New Investments and Products for Retirement (July 23 2019)

The following are new investments that those saving for or living in retirement might consider for their portfolios. This week: two large-cap "biblically responsible" exchange-traded funds.
By Robert Powell, CFP® ,

The following are new investments that those saving for or living in retirement might consider for their portfolios. This week: two large-cap "biblically responsible" exchange-traded funds.

Timothy Plan has launched the Timothy Plan US Large Cap Core ETF (TPLC) and the Timothy Plan High Dividend Stock ETF (TPHD), two exchange-traded funds that pick stocks from Nasdaq indexes but exclude companies that do not comply with eVALUEator proprietary Biblically Responsible Investing screening criteria.

TPLC is a biblically responsible ETF that strives to reduce risk and produce returns through tracking the performance of the Victory US Large Cap Volatility Weighted BRI Index, which includes Timothy Plan's traditional biblical screens.

TPHD is a biblically responsible ETF that strives to reduce risk and produce returns, along with dividend income, through tracking the performance of the Victory US Large Cap High Dividend Volatility Weighted BRI Index, which includes Timothy Plan's traditional biblical screens.

Both funds have 0.52% expense ratios.

"In general, whether I am near retirement or in retirement, I would avoid most of these concepts," says John Del Vecchio, co-author of "What's Behind the Numbers?"

"This one in particular only makes sense to me if you share the same exact values as the index. If that's how you want to invest, which may not maximize your capital, then so be it."

But, the index avoids gambling for example, says Del Vecchio. "Yet, the stock market is one of the biggest casinos in the world," he says. "The average stock is held less than the time it takes to play a hand of blackjack. Meanwhile, the legalization in gambling presents huge opportunities that this index will miss because they won't be invested in those stocks."

In addition, Del Vecchio says the ETFs have problems. "For example, one of the opportunities with legalized gambling is that you'll be able to make in-game bets with your mobile device," he says. "Want to bet LeBron James makes that free throw? You'll be able to push a button to do it."

So, here's the rub. "What if that bet is made on your iPhone?" Del Vecchio asked. "Is Apple (AAPL) - Get Report now out of the index? Where do you draw the line? You could always take your market profits and donate them to a cause such as gambling addiction. Or, better yet, use the gains to help someone directly."

Got questions about the new tax law, Social Security, retirement and/or investments? Email Robert.Powell@TheStreet.com.

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