The Strategic Implications of FIS ETF Reorganizations for Faith-Based Investors

The reorganization of faith-based exchange-traded funds (ETFs) into the FIS Trust structure represents a pivotal shift in the landscape of values-driven investing. For investors seeking alignment between their portfolios and Christian ethical principles, the structural and strategic changes to the FIS Christian Stock Fund (PRAY) and the FIS Bright Portfolios Focused Equity ETF (BRIF) warrant careful scrutiny. These reorganizations, set to conclude in late 2025, are not merely administrative adjustments but opportunities to enhance both value alignment and portfolio efficiency.

Value Alignment: Refining Ethical Criteria

The core appeal of faith-based ETFs lies in their adherence to biblically responsible investment (BRI) criteria. PRAY, for instance, excludes companies involved in abortion, contraception, armaments, gambling, and alcohol or tobacco production, while applying a growth-at-a-reasonable-price (GARP) strategy to identify undervalued stocks as of December 12, 2025. Its reorganization into the FIS Trust, approved by its Board of Trustees, maintains this 80% minimum allocation to BRI-compliant assets under normal market conditions according to fund documentation. This continuity ensures that the fund's ethical framework remains intact, even as it transitions to a structure that may improve liquidity and transparency for investors.

BRIF, meanwhile, focuses on U.S. large-cap equities aligned with Christian values, emphasizing companies in "robust and sustainable profit cycles" as reported by AAI. While specific post-reorganization screening criteria for BRIF remain less detailed, the broader trend in FIS Trust reorganizations-such as the conversion of the First Trust Senior Floating Rate Income Fund II (FCT) into the First Trust Flexible Income ETF-suggests a focus on streamlining operations and reducing documentation burdens according to business wire reports. This aligns with the Federal Reserve's recent shift toward prioritizing material financial risks over procedural compliance, potentially allowing BRI funds to allocate more resources to refining their ethical screening processes as indicated in regulatory updates.

Portfolio Efficiency: Performance and Cost Considerations

For faith-based investors, portfolio efficiency hinges on balancing ethical constraints with financial returns. PRAY's year-to-date total return of 9.50% as of December 12, 2025 underscores its ability to outperform benchmarks like the MSCI World Index, aided by its GARP strategy and options-based downside protection. In contrast, BRIF's November 2025 return of -0.1% lags behind the 0.3% average for its Large Blend category, raising questions about its risk-adjusted performance according to AAI data. However, BRIF's expense ratio of 0.66%, though 57% higher than the category average, reflects the costs of active management and ethical screening as detailed in fund reports.

The reorganization of both funds into the FIS Trust structure may address such inefficiencies. For example, the FCT-to-Flexible Income ETF transition-a closed-end fund to ETF conversion-aims to reduce operational complexity and align with ETF-specific advantages like intraday trading as reported by business wire. While BRIF's post-reorganization expense ratio remains undisclosed, similar reorganizations often aim to lower costs through economies of scale. Additionally, the SEC's 2026 Exam Priorities emphasize fiduciary duties and best execution standards, which could incentivize FIS Trust to optimize its investment strategies further as outlined in regulatory commentary.

Broader Implications for Faith-Based Investing

The reorganizations also reflect a maturing market for faith-based ETFs. Assets in such funds have surpassed $100 billion, driven by growing demand for values-aligned portfolios as reported by faith investment organizations. However, performance variability persists: while some BRI funds outperform industry averages, others, like BRIF, struggle to match benchmarks as noted in AAI analysis. This underscores the importance of due diligence in evaluating both ethical alignment and financial metrics.

For investors, the FIS Trust reorganizations present a dual opportunity. Structurally, they enhance transparency and liquidity, critical for attracting new capital. Strategically, they reinforce the feasibility of long-term capital appreciation within ethical constraints. As noted by the Christian Investment Forum (CIF), BRI funds have historically outperformed industry averages by 77 basis points annually, suggesting that ethical screening need not compromise returns according to a CIF study.

Conclusion

The reorganization of PRAY and BRIF into the FIS Trust marks a significant step in the evolution of faith-based investing. By maintaining rigorous ethical criteria while pursuing operational efficiencies, these funds address the dual imperatives of value alignment and portfolio performance. For investors, the challenge lies in assessing whether these structural changes translate into tangible benefits-lower costs, improved returns, or enhanced risk management-without diluting the core principles that define BRI strategies. As regulatory frameworks and market dynamics continue to evolve, the FIS Trust's reorganizations offer a compelling case study in the strategic adaptation of values-driven portfolios.