Alternative Investments/ESG: Investment Advisory Wahed Launches Shariah And US Equity ETP

The Wahed FTSE USA Shariah ETP launched on the LSE.

A new ETP (Exchange Traded Product) launched by Wahed, a registered investment advisor focused on Halal investments, will invest in US stocks that have passed through a screening process to determine their Shariah status. The ETP, named the Wahed FTSE USA Shariah ETF, has listed on the LSE. (ETF Strategy)

Shariah ETF for US Stocks

Wahed teamed with ETP specialist Leverage Shares to bring the new ETF to market.

Leverage Shares is a European provider of leveraged and inverse exchange traded products (ETPs), offering experienced traders magnified exposure, and efficiency when buying stocks on leverage. It claims to be the only provider in Europe that offers physical replication of leveraged and inverse ETPs.

The ETF will invest 100% in the US-listed Wahed FTSE USA Shariah ETF (NASDAQ: HLAL) which Wahed launched in July 2019. The ETP has an expense ratio of 0.55%.

HLAL is linked to the FTSE USA Shariah Index the components of which are drawn from the FTSE USA Index after screening by Yassar Research for Shariah compliance based on their business activities and select financial ratios. Yassar is the index provider FTSE Russell’s Shariah consultant.

Screening for Shariah eliminates companies engaged in : conventional finance (non-Islamic banking, finance, insurance, etc), alcohol, pork-related products, non-halal food production, entertainment (casinos, gambling, and pornography), tobacco, weapons, and defence manufacturing.

Major holdings of the ETF include Apple (NASDAQ: AAPL) – 15.8%, Microsoft (NASDAQ: MSFT) – 11.7%, Tesla (NASDAQ: TSLA), Exxon Mobil (NYSE: XOM) – 3.1%, and Johnson & Johnson (NYSE: JNJ) – 3.1%.

Related Story: Chimera Capital Launches Shariah Turkish Equity ETF

Photo by Artur Aldyrkhanov on Unsplash

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