HLAL Profile
The Wahed FTSE USA Shariah ETF is designed to track the performance of U.S. large and mid-cap companies that adhere to Shariah principles, as determined by Islamic finance experts. The index underlying the ETF includes a selection of common stocks from companies that not only have substantial market capitalization but also comply with Shariah law. This compliance involves ensuring that the companies' activities and financial practices are consistent with Islamic ethical standards.
The ETF aims to invest at least 80% of its total assets in the securities that comprise the index. This focused investment approach ensures that the fund's portfolio is primarily aligned with Shariah-compliant companies. The selection process for the index is based on a rigorous evaluation to ensure that all included companies meet the criteria of Shariah compliance, which includes avoiding investments in industries such as alcohol, gambling, and interest-bearing financial services.
The Wahed FTSE USA Shariah ETF operates with a non-diversified strategy, concentrating its investments in a select group of Shariah-compliant large and mid-cap U.S. companies. This concentration allows the fund to maintain a portfolio that closely mirrors the index's characteristics, providing investors with exposure to companies that align with specific ethical and religious guidelines. The non-diversified nature of the fund may result in higher sensitivity to sector-specific risks but also offers a focused investment approach.
As a product of Wahed Invest, the Wahed FTSE USA Shariah ETF reflects the company's commitment to offering investment solutions that adhere to Islamic financial principles. By focusing on Shariah-compliant companies and adhering to a strict ethical investment framework, the ETF provides investors with an opportunity to participate in the U.S. equity market while maintaining alignment with their religious and ethical values. The fund's strategy and index composition reflect a blend of rigorous financial analysis and adherence to Shariah standards.
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