The Vatican Bank announced on Tuesday the launch of two equity indexes that track stocks aligned with Catholic values, marking its initial step into thematic investment products. This strategic move positions the bank for potential future offerings, including exchange-traded funds (ETFs).
In a statement, the bank, which operates under the authority of the Committee of Cardinals and the Pope, introduced the Morningstar IOR Eurozone Catholic Principles Index and the Morningstar IOR U.S. Catholic Principles Index. These indexes feature 50 medium and large-cap companies that comply with Catholic ethical criteria, emphasizing human bonds and social justice.
"Having benchmarks built in accordance with recognized Catholic ethical criteria allows us to make our performance assessment and reporting processes even more rigorous and transparent," stated Giovanni Boscia, the deputy director general and CFO of the Vatican Bank. "This initiative reaffirms our commitment as a financial institution serving the Church, further strengthening the role of the [Vatican Bank] as a reference point for the Catholic world," he added.
The Eurozone fund includes major holdings such as semiconductor supplier ASML Holding and telecommunications company Deutsche Telekom, while the U.S.-based index features Meta Platforms and Amazon among its largest holdings.
The introduction of these indexes raises the possibility of them being licensed for use in exchange-traded funds in the future.
This launch coincides with a growing interest in ETFs and thematic investment products among investors. According to PricewaterhouseCoopers, the global ETF market surged nearly 30% to over $14 trillion in 2024. PwC also projects the combined value of such funds could reach $30 trillion by 2029, as per its March 2025 report.
Moreover, investment products focused on social responsibility and related themes attract a specific group of investors. For instance, the Ave Maria Mutual Funds, which allocates capital in line with Catholic teachings, reported $3.8 billion in assets under management as of last year, according to its website.
The Vatican Bank continues to reform its image following previous scandals. The Holy See-affiliated financial entity has faced numerous allegations of money laundering and connections to organized crime, notably after the collapse of Milan-based Banco Ambrosiano in 1982. In 2021, former Vatican Bank president Angelo Caloia was convicted of money laundering and embezzling millions of euros during his tenure at the institution.