Image Source: Pexels

The S&P 500^® Christian Values Screened Index distinguishes itself by excluding companies from the S&P 500 that engage in certain activities that do not align with the Evangelical Christian Investment Framework defined by Bountiful Financial. This framework employs specific exclusions based on S&P Global Energy Horizons revenue-based business involvement screens,¹ catering to market participants who wish to uphold their religious values.

During each rebalancing, the index maintains the sector weights of The 500™ by redistributing the weight of excluded stocks to the remaining companies within the same GICS^® sector. This analysis examines the effects of excluding companies and the subsequent weight redistribution on the index’s performance over the one-year period ending Oct. 31, 2025. The findings of this analysis are summarized in Exhibit 1.

(Click on image to enlarge)

During this period, the S&P 500 Christian Values Screened Index outperformed The 500 by 0.61%. This outperformance is attributed to the stronger performance of the remaining companies after their weights were redistributed. However, the excluded companies collectively contributed 0.29% to the performance of The 500.

To fully understand the implications of these changes, it is essential to consider both the excess performance of the S&P 500 Christian Values Screened Index relative to the S&P 500 and the contribution of the excluded companies to the S&P 500’s performance. By subtracting the contribution of the excluded companies from the index’s excess performance, we arrive at a net impact of 0.32% from the weight distribution.

An interesting aspect to consider is the long-term historical performance of the excluded companies in comparison to The 500. This analysis can provide valuable insights into the impact of religious values-driven choices on index performance over time. However, it’s important to emphasize that the performance of these companies can fluctuate, and the S&P 500 Christian Values Screened Index is not specifically designed to outperform the S&P 500.

Exhibit 2 illustrates the historical performance of the five highest-weighted excluded companies over the past decade.

(Click on image to enlarge)

Only Eli Lilly & Company, which was excluded for its involvement with stem cells, outperformed the S&P 500, achieving an excess performance of 707.21%. In contrast, the other four companies underperformed the index: RTX Corporation and UnitedHealth Corporation, excluded due to involvement with blinding laser weapons and abortion, respectively, underperformed by 22.43% and 35.39%, respectively. Additionally, Johnson & Johnson, also excluded for its association with stem cells, underperformed by 140.98%. Furthermore, Wells Fargo & Company, which was excluded due to its involvement with predatory lending, underperformed The 500 by 191.06%.

In summary, the S&P 500 Christian Values Screened Index offers a view into the performance of companies that align with specific religious values. The back-tested performance of the index underscores the significance of weight redistribution and the contributions of both included and excluded companies. This careful construction could help market participants to understand the dynamics of index performance while adhering to religious values-centric approaches.

¹ See the S&P 500 Christian Values Screened Index Methodology for more information.

More By This Author:

Still Quality By Design: A Deep Dive Into The Recent Performance Of The S&P SmallCap 600
The Peruvian Stock Market: Insights On Performance And Benchmarking
Exploring The Depth Of Mega Caps: A Look At The S&P 100 Ex-Top 20 Select Index