By Jonathan I. Shenkman

I have long encouraged my wealth management clients to align their personal values with their investments. Thus, as a Jew and proud Zionist, I was interested to learn about the newly launched JLens 500 Jewish Advocacy U.S. ETF. A joint project of the Anti-Defamation League and Jewish investor group JLens, this exchange-traded fund aims "to empower investors to combat antisemitism, support Israel, and embody Jewish values." After launching in late February, it had amassed more than $100 million in assets by March 11.

As with any impact investing vehicle, it is imperative to look under the hood of TOV to determine whether it is a sensible investment and not just a marketing ploy. Here are my initial thoughts:

Mission: Given the rise in antisemitism, the increase in antisemitic incidents, and the unjustified demonization of Israel around the world, a financial product that aims to fight these injustices through shareholder advocacy may resonate with many U.S.-based investors, especially those who are Jewish.

According to the fund's fact sheet, TOV's strategy aims to deliver performance comparable to index funds that track the 500 largest U.S. public companies while screening out companies with business activities that don't align with Jewish values. It will then score the remaining stocks based on Jewish values. Finally, the fund will engage with corporate leaders to combat antisemitism, support Israel, and promote the Jewish value of Tikkun Olam (which loosely translates to "bettering the world.").

Fees: The expense ratio is listed at 0.18%, which is quite reasonable. By way of comparison, one of the largest ESG ETFs, the Vanguard ESG U.S. Stock ETF, has an expense ratio of 0.09%. On the other hand, the largest clean energy ETF, the iShares Global Clean Energy ETF, has an expense ratio of 0.41%. The fee structure also looks attractive relative to other faith-based ETFs. The FIS Christian Stock Fund has an expense ratio of 0.69%, while the Wahed FTSE USA Shariah ETF has an expense ratio of 0.50%.

Holdings: The fund's largest holdings look similar to the S&P 500, albeit with slightly different weightings. This portfolio composition, which means the ETF isn't seeking unusual or overly speculative stocks, offers comfort. On the other hand, it may cause some investors to wonder why they wouldn't just own an S&P 500 ETF, which would give far more liquidity at a fraction of the price.

Ability to affect change: The essential question for investors who are looking to align their values with their money is whether the portfolio management team, and the folks they work with at the ADL, will be able to influence large U.S. companies with the ETF's stated goal of fighting antisemitism and supporting Israel.

The fund size is currently quite small compared with other institutional players, but ADL has a powerful voice and laser-focused mission of fighting hate and those who aim to boycott Israel. My hope is this ETF can drive change among those companies who currently have conflicting values. Only time will tell if they are successful.

Implementation: For financial advisors who find this product suitable for their clients, I would suggest paying close attention to the overall weighting within their portfolio. Allocating more than 5% of one's portfolio to any niche product may be imprudent. Investors can carve out the money for the TOV portion of their portfolio from their large-capitalization U.S. equity sleeve, given how TOV overlaps with a traditional S&P 500 fund.

Overall, I would view this ETF through the same lens as any ESG product. Namely, if it helps increase the likelihood that an investor will stick with their strategy because they wholeheartedly believe in the fund's mission, then it is a big win in my book. After all, staying the course during market gyrations and letting compounding work its magic is the ultimate way to build wealth and achieve a client's financial objectives.

Furthermore, I'd advise clients who are passionate about fighting antisemitism and supporting Israel to consider complementing an allocation to this fund with other aspects of their financial life. This includes modifying one's philanthropic dollars, discretionary spending, and lifestyle choices toward these same goals. Remember, wealth planning encompasses more than just investing. To have the biggest impact, aligning your time, money, and efforts with your values is the best way to make a lasting difference.

Jonathan I. Shenkman, AIF, is the president and chief investment officer of ParkBridge Wealth Management and is based in New York. His practice addresses all aspects of clients' retirement planning, including collaborating with their other trusted advisors to help facilitate and manage various tax, estate and financial planning strategies to achieve their goals.

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March 17, 2025 15:45 ET (19:45 GMT)

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