Timothy Plan holds a unique distinction in the world of faith-based investing: it was the first mutual fund family created specifically to screen investments according to biblical values. Founded in 1994 by Art Ally, a veteran financial advisor with decades of Wall Street experience, Timothy Plan pioneered the concept of biblically responsible investing (BRI) before the term even existed. Today, with approximately $3 billion in assets under management across more than a dozen mutual funds and a growing suite of ETFs, Timothy Plan remains a significant force in the faith-based investing landscape—even as newer competitors have reshaped the market around it. This review examines Timothy Plan’s complete fund lineup, screening methodology, fee structure, performance track record, and how it compares to other Christian investment providers.
Company History and Founding Story
Art Ally spent eight years as a vice president and branch manager at Shearson Lehman Brothers in Boca Raton, Florida, accumulating deep experience in the financial services industry. In 1990, he founded Covenant Financial Management, and by 1994 he had launched Timothy Plan—named after the apostle Paul’s young protégé Timothy, who was charged with faithfully managing what had been entrusted to him. The fund family was born from Ally’s conviction that Christians were unknowingly investing in companies whose products and practices contradicted their faith.
At the time, no investment product existed that systematically screened companies based on biblical moral standards. The socially responsible investing (SRI) movement of the 1970s and 1980s had established the concept of values-based screening, but its criteria were rooted in secular progressive values rather than biblical principles. Ally recognized that millions of Christian investors were funding companies involved in abortion, pornography, gambling, and other industries they would never support with their charitable giving—simply because no one had created an investment vehicle that filtered for these concerns.
Headquartered in Maitland, Florida, Timothy Plan has grown steadily over three decades, now managing approximately $2.99 billion in total assets across five asset classes with more than 40 individual money managers overseeing various portfolio strategies. The firm’s 30-year track record makes it the longest-operating biblically responsible fund family in existence—a credential that carries real weight for investors who value institutional stability and demonstrated commitment to the faith-based investing mission.
Screening Methodology: The eVALUEator
Timothy Plan’s investment screening process is built around a proprietary tool called the eVALUEator, which systematically evaluates publicly traded companies against biblical moral standards. The eVALUEator has identified approximately 1,260 publicly traded companies that fail Timothy Plan’s moral screening criteria—companies that are then excluded from all Timothy Plan funds and ETFs.
The screening covers several categories of corporate involvement that Timothy Plan considers incompatible with biblical values. Abortion is perhaps the most prominent screen: companies that directly perform, facilitate, or provide financial support to abortion providers are excluded. This screen extends beyond healthcare companies to include any corporation that provides significant funding to organizations like Planned Parenthood. Pornography screening excludes companies that produce, distribute, or profit from pornographic or sexually explicit content, including media and entertainment companies with significant involvement in adult content.
Gambling exclusions cover casinos, riverboat gambling operations, equipment manufacturers, gambling software developers, and cruise lines with significant gambling operations. Alcohol and tobacco screening targets companies involved in the production and manufacturing of these products, though the screen focuses primarily on producers rather than retailers. Companies that promote what Timothy Plan describes as “non-married lifestyles” or “anti-family entertainment” are also excluded, as are companies found to violate child labor laws or provide support to nations designated as state sponsors of terrorism by the United States government.
The comprehensiveness of Timothy Plan’s screening is one of its distinguishing characteristics. While some faith-based providers apply relatively narrow screens (GuideStone, for example, excludes only about 15 companies from the S&P 500), Timothy Plan casts a wider net, identifying over 1,200 companies across its screening categories. This broader approach means Timothy Plan portfolios have greater deviation from conventional benchmarks—which can affect both performance and diversification.
One important nuance: Timothy Plan’s screens focus primarily on direct involvement rather than secondary or tertiary connections. A company that manufactures alcohol would be excluded, but a grocery chain that sells alcohol alongside thousands of other products generally would not. This approach balances moral rigor with practical investability, though investors seeking the strictest possible interpretation may find that some borderline companies pass through Timothy Plan’s filters.
Mutual Fund Lineup
Timothy Plan offers a comprehensive suite of mutual funds spanning the major asset classes and investment styles that most investors need for a diversified portfolio. Each fund applies identical biblical screening through the eVALUEator tool, with the investment strategy and stock selection handled by one or more of the firm’s 40-plus sub-advisors.
