Vatican Bank makes first foray into equity indexes, setting stage for potential ETF launches
CNBC: Vatican Bank launches equity indexes tracking stocks aligned with Catholic values. Potential future financial products include ETFs.
Paraphrased: The Vatican Bank has introduced two equity indexes that focus on stocks reflecting Catholic values, aiming to expand its financial offerings in the future. These thematic indexes are based on ethical criteria consistent with Catholic principles, such as prioritizing human bonds and social justice. This move reinforces the bank’s commitment to serving the Church and positions it as a reference point for the Catholic world. The indexes include companies like ASML Holding, Deutsche Telekom, Meta Platforms, and Amazon. With the growing popularity of ETFs and thematic investment products, there is potential for these indexes to be licensed for use in an exchange traded fund. This initiative comes as the global ETF market continues to expand, reaching over $14 trillion in 2024 and potentially reaching $30 trillion by 2029. Additionally, there is a growing interest in investment products rooted in social responsibility, appealing to a certain segment of investors. The Vatican Bank’s efforts to reform its image follow past scandals, including allegations of money laundering and ties to organized crime. Former Vatican Bank president Angelo Caloia was convicted of money laundering and embezzlement in 2021.
