The Vatican Bank has launched two equity indices with Morningstar, formalizing Catholic ethical principles within global market benchmarks as faith-based investing gains prominence amid ESG skepticism.
Vatican Bank launches Catholic stock indices
Vatican Bank launches Catholic stock indices
By The Beiruter | February 23, 2026
Reading time: 3 min
The Vatican Bank has formally entered the world of equity benchmarking. Officially known as the Institute for the Works of Religion (IOR), the bank announced on February 10 the launch of two new equity indices developed in partnership with the global investment research firm Morningstar. One index focuses on the United States, while the other tracks companies in the eurozone. Both are designed to follow firms that align with Catholic social and moral teaching.
The new benchmarks, titled the Morningstar IOR US Catholic Principles Index and the Morningstar IOR Eurozone Catholic Principles Index, each contain 50 medium- and large-cap companies selected through a combination of financial screening and ethical criteria derived from Catholic doctrine. According to the Vatican Bank
the indices were built in line with market best practices and Catholic ethical standards, and are intended to serve as reference points for Catholic investors worldwide.
The IOR states that its investment framework is guided by principles centered on the sanctity and respect for human life, environmental protection, combating addictions, and adherence to internationally recognized standards of social responsibility, including those outlined in the United Nations Global Compact. Companies are excluded if they operate hospitals or clinics that provide abortion services, manufacture military weapons or small arms, or derive significant revenue from coal extraction, oil and gas production, nuclear energy, gambling, adult entertainment, tobacco, or alcohol. The bank maintains that its policy is consistent with the Social Doctrine of the Church and inspired by key encyclicals and exhortations issued by Pope Benedict XVI and Pope Francis.
Among the leading U.S. holdings are Meta, Amazon, Tesla, and JPMorgan Chase. The eurozone index features firms such as ASML, Deutsche Telekom, and SAP.
Under the leadership of Pope Francis, the Vatican introduced structural reforms aimed at strengthening transparency, compliance, and financial oversight. In 2024, the Vatican Bank reported a profit of €32.8 million, equivalent to approximately $39 million, reflecting improved financial performance amid broader institutional restructuring.
The launch comes at a time when environmental, social, and governance (ESG) funds are experiencing substantial outflows in several Western markets. While ESG investing faces political and market headwinds, faith-based investing remains a defined niche within global capital allocation. Catholic-oriented investment products have existed for years. The S&P 500 Catholic Values Index manages more than $1 billion, while Ave Maria Mutual Funds oversees over $3.8 billion in assets under management under a Catholic-based investment strategy.
By institutionalizing its ethical framework within Morningstar’s index structure, the Vatican Bank is positioning itself as a formal reference point for Catholic investors seeking alignment between financial returns and religious principles. The move reflects a broader effort to merge doctrine with disciplined market participation, marking a notable evolution in how the Holy See engages with global finance.
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