A Comparative Look at the Costs of Faith-Based ETFs

A JLens analysis reveals that the JLens 500 Jewish Advocacy U.S. Index ETF (TOV) has a competitive expense ratio of 18 basis points compared to other faith-based U.S. large-cap ETFs, which average 35 basis points; however, broad market ETFs like IVV and VOO have expense ratios of only 3 basis points. TOV, the first and only large-cap U.S. equity Jewish-themed ETF, allows investors to align investments with Jewish values, including combating antisemitism and supporting Israel, while seeking comparable performance to the S&P 500.

Analysis

The JLens 500 Jewish Advocacy U.S. Index ETF (TOV) presents a distinct investment vehicle for individuals seeking to align their portfolios with Jewish values, including combating antisemitism and supporting Israel, while targeting performance comparable to the 500 largest U.S. public companies. A JLens analysis indicates TOV's expense ratio of 18 basis points is competitive within the faith-based U.S. large-cap ETF sector, where the average expense ratio for ten comparable funds (excluding TOV) stood at 35 basis points as of February 3, 2025. For instance, large faith-based ETFs such as SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS), Global X S&P 500 Catholic Values Custom ETF (CATH), and Wahed FTSE USA Shariah ETF (HLAL) carry higher or comparable expense ratios of 45, 29, and 50 basis points, respectively. However, TOV's fee is substantially higher than broad market index ETFs like the iShares Core S&P 500 ETF (IVV) and Vanguard S&P 500 ETF (VOO), which charge only 3 basis points. This cost differential highlights the premium associated with TOV's specialized value-based investment screening, a characteristic absent in broad market ETFs. As the first and only large-cap U.S. equity Jewish-themed ETF, TOV fills a specific niche, and its positive sentiment score of 0.8 underscores its favorable presentation as a unique offering.

Key Decisions for Investors

• Investors prioritizing alignment with Jewish values in their U.S. large-cap equity exposure should consider TOV, noting its unique market position and competitive expense ratio relative to other faith-based ETFs.
• Evaluate the trade-off between TOV's 18 basis point expense ratio for values-based screening against the significantly lower 3 basis point fees of broad market S&P 500 ETFs like IVV or VOO, quantifying the cost of value alignment.