If you're a Catholic investor looking for income and you want your fund manager to actually follow the US Conference of Catholic Bishops guidelines rather than a vague "Christian values" approach, there are basically two fund families you need to know about: Ave Maria Mutual Funds and a handful of Catholic-sponsored options.

Ave Maria is the bigger of the two. The firm runs roughly six funds total and manages several billion dollars. The Rising Dividend Fund (AVEDX) is their income-oriented flagship. Let's actually dig into it.

Ave Maria Mutual Funds Background

Ave Maria Mutual Funds is operated by Schwartz Investment Counsel, a Michigan-based firm founded in 1980 by George Schwartz. The Catholic Advisory Board, which provides the screening guidance, has historically included high-profile Catholics like Cardinal Edmund Szoka, Larry Kudlow, Phyllis Schlafly, and Lou Holtz. That board gives Ave Maria a distinctive Catholic intellectual credibility that other faith-based firms don't have.

The firm launched its first fund in 2001 and has been growing steadily since. Ave Maria screens using criteria based on USCCB guidelines, specifically the bishops' socially responsible investing guidelines that exclude companies involved in abortion, pornography, and certain other activities contrary to Catholic moral teaching.

The Ave Maria Screening Approach

Ave Maria excludes companies involved in:
- Abortion (direct or material cooperation)
- Pornography production or distribution
- Embryonic stem cell research
- Companies that provide benefits to unmarried partners in ways the firm considers to conflict with Catholic teaching on marriage
- Companies that support Planned Parenthood financially

Notably absent from the exclusion list: alcohol, tobacco, and gambling. Catholic moral teaching is less strict on these categories than evangelical Christian approaches, which is why Ave Maria funds can hold breweries, distilleries, and gaming companies that Inspire or Timothy Plan would exclude.

This is one of the biggest differences between Catholic BRI and evangelical BRI. Catholics have traditionally been more comfortable with moderate consumption of alcohol (Jesus at the wedding at Cana and all that) and less focused on entertainment exclusions. The Catholic screening is narrower but more directly tied to sanctity of life and marriage issues.

What AVEDX Actually Holds

AVEDX is an actively managed mutual fund focused on dividend-paying stocks. The fund holds 40 to 60 names typically, with a quality and dividend growth tilt.

Top holdings historically include: Eli Lilly, Microsoft, Apple, Abbott Laboratories, Texas Instruments, Home Depot, Procter & Gamble, Costco, Linde, and Oracle. The portfolio is skewed toward large-cap dividend growers with strong balance sheets and consistent free cash flow.

Sector breakdown is roughly: 22 to 28 percent technology, 18 to 22 percent healthcare, 15 to 18 percent industrials, 10 to 14 percent consumer staples, 8 to 12 percent consumer discretionary, with smaller slices in energy, materials, and communication services.

Notice that unlike halal funds, AVEDX can hold some financial stocks because Catholic teaching doesn't prohibit interest in principle. You'll often see names like JPMorgan, Visa, or Mastercard in the portfolio when they pass the fund's other screens.

Expense Ratio: 0.92 Percent

AVEDX charges 0.92 percent per year. That's in the normal range for actively managed mutual funds with faith-based screening overhead. It's higher than Vanguard dividend funds (which run around 0.06 percent) but comparable to other faith-based mutual fund options.

The fund has no front-end load and no 12b-1 fees, which is an important distinction from some older faith-based mutual funds that still carry sales loads. You can buy AVEDX at no cost through most major brokerages.

AUM: Around 1.2 to 1.5 Billion Dollars

AVEDX is actually the largest Ave Maria fund by assets. It runs approximately 1.2 to 1.5 billion dollars as of early 2026. That's meaningful scale for a faith-based dividend fund. The broader Ave Maria family manages somewhere in the 3 to 4 billion dollar range.

Performance Estimates

One-year total return: approximately 14 to 18 percent. The fund lagged aggressive growth funds during 2025's tech rally but delivered solid returns for a quality dividend strategy.

Three-year annualized: approximately 10 to 13 percent.

Five-year annualized: approximately 11 to 13 percent.

Ten-year annualized: approximately 10 to 12 percent.

Since inception (May 2005): approximately 9 to 10 percent annualized. That's competitive with broad dividend indexes over similar periods.

AVEDX tends to lag the S&P 500 in strong growth years and keep pace in flat or down years. For a dividend-focused fund, that return pattern is typical. The fund isn't trying to beat the market in absolute terms; it's trying to deliver solid risk-adjusted returns with some income.

