Behind the Ticker: Crossmark's Values-Based ETFs

Bob Doll, CEO and CIO of Crossmark Global Investments, discussed his long tenure in asset management, including roles as chief equity strategist and CIO at Nuveen and BlackRock, on Behind the Ticker. Crossmark, established in 1987, has always focused on values-based investing, distinct from traditional ESG investing through their "avoid, embrace, engage" framework.

This approach excludes harmful companies, rewards those with positive societal impact, and engages with companies on the fence to promote change. Doll highlighted the two flagship ETFs, the Crossmark Large Cap Growth ETF (CLCG) and Crossmark Large Cap Value ETF (CLCV), launched in July 2025 as some of the first actively managed, faith-based large cap products.

The strategy combines 75% quantitative multi-factor scoring with 25% values-based scoring, recalculated daily. Doll emphasized that return on equity and price-to-free-cash-flow are currently the most significant factors, particularly in a long economic cycle with high valuations. The firms also overweight financials due to cheap valuations and improved bank balance sheets, while underweighting consumer staples and healthcare.

Doll observed that value funds have outperformed growth this year after a prolonged period of growth dominance. Inflation remains the key variable to watch for 2027, as the Fed has missed its 2% inflation target for six consecutive years. Doll sees ETFs as crucial for Crossmark's future and plans to introduce more products once CLCG and CLCV are established.