Timothy Plan Large/Mid Cap Growth Fund (TLGAX). This fund targets growth-oriented large and mid-cap U.S. companies that pass biblical screening. Recent performance shows a one-year return of approximately 6.86%, with three-year and five-year annualized returns of 7.46% and 9.43% respectively. The expense ratio runs approximately 1.48% for Class A shares, placing it in the higher range among both conventional and faith-based peers.
Timothy Plan Large/Mid Cap Value Fund (TLVAX). The value counterpart focuses on undervalued large and mid-cap companies. Performance has been solid with a one-year return of approximately 2.20%, three-year annualized return of 8.70%, and five-year return of 8.23%. Like its growth sibling, the expense ratio sits around 1.48%.
Timothy Plan Small Cap Value Fund (TPLNX). Targeting smaller companies with value characteristics, this fund carries a slightly higher expense ratio of approximately 1.58%, reflecting the additional research costs associated with small-cap investing. The fund returned approximately 4.73% in calendar year 2024.
Timothy Plan International Fund (TPIAX). For investors seeking non-U.S. equity exposure with biblical screening, this fund provides international diversification. Returns have ranged from approximately 10.49% to 17.12% depending on the time period measured. The expense ratio is higher at approximately 1.72%, reflecting the added costs of international research and screening.
Timothy Plan Fixed Income Fund (TFIAX). The bond fund offers intermediate-term fixed income exposure with a current dividend yield of approximately 3.13%. With an expense ratio of 1.07%, it screens corporate bond issuers for biblical alignment while maintaining the income generation and stability that bond investors expect. Year-to-date performance in 2025 was approximately 2.40%.
Timothy Plan High Yield Bond Fund (TPHAX). For investors willing to accept higher credit risk in exchange for greater income, the high yield bond fund targets below-investment-grade corporate bonds from companies that meet Timothy Plan’s moral standards. Expense ratios run approximately 1.15-1.20% for Class A shares.
Timothy Plan Israel Common Values Fund (TPAIX). One of Timothy Plan’s most distinctive offerings, this fund invests in Israeli companies and companies with significant operations in Israel, reflecting the firm’s pro-Israel stance rooted in biblical principles. Performance has been noteworthy: the fund has outperformed its ACWX benchmark by approximately 3.2% annualized over a ten-year period. The expense ratio is 1.72%.
Timothy Plan Growth & Income Fund (TGIAX). This balanced-style fund combines growth and income objectives, targeting companies with both capital appreciation potential and dividend payments. One-year return is approximately 7.77%, with three-year and five-year annualized returns of 3.97% and 3.99%. Expense ratio is approximately 1.34%.
Timothy Plan Defensive Strategies Fund (TPDAX). This fund has been one of Timothy Plan’s strongest recent performers, employing defensive investment strategies that have produced impressive returns: approximately 36.70% over one year, 17.02% annualized over three years, and 11.24% over five years. The expense ratio is 1.24%.
Timothy Plan Strategic Growth and Conservative Growth Funds. These asset allocation funds (TSGAX and TCGAX) provide one-fund solutions at different risk levels. Strategic Growth carries a 0.94% expense ratio, while Conservative Growth runs approximately 1.00%—among the lowest in the Timothy Plan lineup.
ETF Lineup
Recognizing the industry shift toward lower-cost, tax-efficient exchange-traded funds, Timothy Plan launched a suite of ETFs that apply the same eVALUEator screening in a passively managed, index-tracking structure. The ETFs track custom BRI-screened indices constructed in partnership with Victory Capital.
Timothy Plan US Large/Mid Cap Core ETF (TPLC). This ETF tracks the Victory US Large Cap Volatility Weighted BRI Index, providing broad large and mid-cap U.S. equity exposure with biblical screening. At 0.52% expense ratio, it costs roughly one-third of what Timothy Plan’s comparable mutual funds charge—a significant savings that makes biblical screening accessible to cost-conscious investors.
Timothy Plan High Dividend Stock ETF (TPHD). Tracking the Victory US Large Cap High Dividend Volatility Weighted BRI Index, this ETF targets high-dividend-paying U.S. companies that meet biblical standards. The 0.52% expense ratio provides income-focused investors with a more affordable alternative to Timothy Plan’s mutual fund offerings.
