UMMA Profile
The Wahed Dow Jones Islamic World ETF is an actively managed exchange-traded fund (ETF) designed to provide investors with exposure to global equity securities while adhering to Shariah law. The fund exclusively invests in companies outside of the United States that meet Shariah compliance standards, as defined by subject-matter experts in Islamic finance. These criteria ensure that the companies' business practices and financial activities align with Islamic principles, including prohibitions on interest (riba) and excessive uncertainty (gharar).
The fund aims to replicate the performance of the Dow Jones Islamic Market International Titans 100 Index, which serves as its benchmark. This index includes the top 100 Shariah-compliant companies from various international markets, excluding the U.S. The adviser selects investments based on their alignment with the indexs criteria, striving to achieve returns that mirror those of the benchmark. This approach provides investors with a way to gain diversified exposure to large, Shariah-compliant companies across multiple global markets.
In addition to its adherence to Shariah principles, the fund follows a disciplined investment strategy focused on achieving returns consistent with the Dow Jones Islamic Market International Titans 100 Index. By investing in securities similar to the index components, the fund aims to offer investors an opportunity to participate in the growth of leading international companies while adhering to Islamic ethical standards.
The Wahed Dow Jones Islamic World ETF is classified as non-diversified, meaning it may have concentrated holdings in certain sectors or regions as dictated by the index's composition. This concentration can lead to higher volatility and potential risks compared to more broadly diversified funds. However, it also offers the potential for targeted exposure to high-quality, Shariah-compliant global equities, appealing to investors seeking to align their investments with Islamic values.
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