What is the PRAY ETF?
5 min read
By Ron Koren, ETF Insider

What is the PRAY ETF?

In the ever-evolving landscape of finance, exchange-traded funds (ETFs) have gained remarkable popularity for their ability to provide diversified exposure to various asset classes. One such unique ETF that stands out is the PRAY ETF, offering investors a way to align their investment strategies with their Christian values. In this article, we will delve into the key aspects of the PRAY ETF, exploring its objectives, investment strategy, and the principles that guide its portfolio composition.

PRAY ETF: Overview

The PRAY ETF is not your typical ETF. It falls into the category of actively managed ETFs, designed to go beyond conventional financial metrics and incorporate Christian values into its investment decisions. Under normal circumstances, the fund invests in equity securities, including common stocks, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs) of both international and domestic companies. Its primary goal is to outperform the MSCI World Index, a widely recognized benchmark in the world of investing.

Applying Christian Values: Investment Criteria

A distinctive feature of the PRAY ETF is its commitment to aligning its portfolio with Christian values. Capital Insight Partners, LLC, the Sub-Adviser, employs a multi-faceted approach to evaluate potential holdings. This approach takes into consideration whether a company's operations are consistent with biblical teachings. The ETF excludes companies involved in activities such as abortion, contraception, human rights violations, pornography, alcohol, tobacco, and more. This screening process is intended to create a portfolio that resonates with investors seeking investments that reflect their ethical and moral beliefs.

Active Management and Risk Mitigation

The PRAY ETF's investment strategy combines quantitative screening, fundamental research, qualitative analysis, and Christian values overlay. The Sub-Adviser employs a growth at a reasonable price (GARP) strategy to identify companies with above-average investment potential. Additionally, the ETF utilizes technical analysis, geopolitical considerations, and relative market valuation metrics to make informed investment decisions.

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To manage risk, the fund maintains flexibility by investing in both domestic and foreign securities. It has the ability to allocate up to 50% in cash or cash equivalents during times of macroeconomic shifts or extreme market events. Furthermore, if a stock's price experiences significant declines, the Sub-Adviser reviews the position for potential sale to ensure alignment with the investment thesis.

Diversification and Portfolio Construction

The PRAY ETF strives for broad diversification by considering sector and regional weights in comparison to its benchmark. The ETF typically holds 60 to 80 portfolio companies, investing primarily in companies with market capitalizations greater than $1 billion. The inclusion of call and put options on correlated indexes adds an additional layer of risk management, adapting to changing market environments and the ETF's underlying equity holdings.

The PRAY ETF presents a unique opportunity for investors who aim to integrate their Christian values with their financial decisions. By actively selecting companies that align with these values and employing a robust investment strategy, the fund offers an avenue for individuals to make investments that resonate with their beliefs. As with any investment decision, thorough research and understanding are crucial. It's important to consider how well the fund's objectives align with your personal financial goals.

This article is for informational purposes only and does not provide investment advisory services. Investing involves risks, and individuals should carefully consider their financial situation and consult with a qualified financial advisor before making any investment decisions.


PRAY ETF issuer
PRAY ETF official page

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  • What is the PRAY ETF?

    PRAY ETF, is an exchange-traded fund that provides investors with exposure to companies operating in the relevant sector.

  • What is the underlying index that the PRAY ETF aims to track?

    PRAY ETF aims to track the performance of a specific index, which includes companies involved in various aspects of the relevant industry.

  • What types of companies are included in the PRAY ETF?

    PRAY ETF includes companies from the relevant industry, which may consist of specialized firms, equipment manufacturers, and other related entities.

  • How does the PRAY ETF work?

    PRAY ETF functions by pooling investors' capital to purchase a diversified portfolio of related stocks, aiming to replicate the performance of the underlying index.

  • What are the advantages of investing in the PRAY ETF?

    Investing in the PRAY ETF offers exposure to a specialized sector with potential for growth and innovation. It allows investors to diversify within the industry, which could experience significant advancements and expansion in the future.