Wahed Launches Shariah-Compliant ESG Fund
Values-based investment company Wahed announced the launch of the Wahed Dow Jones Islamic World ETF (ticker: UMMA), the first Shariah-compliant and ESG-aware exchange-traded fund to be listed on Nasdaq.
Launched in collaboration with U.S. Bank’s Listed Funds Trust and Dow Jones, UMMA largely tracks the Dow Jones Islamic Market International Titans 100 Index, which measures the stock performance of the largest ex-U.S. companies that have passed rules-based screens for adherence to Shariah investment guidelines. The index excludes companies deriving more than 5% of revenue from activities including alcohol, weapons and defense, pork-related products, conventional financial services, entertainment and tobacco. In addition to these exclusions, the fund utilizes ESG data science solution RepRisk to assess and filter constituents based on ESG risks.
Samim Abedi, Chief Investment Officer at Wahed, said:
“We believe our new fund provides investors a highly personalized investing experience that is more true to their theological beliefs. The line between ethical, socially responsible, and ESG investing has appeared to blur, and we’re excited to seek to provide investors a vehicle to diversify their portfolio with international investments that align with even more of their beliefs. By bringing these values-based investment principles together, we believe we’re addressing a clear gap in the market for an international Shariah-compliant fund managed through an ESG investing lens.”