Generally, I'd say it's racist along the same lines as what dead0man said (and so many others also agreed with). Ethnoreligions are a tougher case; I'm generally inclined to give much more latitude, especially since I'm the living result of what happens when an ethnoreligious line of descent gets shunted off from one side of a family and spawns a bunch of confused, displaced, [Inks]ed-up descendants.
Yet ethnoreligion, at least amongst whites is pretty much a dead concept in the Upper Midwest and I don't see it causing us any problems.