- Vatican Bank launched two equity indexes based on Catholic ethical principles
- Indicies track 50 mid- and large-cap stocks aligned with Church teachings
- Eurozone index includes ASML and Deutsche Telekom; U.S. index features Meta and Amazon
The Vatican Bank has made its first formal entry into equity index products, launching two benchmarks designed to track companies aligned with Catholic ethical principles.
Announced Tuesday, the Morningstar IOR Eurozone Catholic Principles Index and the Morningstar IOR U.S. Catholic Principles Index each comprise 50 mid- and large-cap stocks screened for consistency with Church teachings, including criteria centred on social responsibility, human dignity and ethical governance.
The move marks the Vatican Bank's debut in thematic investing and lays the groundwork for potential expansion into exchange-traded funds (ETFs) and other structured investment products.
Benchmarks Built Around Ethical Criteria
According to the bank, the indexes were constructed using recognised Catholic ethical standards to enhance transparency in performance reporting and investment oversight.
Giovanni Boscia, deputy director general and CFO of the Vatican Bank, said the creation of dedicated benchmarks allows the institution to assess returns more rigorously while reinforcing its identity as a financial arm serving the Church.
The Eurozone index includes companies such as semiconductor equipment maker ASML Holding and telecom major Deutsche Telekom among its top constituents. The U.S. index features technology heavyweights including Meta Platforms and Amazon.
While currently structured as benchmarks, the indexes could be licensed for ETF creation in the future, potentially opening them up to a broader pool of global investors.
Riding the ETF and Thematic Wave
The launch comes amid strong growth in global ETF markets. According to PWC, global ETF assets surged nearly 30% in 2024 to exceed $14 trillion. A March 2025 report projects the market could approach $30 trillion by 2029.
At the same time, values-driven and socially responsible investment strategies continue to draw niche but committed investor segments. The Ave Maria Mutual Funds, which allocates capital in line with Catholic teachings, reported $3.8 billion in assets under management last year.
Image Rebuilding in Focus
The Vatican Bank's expansion into transparent, rule-based investment products also comes as it continues efforts to strengthen governance and restore credibility after decades of controversy.
The institution has previously faced scrutiny over allegations of money laundering and links to financial scandals, including fallout from the collapse of Banco Ambrosiano in the 1980s. In 2021, former president Angelo Caloia was convicted of financial misconduct related to his tenure.
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