TY - JOUR T1 - Catholic Values and Direct Indexing: No Performance Penance Needed JF - The Journal of Beta Investment Strategies SP - 117 LP - 127 DO - 10.3905/jbis.2022.1.006 VL - 13 IS - 2 AU - Rafika Shibly AU - Andrew Subkoviak AU - Paul Bouchey Y1 - 2022/05/19 UR - https://pm-research.com/content/13/2/117.abstract N2 - In this article, we demonstrate that Catholic investors are able to own a market-like portfolio that is well aligned with their faith. We examine the MSCI USA Catholic Values Index and the S&P 500 Catholic Values Index. We show that the performance from 1998 to 2021 was largely in line with the base index, with some outperformance observed in the recent 10-year period. We highlight a direct indexing method for reducing performance variations observed in the standard Catholic values indices. Using less restrictive screens and optimization methods, we create a portfolio with reduced tracking error relative to the target index. We also discuss applications to global markets, taxable investors, and the issue of active ownership. ER -