Timothy Plan US Small Cap Core ETF (TPSC). This small-cap ETF tracks the Victory US Small Cap Volatility Weighted BRI Index at a 0.52% expense ratio. It provides small-cap exposure that would cost approximately three times more through Timothy Plan’s Small Cap Value mutual fund.
Timothy Plan International ETF (TPIF). The international ETF tracks the Victory International Volatility Weighted BRI Index at 0.62%, offering non-U.S. equity exposure at roughly one-third the cost of the Timothy Plan International mutual fund. The slightly higher expense ratio compared to the domestic ETFs reflects international investing costs.
The ETF lineup addresses Timothy Plan’s most significant historical weakness: high fees. With an average ETF expense ratio of approximately 0.55%, these products bring Timothy Plan’s screening into a price range that is more competitive with the broader market—though still higher than Inspire’s most affordable ETF (PTL at 0.09%) or other low-cost Christian ETFs.
Expense Ratios: The Elephant in the Room
Any honest review of Timothy Plan must address the fee question directly, because it represents the firm’s most significant competitive disadvantage. Timothy Plan’s mutual funds consistently rank in the most expensive quintile among their category peers, according to Morningstar. The average mutual fund expense ratio across the Timothy Plan lineup runs approximately 1.15-1.72%, compared to conventional index funds at 0.03-0.10% and even some faith-based alternatives at considerably lower levels.
This fee premium matters enormously over long time horizons. An investor paying 1.48% annually instead of 0.52% (Timothy Plan’s own ETF rate) sacrifices roughly 0.96% per year in returns to fees. Over 30 years on a $100,000 investment growing at 8% annually, that fee difference compounds to approximately $130,000 in lost wealth—a staggering sum that must be weighed against whatever value the mutual fund structure provides over the ETF.
Timothy Plan’s ETFs have significantly narrowed this gap, offering biblical screening at 0.52-0.62%—competitive within the faith-based space, though still materially above the cheapest secular alternatives. For investors who want Timothy Plan’s screening methodology, the ETFs represent the clear value play. The mutual funds may still be preferable for investors who value active management, believe the sub-advisory structure can add alpha, or invest through retirement plan platforms that don’t offer ETFs.
Morningstar has assigned Timothy Plan a “Low Parent Pillar rating,” citing the firm’s high fees and noting that the expense ratios create a structural headwind that makes outperformance difficult. This is a fair criticism that prospective investors should weigh carefully—particularly given that lower-cost alternatives with comparable biblical screening now exist from providers like Inspire.
Performance Assessment
Timothy Plan’s performance record is mixed, as one would expect from any active management firm operating with additional screening constraints and above-average fees. Some funds have delivered strong results: the Defensive Strategies Fund’s three-year annualized return of 17.02% and the Israel Common Values Fund’s benchmark-beating ten-year record demonstrate that biblical screening and competitive performance are not mutually exclusive.
However, several funds have struggled to keep pace with conventional benchmarks after fees. The Conservative Growth Fund’s five-year annualized return of 1.77% and three-year return of -0.15% illustrate how the fee headwind can erode returns, particularly in more conservative strategies where absolute return expectations are lower. When a fund charges 1.00% and targets modest returns, there is very little margin for error.
The ETFs, being passively managed and lower-cost, generally track their custom BRI indices more closely and face less fee-related drag. For investors focused primarily on performance relative to cost, the ETFs offer a more compelling value proposition than the mutual funds.
Strengths and Advantages
Pioneer credibility and track record. Thirty years of continuous operation as the original Christian fund family carries genuine weight. Timothy Plan has navigated multiple market cycles, economic crises, and industry transformations while maintaining its biblical screening commitment. For investors who value institutional stability and proven dedication to the faith-based investing mission, this track record is unmatched.
Comprehensive screening. With over 1,200 companies identified and excluded, Timothy Plan applies one of the broadest biblical screens in the industry. Investors who want thorough values alignment—not just symbolic exclusions—may find Timothy Plan’s approach more satisfying than providers that screen out only a handful of companies.
Complete fund lineup. Timothy Plan offers funds across every major asset class: U.S. large-cap, mid-cap, and small-cap equity (both growth and value), international equity, fixed income, high yield bonds, balanced/allocation strategies, and a unique Israel-focused fund. This breadth allows investors to build a fully diversified, all-Timothy-Plan portfolio if they choose.
