone producers).
- Fund or support abortion-related advocacy.
These funds often overlap with faith-based investing, where religious principles guide investment choices.
Key Features of Anti-Abortion Mutual Funds
- Negative Screening – Excludes companies linked to abortion.
- Positive Screening – Invests in firms supporting pro-life causes.
- ESG Integration – May include environmental and governance factors.
Performance of Anti-Abortion Funds
A common question I hear is: Do anti-abortion funds underperform the market? The answer depends on fund composition.
Comparison with S&P 500
| Fund Name | 5-Year Return (%) | S&P 500 Return (%) | Expense Ratio |
|---|---|---|---|
| Ave Maria Growth Fund | 9.2 | 10.5 | 0.92% |
| Timothy Plan Aggressive Growth | 8.7 | 10.5 | 1.25% |
| LKCM Aquinas Catholic Equity | 8.9 | 10.5 | 0.99% |
Data as of 2023 (Morningstar, SEC filings)
As seen, these funds lag the S&P 500 by 1-2% annually, partly due to restricted investment options. However, they still provide competitive returns for ethically constrained investors.
Mathematical Modeling: Risk-Adjusted Returns
To assess performance, I use the Sharpe Ratio, which measures risk-adjusted returns:
Sharpe\ Ratio = \frac{R_p - R_f}{\sigma_p}Where:
- R_p = Portfolio return
- R_f = Risk-free rate (e.g., 10-year Treasury yield)
- \sigma_p = Portfolio volatility
For Ave Maria Growth Fund:
- R_p = 9.2\%
- R_f = 2.5\%
- \sigma_p = 12\%
The S&P 500’s Sharpe Ratio is typically 0.8-1.0, indicating that anti-abortion funds may carry higher risk for lower returns.
Ethical vs. Financial Trade-Offs
Investing in anti-abortion funds involves trade-offs:
Pros:
✔ Aligns with pro-life values.
✔ Avoids controversial industries.
✔ Supports faith-based investing principles.
Cons:
✖ Limited diversification (fewer healthcare stocks).
✖ Slightly lower returns than broad-market funds.
✖ Higher expense ratios (due to screening costs).
Tax Implications and Legal Considerations
The IRS treats these funds like any other mutual fund. However, some states offer tax incentives for faith-based investments. For example:
- Texas allows tax deductions for donations to pro-life charities.
- Florida has proposed bills to support anti-abortion investing.
Investors should consult a tax advisor to optimize deductions.
Future Outlook
With the overturning of Roe v. Wade, demand for anti-abortion funds may rise. However, regulatory risks persist:
- SEC scrutiny on ESG disclosures.
- State laws affecting abortion-related investments.
Projected Growth of Ethical Funds
| Year | Anti-Abortion AUM ($B) | Growth Rate (%) |
|---|---|---|
| 2023 | 2.5 | — |
| 2025 | 3.1 | 24% |
| 2030 | 5.0 | 100% |
Estimates based on Faith-Based Investing Trends (2023)
Conclusion
Anti-abortion mutual funds offer a values-aligned investment but come with financial trade-offs. While they may underperform the S&P 500, they fulfill ethical objectives for pro-life investors.
