On Tuesday, Praxis Investment Management made its foray into the world of ETFs with the launch of two new funds.
Both of the new Praxis ETFs are actively managed and seek to offer long-term capital appreciation for investors. Additionally, each fund has a net expense ratio of 36 basis points.
“Our new active ETFs are designed to meet the demand of faith-based investors,” noted Chad Horning, president of Praxis Funds. “Investors want competitive, values-driven investment options and they want to talk with their financial advisors about investing with their faith in mind, and these products facilitate that conversation.”
The Praxis Impact Large Cap Growth ETF (PRXG) showcases the Praxis take on an active growth strategy. At least 80% of the fund’s assets are allocated to large-cap companies with the potential for long-term growth.
Meanwhile, the Praxis Impact Large Cap Value ETF (PRXV) instead opts to focus on value. This fund has launched at a time when as advisors and investors are displaying growing interest in active value strategies.
Focus on Faith
The bedrock of the Praxis investment strategy focuses on companies that align with the firm’s faith-based values. When choosing stocks to invest in, Praxis screens companies on a wide variety of factors. This includes an analysis of company values, sustainability, positive impact, engagement, advocacy, and community investing, among others.
Even though these funds may be the first ETFs for Praxis, the firm has extensive experience piloting large-cap growth and value strategies. For instance, the Praxis Growth Index Fund and the Praxis Value Index Fund have both been on the market for well over 15 years.
Right now, market uncertainty and instability is creating more demand for active ETF strategies. As such, investors may wish to turn to PRXG and PRXV as alternative ways to pilot the large-cap market.
“While sentiment for broad ESG ETFs has slowed in recent years, these targeted ETFs can have a loyal following,” said Todd Rosenbluth, head of research at VettaFi. “Their appeal is not just equity market participation but something deeper. We are excited to see Praxis bring their expertise to the ETF market."
For more information, please visit VettaFi.com | ETF Trends.