The Dividend Yield

AVEDX's current yield is approximately 1.5 to 2.0 percent. That's higher than growth funds but lower than pure high-dividend indexes like SCHD (which yields around 3.5 to 4 percent). The Ave Maria team emphasizes dividend growth and sustainability rather than maximum current yield, which is why you see names like Microsoft and Apple (low current yield, strong dividend growth) alongside more traditional dividend payers.

Distributions are paid quarterly, typically in March, June, September, and December. The quarterly schedule is convenient for income-focused investors who want regular cash flow.

The Catholic Advisory Board

One distinctive feature of Ave Maria funds is the Catholic Advisory Board. This board provides guidance on screening methodology and helps ensure the funds align with Catholic moral teaching. The board has historically included prominent conservative Catholic figures.

For some investors, the prominent Catholic names on the board are a selling point. For others, they reflect a particular political and theological stance that doesn't match every Catholic's views. Ave Maria's approach is generally aligned with more traditional or conservative Catholic positions rather than progressive Catholic social teaching.

If your Catholic identity leans toward social justice and Laudato Si'-style environmental stewardship, you might find Ave Maria's framework less complete than you'd want. The fund focuses heavily on life and marriage issues but doesn't do much with environmental or labor criteria. Those factors matter to many Catholics too but aren't part of Ave Maria's formal screening.

The Ave Maria Fund Family

Ave Maria runs several funds beyond AVEDX:
- Ave Maria Growth Fund (AVEGX)
- Ave Maria Value Fund (AVEMX)
- Ave Maria World Equity Fund (AVEWX)
- Ave Maria Bond Fund (AVEFX)
- Ave Maria Focused Fund (AVEAX)

Together the family covers most major asset classes for a complete Catholic portfolio. The Bond Fund is particularly useful because it gives Catholic investors a screened fixed income option without having to use conventional bond funds.

Comparison to CATH ETF

The other major Catholic fund option is CATH, the SPDR Bloomberg SASB Catholic Values US ETF from State Street. CATH is passive, market-cap weighted, and much cheaper (0.29 percent expense ratio) than AVEDX.

If you want broad market-like Catholic exposure, CATH is probably the better choice on cost grounds. If you want active management, a dividend focus, and a long-running fund with the Catholic Advisory Board structure, AVEDX offers something CATH doesn't.

Some Catholic investors hold both: CATH as the core broad exposure and AVEDX as a dividend-tilted overlay for income.

Tax Considerations

AVEDX is a mutual fund with annual capital gains distributions. The active management and dividend focus means turnover is moderate and distributions can be meaningful in taxable accounts. For tax efficiency, IRAs and 401(k)s are better homes for the fund.

The dividend income itself is generally qualified, so you pay qualified dividend rates (0, 15, or 20 percent depending on your bracket) rather than ordinary income rates on the payouts.

Who AVEDX Makes Sense For

Catholic investors who want active dividend-focused management and value the USCCB-aligned screening approach. Investors who appreciate the Catholic Advisory Board framework. People who want an income-oriented Catholic fund for retirement accounts or tax-advantaged wrappers. Anyone building a complete Ave Maria portfolio for family planning or legacy purposes.

Who Should Look Elsewhere

Cost-sensitive Catholic investors (CATH is cheaper). Catholics whose social teaching priorities include environmental and labor factors that Ave Maria doesn't screen for. Investors who prefer passive indexing and ETF structure over active mutual funds. Anyone in a high tax bracket holding in a taxable account who wants maximum tax efficiency.

Bottom Line

AVEDX is the flagship Catholic dividend mutual fund in the US and it does its job well. The fund is actively managed by a firm with Catholic roots, screens using USCCB-aligned criteria, holds quality dividend payers, and has delivered reasonable long-term returns.

The trade-offs are the standard active mutual fund concerns: higher fees than passive alternatives, capital gains distributions in taxable accounts, and dependence on the manager's judgment. For Catholic investors who want dividend income with their values and are comfortable with active management, AVEDX is a legitimate core holding.

If you're building a Catholic portfolio from scratch in 2026, I'd consider pairing AVEDX with CATH (for broad passive exposure) and a bond option (either Ave Maria Bond Fund or IBD for BRI-aligned fixed income). That combination gives you a complete Catholic multi-asset portfolio at a reasonable blended cost.

Ave Maria Rising Dividend Fund (AVEDX): The Catholic Dividend Strategy