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The Vatican Bank launched two stock indexes on Tuesday that track stocks consistent with Catholic values. Its first foray into thematic investment products prepares the bank to potentially launch more financial products, including ETFs, in the future.
The bank, which reports to the Committee of Cardinals and the Pope, said in a statement on Tuesday that the Morningstar IOR Eurozone Catholic Principles Index and the Morningstar IOR US Catholic Principles Index include 50 medium and large companies that are considered consistent with Catholic ethical criteria, including prioritizing human bonds and social justice.
“By establishing benchmarks according to recognized Catholic ethical criteria, we can make our performance assessment and reporting processes even more rigorous and transparent,” Giovanni Boscia, deputy general director and CFO of the Vatican Bank, said in the statement. “This initiative reaffirms our commitment as a financial institution serving the church and further strengthens the role of the church [Vatican Bank] as a reference point for the Catholic world.”
The Eurozone fund counts semiconductor suppliers ASML Holding and telecommunications company Deutsche Telekom are among its top holdings, while the US-based index’s largest holdings include: Metaplatforms And Amazon.
Their introduction also opens up the possibility of licensing the indices for use in an exchange-traded fund.
The debut comes at a time when investor appetite for ETFs and other thematic investment products is growing. According to PricewaterhouseCoopers, the global ETF market grew nearly 30% to over $14 trillion in 2024. According to a March 2025 PwC report, the total value of these funds could reach as much as $30 trillion by 2029.
Investment products based on social responsibility and other themes are now attractive to certain classes of investors. Ave Maria Mutual Funds, a family of funds that allocates capital in accordance with Catholic teachings, said it had $3.8 billion in assets under management last year, according to its website.
After a series of scandals, the Vatican Bank is working to reform its image. The Holy See-linked financial institution has been indicted on multiple occasions for money laundering and ties to organized crime, particularly after the collapse of Milan-based Banco Ambrosiano in 1982. In 2021, former Vatican Bank President Angelo Caloia was found guilty of money laundering and embezzlement of millions of euros in connection with his role at the institution.