Alternative Investments/ESG: SP Funds Unveils Shariah-Compliant Global Tech ETF

“SPTE is a great way to mitigate against interest rate risk, offering investors greater financial stability, reduced risk exposure, and the potential for higher returns exposure to companies amidst significant debt obligations.” – Naushad Virji CEO SP Funds

SP Funds has expanded its suite of Sharia-compliant funds with the launch of The SP Funds S&P Global Technology ETF (SPTE) on the New York Stock Exchange. As North America’s largest family of Shariah-compliant exchange-traded funds (ETFs), SP Funds aims to provide investors access to cutting-edge technological advancements through SPTE.

The ETF focuses on global technology companies, investing in large and mid-cap stocks that leverage leading new technologies. SPTE offers exposure to rapidly evolving sectors, including artificial intelligence, e-commerce, cloud computing, and healthcare, presenting a unique growth opportunity and risk profile.

According to Virji, investors need to mitigate interest rate risk in a world of rising inflation and high interest rates as the global economy moves toward a post-interest cycle recovery. SPTE is positioned as a strategic investment to provide financial stability, reduced risk exposure, and the potential for higher returns, particularly amid significant debt obligations.

The launch aligns with the increasing demand for Shariah-compliant investments, appealing to both Muslim and non-Muslim investors due to ethical considerations, sustainability, and social responsibility. Sharia-compliant ETFs offer diversification, competitive costs, transparency, and trading flexibility, making them an attractive option for investors looking to hedge against leverage.

SPTE tracks the performance of the S&P Global 1200 Shariah Information Technology (Sector) Capped index, which includes companies classified within the GICS® Information Technology sector. The index, composed of 99 constituents across fifteen foreign countries as of October 31, 2023, follows AAOIFI guidelines to avoid investments in businesses with significant debt, such as tobacco, adult entertainment, gambling, and interest-based finance. SP Funds remains dedicated to providing socially responsible investments aligned with ethical principles.

Related Story:  The SP Funds S&P Global REIT Sharia ETF For Exposure To Shariah-Compliant Real Estate

Image by Mohamed Hassan from Pixabay

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