Frequently Asked Questions

1. How are the stocks selected for Faith Shares funds?
Starting with the 400 largest companies, the final 100 stocks are determined by eliminating those that are in objectionable industries as determined by the tenets of each denomination. Other criteria involving environmental, social and governance issues are also utilized to rank each issue before inclusion in the portfolios.

2. Are all of the funds the same?
No, each denomination varies on their tolerance to the different issues we screen within the funds. Each fund is similar, but none of them are identical.

3. What are the things you screen for?
Alcohol, tobacco, pornography, and gambling are common among all the funds. Other issues of concern are abortion and weaponry, including nuclear weapons. Once the initial screen is complete, the remaining stocks are ranked using criteria involving environmental, social and governance issues.

4. What are the symbols?
Baptist Values : FZB
Catholic Values: FCV
Christian Values: FOC
Lutheran Values: FKL
Methodist Values: FMV

5. Will the number of holdings in the FaithShares Funds change?
Each portfolio starts with 100 stocks and will only change if mergers or acquisitions change throughout the year.

6. What does “equally weighted” mean?
Since we have 100 stocks in each portfolio they are equally- weighted by giving each of them a 1% position in each fund.

7. Are the FaithShares funds actively managed?
No, they are rebalanced once a year during the third week of June; we do not actively trade. There is a possibility that the holdings could change due to a merger or an unexpected situation, but rebalancing is only done once per year.

8. Do you have any results?
Yes, FTSE, a global leader in index creation and jointly owned by the Financial Times and the London Stock Exchange, has done a formal back test of our indexes. Unfortunately, regulations prohibit us from advertising hypothetical back-tested results.

9. Is there a sales charge?
There are no front-end loads but commissions may be charged much like buying or selling stocks on the NYSE.

10. What are the FaithShares expense ratios?
All of the FaithShares funds have an expense ratio of 0.87%. We expect this rate will decline as assets reach pre-determined levels.

11. Is there a minimum number of shares or dollars necessary to buy these funds?
No, you can purchase as little as one share at a time. For orders in excess of 50,000 shares we can create a special block trade. Please contact us for more information about this process.

12. How do I buy Faith Shares Funds?
Shares of the funds are listed on the NYSE and can be purchased through any broker or on-line trading account. They trade like a stock on the New York Stock Exchange.

13. Do you expect any dividend to be paid?
Yes, there will be dividends paid. They will be dispersed quarterly.

14. Are you doing anything to spread the word of God?
Yes, we are donating 10% of the net proceeds of FaithShares back to a ministry supported by each of the denominations of our five funds.

15. Does the donation constitute a charitable contribution under IRS statutes?
No, this does not qualify for a taxable write off for the investor.

16. How are the sector weightings determined?
Our funds are weighted to match the sector allocation of the MSCI USA Index at the time of rebalance. So, if the MSCI USA Index is 16% technology in the third week of June, there will be 16 tech stocks in our funds for the following year.

17. Do you plan to launch funds for additional denominations or styles, such as market capitalization or international?
Yes, when there is sufficient demand.

18. Why did you pick these five denominations?
These are the largest denominations by US population.

Shares of FaithShares Funds may be sold throughout the day on the exchange through any brokerage account. However, shares may only be redeemed directly from a Fund by Authorized Participants, in very large creation/redemption units.

Management fees associated with fund investments are not borne by investors in individual stocks or bonds. There is no guarantee that expense ratios will be reduced in the future.

All regulated investment companies are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing, to meet diversification requirements, or due to cash creations and redemptions. Trading shares will also generate tax consequences and transaction expenses. There is no guarantee that dividends will be paid.

This material is not intended to be tax advice. The tax consequences of dividend distributions may vary by individual taxpayer.

Please consult your tax professional or financial adviser for more information with regard to your specific situation.