School/Department
Crowell School of Business
Publication Date
2019
Abstract
In the U.S., two of the most important investment trends over the last 10 years have been the rise of index investing and the rise of Sustainable, Responsible and Impact (SRI) investing. So, it would make sense that new indexes would emerge based on SRI principles. One such index is the new Inspire Small/Mid Cap Impact Equal Weight Index, which is the first biblically-based SRI index. This paper briefly discusses the methodology of this index and shows that its strong back-tested risk-adjusted returns (relative to its non-SRI S&P benchmark), are not due to sector bias (as one would expect), but are attributed to favorable stock selection within each industry sector. This index is likely the beginning of a wave of more sophisticated passive products that will meet the needs of niche investor populations better than the active products of the past.
Keywords
Sustainable, Responsible and Impact (SRI) investing;
Recommended Citation
Enete, Shane, "Performance Attribution of the First Biblically Responsible-based SRI Index" (2019). Faculty Articles & Research. 394.
https://digitalcommons.biola.edu/faculty-articles/394