The Vatican lists two ‘ethical’ ETFs on the stock exchange.

The Holy See has reached an unprecedented milestone in the financial markets. The Institute for the Works of Religion (IOR), better known as the Vatican Bank, has launched two thematic ETFs backed by Morningstar-designed indices: one focused on large- and mid-cap U.S. equities, the other on the euro zone.

Named “Catholic Principles,” these indices each comprise 50 companies selected according to criteria inspired by the Church’s social doctrine. Notably excluded are activities related to arms, abortion, or fossil fuels. On the American side, heavyweight tech giants are in the basket; in Europe, notable inclusions include ASML Holding, SAP, and LVMH.

Beyond the financial innovation, the initiative sits within Pope Francis’s reform strategy to clean up the Vatican’s finances, long stained by scandals. It remains to be seen whether this deliberate foray into responsible finance will help stabilize a budget still under pressure.