Praxis Mutual Funds: The Mennonite Approach to Faith Investing

Most people who hear "faith-based investing" think of evangelical Christian funds like Inspire or Timothy Plan, or Islamic funds like Amana, or Catholic funds like Ave Maria. What often gets left out is the Mennonite and broader Anabaptist tradition, which has its own distinctive approach to faith-based investing that emphasizes peace, justice, and community well over exclusion-focused screening.

Praxis Mutual Funds is the fund family that brings that Anabaptist approach to the market. It's quieter than the evangelical options, smaller than the Catholic ones, but worth understanding because the underlying philosophy is different in interesting ways.

The Anabaptist Philosophy

Anabaptist traditions (which include Mennonites, Brethren, and Amish among others) trace back to the 16th century Radical Reformation. Distinctive theological commitments include pacifism (historically called the peace witness), simple living, community accountability, and an emphasis on justice and nonviolence as central to Christian discipleship.

When you apply those commitments to investing, you get a framework that looks different from mainstream BRI. Mennonite investing tends to care a lot about military contractors and weapons manufacturers (avoided), companies with poor labor practices (avoided), environmental stewardship (a positive screening factor), and community development (positively weighted). It cares less about alcohol and tobacco exclusions compared to evangelical screens, though those are often included anyway.

The result is a framework that overlaps significantly with mainstream ESG and SRI investing, not just with conservative Christian exclusion lists. Praxis positions itself accordingly.

Who Runs Praxis

Praxis Mutual Funds is operated by Everence Financial, which is the financial services arm of Mennonite Church USA and related Anabaptist communities. Everence (formerly called Mennonite Mutual Aid) was founded in 1945 and has been providing insurance, banking, and investment services to Mennonites and similar communities for decades.

The Praxis fund family was launched in 1994, making it roughly as old as Timothy Plan. The funds are managed in partnership with sub-advisors including Boston Trust Walden for some strategies and Willis Johnson for others, with Praxis providing the screening methodology and investment philosophy.

The Praxis Fund Family

Praxis offers several funds covering the major asset classes:

Praxis Growth Index Fund (MGNDX / MGNIX) - Large-cap growth index fund with Praxis screens applied. Expense ratio approximately 0.90 percent for the Class A share, 0.65 percent for Institutional.

Praxis Value Index Fund (MVIAX / MVIIX) - Large-cap value version. Similar expense ratios.

Praxis Small Cap Index Fund (MMSCX / MMSIX) - Small-cap version of the methodology. Expense ratio around 1.00 percent Class A.

Praxis International Index Fund (MPLAX / MPLIX) - International developed markets. Expense ratio around 1.10 percent Class A.

Praxis Impact Bond Fund (MIIAX / MIIIX) - Fixed income fund with Praxis screens on corporate issuers. Expense ratio around 0.80 percent Class A.

Praxis Genesis Portfolios - Fund of funds options (Genesis Balanced, Growth, and Conservative) that combine Praxis funds into target allocations.

So you can build a complete Praxis portfolio covering US large growth, US large value, US small cap, international, and bonds all with aligned screening. Few faith-based fund families offer that kind of complete coverage.

Screening Approach

Praxis screens across several dimensions:

Negative screens: alcohol production, tobacco production, weapons manufacturing (particularly military weapons), gambling, adult entertainment, nuclear power in some contexts, and companies with significant environmental violations or labor abuses.

Positive screens: community development, environmental stewardship, workplace diversity and equity, and labor practices.

Community investing: A portion of fund assets can be directed toward community development financial institutions (CDFIs) that serve low-income communities. This is distinctive to Praxis and reflects the Anabaptist commitment to supporting marginalized communities.

Shareholder engagement: Praxis actively engages with portfolio companies on social and environmental issues, filing shareholder resolutions and voting proxies in line with their values. This is more engagement-heavy than most faith-based funds.

The AUM Reality

Praxis is smaller than most of its faith-based peers. Total assets across the fund family are approximately 1.5 to 2 billion dollars as of early 2026. Individual funds range from around 200 million to 500 million in assets.

Why smaller? A few reasons. The Mennonite community is smaller than evangelical Protestant communities. Praxis hasn't invested as heavily in marketing and advisor channels as Ave Maria or Inspire. And the Praxis approach overlaps heavily with mainstream ESG funds, which means Mennonites looking for ESG can just buy a cheap ESG ETF instead of the slightly more expensive Praxis version.

