A new exchange-traded fund (ETF) is making waves in the investment world by merging financial performance with ethical investing. The TOV ETF, launched by JLens, a subsidiary of the Anti-Defamation League (ADL), seeks to align investments with Jewish values while maintaining exposure to some of the largest publicly traded U.S. corporations.
This innovative ETF reflects a growing trend in values-driven investing, balancing profitability with social responsibility. But what makes TOV different from other ethical investment funds, and how does it approach corporate advocacy?
What Is the TOV ETF?
Exchange-traded funds (ETFs) allow investors to buy shares in a diversified portfolio of companies, often tracking specific market indexes or investment themes. The TOV ETF, which started trading at $25 per share, focuses on investing in the 500 largest publicly traded U.S. corporations while excluding businesses that do not align with Jewish ethical principles.
Key Features of the TOV ETF:
✔️ Light Exclusion Policy – Instead of strictly avoiding controversial firms, TOV follows an “own and advocate” model to influence corporate behavior.
✔️ Broad Market Exposure – The fund holds about 496 stocks, maintaining a well-diversified portfolio.
✔️ Ethical Investment Approach – Excludes certain companies that conflict with Jewish values while keeping others to promote active engagement.
Excluded Companies: Selective but Notable
While TOV’s exclusion criteria are not overly restrictive, the fund has deliberately left out companies involved in industries or actions that contradict its ethical framework.
🚫 Excluded Companies Include:
- Altria & Philip Morris – Due to involvement in the tobacco industry.
- ConocoPhillips – Excluded for tar sands mining, an environmentally damaging practice.
- General Mills – Dropped after selling its stake in a Jerusalem factory in 2022.
Despite these exclusions, TOV ETF retains major corporate players, particularly in technology, e-commerce, and finance.
TOV’s Top Holdings: Big Tech Plays a Central Role
Surprisingly, some of TOV’s biggest investments include tech giants that have faced controversies over content moderation and antisemitic rhetoric.
Major Holdings Include:
💻 Meta Platforms (Facebook, Instagram) – Criticized for handling hate speech and misinformation.
📦 Amazon – Scrutinized for content moderation and e-commerce policies.
🚗 Tesla (2% of total holdings) – CEO Elon Musk has been accused of amplifying extremist voices on Twitter (now X).
A Controversial Yet Strategic Investment Approach
TOV’s decision to invest in companies like Meta, Amazon, and Tesla has sparked debate. These firms represent nearly 10% of the fund, making them influential to its performance.
🗣️ ADL CEO Jonathan Greenblatt has criticized Meta’s content moderation, calling its policy shifts “mind-blowing”.
⚖️ Critics argue that including these companies undermines the fund’s ethical principles.
📈 JLens defends the approach, stating it allows direct shareholder advocacy rather than divestment.
Should an ethical ETF invest in companies it seeks to reform? That’s the question at the heart of TOV’s unique engagement strategy.
Jewish Organizations Commit Over $100 Million
The TOV ETF has strong backing from prominent Jewish organizations, reinforcing its credibility in faith-based investing.
🏦 Financial Commitments from Major Jewish Groups:
✔️ Jewish Federation of Greater Pittsburgh
✔️ Atlanta Jewish Foundation
Together, these organizations have pledged over $100 million to the ETF, highlighting its potential as a long-term investment vehicle rooted in Jewish values.
Ethical Investing or Pragmatic Strategy?
One of the most debated aspects of TOV’s structure is whether it is truly an “ethical” investment vehicle or simply a pragmatic approach to ESG investing.
Two Key Perspectives:
🟢 Proponents Say:
- Engagement over exclusion helps drive corporate change.
- The ETF preserves financial growth while still promoting Jewish values.
- Active ownership allows investors to advocate from within major companies.
🔴 Critics Say:
- Holding stocks in controversial companies weakens the ETF’s moral stance.
- Financial performance may take priority over actual ethical impact.
- Light exclusion criteria make it less restrictive than other faith-based funds.
JLens’ Managing Director, Ari Hoffnung, defends the balanced approach, stating:
“TOV reserves its strongest screening and advocacy for areas of clear Jewish consensus while respecting the legitimate diversity of Jewish thought on complex policy questions.”
This pragmatic stance sets TOV apart from other activist funds, which typically divest from controversial companies rather than seeking to influence them.
TOV ETF: A Unique Addition to the Ethical Investment Market
The TOV ETF represents a new chapter in values-based investing, combining:
📊 Financial Growth – Exposure to top U.S. stocks ensures strong investment potential.
📢 Corporate Advocacy – Prioritizes engagement over exclusion, giving Jewish investors a voice in corporate decisions.
🛠 Selective Ethical Screening – Avoids some companies while retaining influence over key market players.
Will TOV’s Strategy Pay Off?
As thematic investing grows, TOV stands out as a faith-driven yet financially focused ETF. Its success will depend on:
🔹 How effectively it drives change within the companies it holds.
🔹 Whether its performance can attract more institutional investors.
🔹 The broader trend of values-based investing in the financial world.
While its approach to corporate ethics remains a hot topic, one thing is clear: TOV is reshaping how faith-driven investors approach the stock market. 🚀
