Expense ratios play a crucial role in determining the accessibility and affordability of an exchanged-traded fund (ETF). With an expense ratio of 0.18%, the JLens 500 Jewish Advocacy U.S. Index (“TOV ETF”) is a competitively priced faith-based investment.

The First of Its Kind in the Jewish Investment Space

While there are several Christian and Islamic-themed ETFs available, the TOV ETF is the first and only large-cap domestic equity Jewish-themed ETF. The TOV ETF fills a critical gap in the investment landscape by providing investors with an option designed to align with Jewish values, such as combating antisemitism and supporting Israel, and which aims to deliver performance comparable to index funds tracking the 500 largest U.S. public companies.

Cost Comparison Among Faith-Based ETFs

A JLens analysis of faith-based U.S. large cap ETFs found that the TOV ETF is one of the most competitive options available among similar faith-based ETFs. While faith-based ETF expense ratios vary widely, JLens found that many Christian and Muslim-focused funds operate at higher costs than the TOV ETF. For example, leading faith-based ETF providers such as the  Timothy Plan, Wahed Invest, and SP Funds, offer ETFs with expense ratios more than twice as high as TOV ETF’s 0.18% expense ratio.

The TOV ETF is scheduled to begin trading by the end of Q1 2025. At the time of publication, the TOV ETF is not yet publicly listed.

See the “Fund-to-Fund Comparison” table for the full fund-to-fund comparison.

How TOV Compares to Market Giants

While the TOV ETF offers a competitive fee structure within the faith-based segment, it is more expensive than large-cap domestic equity market ETFs from BlackRock, Vanguard, and State Street (“Market Giants”). The Market Giants large-cap equity market ETFs include the iShares Core S&P 500 ETF (IVV), Vanguard S&P 500 ETF (VOO), and SPDR S&P 500 ETF (SPY), which have notably lower expense ratios of 0.03%, 0.03%, and 0.0945%, respectively. Additionally, these three ETFs have a combined assets under management (AUM) of more than $1.8 trillion. Their large scale and massive AUM allow them to spread costs over a broader asset base, enabling them to charge lower expense ratios compared to smaller competitors.

While the TOV ETF has a higher expense ratio compared to the Market Giants’ ETFs, the TOV ETF integrates Jewish communal values into the investment process – something the Market Giants do not offer. In the TOV ETF, JLens implements Jewish value screens, including screening out companies that acquiesce to a BDS campaign. JLens scores the remaining companies on their performance measured across three Jewish value scorecards: “Combat Antisemitism & Hate,” “Support for Israel,” and “Tikkun Olam” (Repair the World). Companies that score well in the JLens scorecard receive a slight overweight while companies that score poorly receive a slight underweight. These weight adjustments involve a mere three basis points, a symbolic, non-material over- or underweighting intended to allow the TOV ETF to closely track the performance of a large-cap domestic equity benchmark.

The added value of the TOV ETF compared with the Market Giants’ offerings is apparent in its thorough, Jewish-values inspired shareholder advocacy. JLens engages with the largest public companies to combat antisemitism, support Israel, and promote the Jewish value of Tikkun Olam, meaning to repair the world. Through JLens’ shareholder advocacy, JLens holds direct dialogue with company management, votes proxies, and files shareholder resolutions. For example, by voting proxies, JLens ensures that its votes are aligned with Jewish communal interests, such as by voting against anti-Israel shareholder proposals. In comparison, investors in the Market Giant ETFs may risk inadvertently supporting anti-Israel shareholder proposals, as Market Giants’ voting on behalf of its investors may not be accounting for Jewish communal interests in their proxy voting policies.

Conclusion: TOV ETF is a Cost-Effective that Integrates Jewish Advocacy with a Risk & Return Profile Similar to the Market Giants

The TOV ETF strikes a balance between affordability and values-based investing. The TOV ETF distinguishes itself in the market with a significantly lower expense ratio than many faith-based peers. Additionally, in comparison to the Market Giants, the TOV ETF offers investors a distinct investment product based on JLens’ research and advocacy. Ultimately, if investors are interested in “investing Jewishly,” the TOV ETF is the only large-cap domestic equity ETF that integrates Jewish values and advocates on behalf of Jewish communal interests.

As of today, the TOV ETF fund is effective but has not launched. The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The Prospectus and SAI contains this and other important information about the investment company, and it may be obtained by calling (215) 330-4476. Read it carefully before investing.

ADL and JLens are affiliated nonprofit organizations. Neither organization’s staff receive direct or indirect compensation for referrals or purchases of TOV ETF or any other investment products. This communication is informational and does not constitute a securities offer.

Investing involves risk. Principal loss is possible. The Index considers JLens’ Jewish Value Pillars in its index methodology and may exclude otherwise profitable investments in companies which have been identified as being in conflict with JLens’ Jewish Value Pillars. The Fund is not actively managed, and the Adviser will not sell any investments due to current or projected underperformance of the securities, industries or sector in which it invests, unless the investment is removed from the Index, sold in connection with a rebalancing of the Index as addressed in the Index methodology, or sold to comply with the Fund’s investment limitations.

Large-Capitalization Companies Risk: Large- capitalization companies may trail the returns of the overall stock market. Large capitalization stocks tend to go through cycles of doing better – or worse – than the stock market in general. These periods have, in the past, lasted for as long as several years. When large capitalization companies are out of favor, these securities may lose value or may not appreciate in line with the overall market. In addition, large capitalization companies may be unable to respond quickly to new competitive challenges, such as changes in technology or consumer tastes, and also may not be able to attain the high growth rate of successful small companies, especially during extended periods of economic expansion.

Jewish Values Investing Risk: The Index considers JLens’ Jewish Value Pillars.

The JLens 500 Jewish Advocacy U.S. ETF is distributed by Quasar Distributors, LLC.