Multi-manager approach. With more than 40 sub-advisors managing various strategies, Timothy Plan benefits from diverse investment perspectives and specializations. This structure reduces the key-person risk that affects firms like Eventide, where a single portfolio manager dominates the investment process.
ETF availability. The addition of lower-cost ETFs has dramatically improved Timothy Plan’s value proposition, giving cost-conscious investors access to the firm’s screening at roughly one-third the mutual fund price.
Limitations and Considerations
High mutual fund fees. This remains Timothy Plan’s most significant competitive weakness. Mutual fund expense ratios of 1.15-1.72% create meaningful headwinds to performance and place the funds at a structural disadvantage against both secular and faith-based alternatives. The ETFs partially address this, but the mutual funds remain the firm’s primary product line by assets.
Morningstar stewardship concerns. Morningstar’s Low Parent Pillar rating reflects concerns beyond just fees—it suggests the research firm has identified broader stewardship issues that investors should investigate. This rating carries weight as an independent, third-party assessment of the fund family’s overall investor-friendliness.
Negative-only screening approach. Timothy Plan focuses exclusively on what it avoids—it does not incorporate the positive “embrace” and “engage” components that characterize providers like Eventide or the impact-focused approach of Inspire. For investors who want their funds to actively seek out companies doing good in the world (rather than simply excluding companies doing harm), Timothy Plan’s methodology may feel incomplete.
Limited transparency on screening decisions. While Timothy Plan publishes its screening categories, it provides less public-facing detail about individual company screening decisions compared to providers like Inspire (which publishes Impact Scores for every company) or Eventide (which describes its Business 360 methodology in considerable depth).
ETF expense ratios still above cheapest alternatives. At 0.52-0.62%, Timothy Plan’s ETFs are competitive within the faith-based space but remain significantly more expensive than Inspire’s PTL ETF at 0.09% or conventional index ETFs at 0.03-0.10%. Cost-conscious investors may find better value elsewhere while still achieving meaningful biblical screening.
Who Should Consider Timothy Plan
Timothy Plan is best suited for conservative Christian investors who prioritize comprehensive biblical screening with a pro-life, pro-family, pro-Israel values framework and who value the credibility of a 30-year track record in faith-based investing. The fund family works well for investors who want a single provider offering diversified funds across all major asset classes, those who appreciate the multi-manager structure that reduces key-person risk, and investors who specifically value the Israel Common Values Fund or the Defensive Strategies Fund—products with no direct equivalents from competitors.
Timothy Plan may not be the best fit for fee-sensitive investors who prioritize the lowest possible expense ratios (consider Inspire’s ETFs), investors who want positive screening that actively seeks companies contributing to human flourishing (consider Eventide), church organizations and ministry workers who need integrated retirement plans with Ministers’ Housing Allowance support (consider GuideStone), Catholic investors seeking denomination-specific screening (consider Ave Maria Funds), or investors who want a transparent, quantifiable scoring system for individual companies (consider Inspire’s Impact Score).
The Bottom Line
Timothy Plan deserves respect as the pioneer of biblically responsible investing and credit for maintaining its mission consistently across three decades of market cycles and cultural shifts. The fund family’s comprehensive screening, broad product lineup, and recent ETF expansion provide Christian investors with a legitimate option for values-aligned portfolio construction across every major asset class.
The fee question, however, is real and cannot be dismissed. In a market where Inspire offers biblical screening at 0.09% and conventional index funds charge pennies on the dollar, Timothy Plan’s mutual fund fees of 1.15-1.72% represent a meaningful drag on long-term wealth building. The ETFs at 0.52-0.62% offer a much more competitive alternative for investors committed to Timothy Plan’s screening approach.
For investors who view Timothy Plan’s screening methodology as uniquely aligned with their values—and who appreciate the institutional stability of the longest-operating faith-based fund family—Timothy Plan remains a viable choice, particularly through its ETF lineup. As with all investment decisions, Timothy Plan should be evaluated as one component of a broader stewardship strategy that includes disciplined budgeting, freedom from debt, generous giving, and the conviction that our financial decisions should reflect the values we profess.