Why should Canadian Christians choose a Canadian fund for biblically informed investing instead of a U.S. fund?
Canadian investors who hold U.S.-domiciled biblical funds face structural costs that erode returns: a non-recoverable 15% withholding tax on dividends, CRA T1135 foreign property reporting once holdings exceed $100,000, and currency conversion challenges. A Canadian-domiciled biblically informed fund can avoid many of these. The Capstone Biblically Informed Canadian Equity and U.S. Equity Funds are Canadian-dollar denominated, eligible for registered accounts, and available as both ETF and Canadian mutual fund trusts.
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The Capstone Biblically Informed Canadian Equity Fund (ETF Series - TSX:BIVC) holds Canadian dividend-paying companies and qualifies for the Canadian dividend tax credit, with no foreign reporting required.
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The Capstone Biblically Informed U.S. Equity Fund (ETF Series - TSX:BIVU) gives Canadian investors a Canadian-domiciled wrapper for U.S. equity exposure, which keeps those holdings off CRA Form T1135.
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Read on to see how each fund fits a Canadian Christian investor's portfolio and what the Canadian structure can save you.
A familiar story plays out across Canada every year. A Christian investor discovers biblically informed investment options in the U.S., gets excited, and starts exploring how to gain exposure. Then reality sets in. Some of these investments are not readily available to Canadian investors, while others come with structural or regulatory hurdles that add cost and complexity. Even when accessible, non-recoverable withholding tax on dividends (particularly in registered accounts) and foreign property reporting requirements can quietly erode returns.
Your conviction and values were right. There simply had not been a Canadian fund that aligns with Christian values and avoids these structural costs. That gap is exactly what Capstone Asset Management has managed.
If you are exploring biblically responsible investing in Canada, it is worth spending a few minutes at capstoneassets.ca or speaking with your financial advisor about the Capstone Biblically Informed Canadian Equity and U.S. Equity Funds before reading on.
Why U.S. Biblical Funds Cost Canadian Investors More
For years, they were the only real option for Canadian Christians who wanted professional biblical research applied to their equity portfolios. The issue was never their values. It was their address. U.S. funds were designed for U.S. investors, and when a Canadian holds them, structural costs and compliance burdens follow.
A Canadian-domiciled fund does more than feel familiar. It can save you money.
What's the Difference Between the Capstone Canadian and U.S. Biblically Informed Funds?
Understanding the distinction between the Capstone Biblically Informed Canadian Equity Fund and the Capstone Biblically Informed U.S. Equity Fund is important, because each one addresses different needs within a Canadian investor's portfolio.
The Canadian Fund: A Domestic Holding with Tax-Advantaged Income
The Capstone Biblically Informed Canadian Equity Fund is a domestic Canadian holding. Its dividends are paid by Canadian companies, which means they are eligible for the Canadian dividend tax credit. For Canadian taxpayers, that translates into a more favourable after-tax income compared to interest income or foreign dividends. Investors can access this fund simply and directly within Canada, through both ETF (TSX:BIVC) and mutual fund series, with no foreign reporting obligations and no currency conversion required.
The U.S. Fund: Canadian Access to the American Market
The Capstone Biblically Informed U.S. Equity Fund holds U.S. stocks, but it is structured as a Canadian fund. That distinction matters in several practical ways.
Because it is a Canadian fund, investors can buy it on the Canadian exchange through TSX:BIVU or through mutual fund series available via registered dealers. There is no need to open a U.S. brokerage account, convert currency through a broker, or navigate the complexity of purchasing directly on a U.S. exchange. For many individual investors, access to a U.S. exchange may not seem like a barrier. But for advisors, particularly those registered to sell mutual funds, U.S.-listed products are often simply not an option. A Canadian-domiciled fund with U.S. equity exposure solves that problem.
The other key advantage is in reporting and filing. In Canada, investors are required to report foreign holdings that exceed $100,000 on CRA Form T1135. With a growing investment portfolio, that threshold is easy to reach. Because the Capstone Biblically Informed U.S. Equity Fund is a Canadian fund, it does not count as a foreign holding for the purposes of T1135 reporting. That removes an annual compliance burden that many investors do not anticipate until it arrives.
While currency exposure remains, the Canadian structure provides a familiar, accessible wrapper around U.S. market exposure.
About Capstone's Biblically Informed Funds for Canadian Investors
Capstone Asset Management has been managing money for Canadians since 2004.
In October 2025, Capstone launched the Capstone Biblically Informed Canadian Equity Fund and the Capstone Biblically Informed U.S. Equity Fund, making the ETF series of these funds Canada's first biblically informed ETFs, listed on the Toronto Stock Exchange. Both funds are also available as mutual fund series through registered dealers across the country.
The Canadian fund focuses on dividend income from Canadian equities, while the U.S. fund provides growth-oriented exposure to the American market. Both are denominated in Canadian dollars, so you get broad equity participation without the structural drawbacks of holding U.S.-domiciled products.
Every stock in the fund goes through rigorous research rooted in four guiding principles:
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Valuing Human Life
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Stewarding Creation Responsibly
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Encouraging Human Flourishing
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Applying Biblical Wisdom
Capstone has also partnered with Brightlight Impact, an independent third-party research firm that performs independent analysis to support the decision-making process.
All stock selections are then reviewed and approved by Capstone's Biblically Informed Overlay (BIO) Committee, composed of four members with over 100 years of combined investment experience, including one independent member external to the firm. Research is compiled and submitted to this committee for review and approval before any stock is included in the fund.
Your Values. Your Country. Your Portfolio.
You have been looking for something that honours both your Christian values and your financial reality as a Canadian investor. The Capstone Biblically Informed Canadian Equity and U.S. Equity Funds were built for exactly that purpose, and they are Canadian from the ground up. Visit capstoneassets.ca to learn more, or speak with a qualified financial advisor about whether these funds belong in your portfolio. Faithful stewardship has always meant putting your resources where your convictions are.
Important Disclosures: Commissions, trailing commissions, management fees, and expenses may be associated with investments in mutual funds and exchange-traded funds. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed; their values change frequently, and past performance may not be repeated. The simplified prospectus, fund facts, and ETF facts are available on SEDAR+ at www.sedarplus.ca or consult with a registered investment dealer or advisor.