Performance Estimates

I'll cover the Growth Index Fund (MGNDX) as a representative example since it's the flagship equity option.

One-year total return: approximately 20 to 24 percent. The growth fund participated in the 2025 tech rally.

Three-year annualized: approximately 12 to 15 percent.

Five-year annualized: approximately 11 to 13 percent.

Ten-year annualized: approximately 10 to 12 percent.

Since inception (varies by fund, mostly 1990s): approximately 8 to 10 percent annualized across funds.

The performance has been reasonable but not stellar. Praxis funds generally track their benchmarks closely because they use index-like methodologies with screening overlays. They won't shock you with upside or downside.

Comparison to Mainstream ESG

Here's the interesting question. Praxis screens look a lot like what a mainstream ESG fund would do. So why not just buy iShares MSCI USA ESG Select ETF (SUSA) for 0.25 percent instead of Praxis for 0.90 percent?

For many investors, that's actually a valid question. ESG ETFs have gotten cheap enough that the cost premium for Praxis is hard to justify on pure economics.

What Praxis offers that mainstream ESG doesn't: explicit grounding in Anabaptist Christian theology rather than purely secular ESG frameworks, community investing through CDFIs, a shareholder engagement program informed by Mennonite values, and a nonprofit-connected structure (Everence is a benefit-community organization, not purely a for-profit asset manager).

Whether those differences justify the cost premium depends on how much you value them. For committed Mennonites who want their investments housed within their community's financial institutions, Praxis is an obvious choice. For non-Mennonite investors who just want ESG exposure, the cheaper iShares and SPDR options probably make more sense.

Tax Considerations

Praxis funds are structured as traditional mutual funds and distribute capital gains annually. The index-oriented strategies have lower turnover than active funds, so gains distributions are smaller than you'd see from something like Eventide or Ave Maria active funds.

The Community Investing Angle

This is genuinely distinctive. Praxis directs a small percentage of each fund's assets toward community development financial institutions. These CDFIs then lend to underserved communities (small businesses, affordable housing, community facilities) at rates that prioritize social impact over maximum return.

This creates a small performance drag (the CDFI investments yield less than market-rate investments) but aligns with the Anabaptist commitment to supporting marginalized communities. For investors who value community impact, this is a feature rather than a bug.

The Mennonite Value Proposition

Praxis isn't really trying to beat the market. It's trying to give Mennonites and aligned investors a way to keep their money working in line with their values without supporting companies or practices they consider contrary to the Christian witness. That's a different proposition than "maximum returns with some screening."

If you think of investing purely as return maximization, Praxis will seem expensive and unnecessary. If you think of investing as stewardship of resources entrusted to you, with specific ethical obligations about how those resources are used, Praxis fits that framework.

Who Praxis Makes Sense For

Mennonites, Brethren, and other Anabaptist Christians who want their investments housed within their community's financial institutions. Investors who value community investing through CDFIs as part of their portfolio. Anyone who appreciates the shareholder engagement approach and wants their fund manager actively pushing companies on social and environmental issues. Christians whose values align with mainstream SRI/ESG but who want explicit Christian theological framing.

Who Should Look Elsewhere

Cost-sensitive investors who can accept secular ESG ETFs at much lower fees. Evangelical Christians who want more explicit Christian screening focused on life and marriage issues (Praxis is less focused on those than Timothy Plan or Inspire). Investors who don't care about the Anabaptist framework or community investing angle.

Bottom Line

Praxis Mutual Funds represent a distinctive and thoughtful approach to faith-based investing that draws from Mennonite theology and commitments. The fund family covers all the major asset classes, is managed by a respected community-based financial institution, and incorporates features (community investing, shareholder engagement) that are rare in other faith-based fund families.

The trade-off is cost. Praxis funds are more expensive than comparable ESG ETFs from iShares or SPDR that screen on similar criteria. For committed Mennonites and Anabaptists, that cost premium supports the community's own financial institution and aligns investments with their specific theological tradition. For other investors, cheaper alternatives may deliver similar outcomes.

If you're a Mennonite, Praxis is probably your default choice for faith-based investing. If you're not, Praxis is worth understanding as an example of a different model of faith investing, but you might find your values better served by cheaper options.