ESG Fund With Faith-Based View Holds Stakes in Gun Companies (3)

At least one fund that calls itself ESG is bucking the industry trend by investing in makers of firearms.

Inspire Investing holds shares of Sturm Ruger & Co. and Vista Outdoor Inc. in its $110 million Inspire Small/Mid Cap ESG exchange-traded fund.

Owning gun stocks is an oddity for funds that say they focus on environmental, social and governance factors. In fact, MSCI Inc., the designer of the world’s largest ESG-focused indexes, excludes companies with links to civilian firearms, according to its website.

Robert Netzly, Inspire Investing’s chief executive officer, takes the view that firearms aren’t unethical or immoral ...