Wahed FTSE USA Shariah ETF (HLAL)

Overview

The Wahed FTSE USA Shariah ETF (HLAL) seeks to track the investment results of the FTSE USA Shariah Index, which is designed to measure the performance of Shariah-compliant large- and mid-capitalization stocks in the United States.

Reputation and Reliability

Wahed Invest is a relatively new but reputable issuer focused on providing Shariah-compliant investment solutions. They are known for their digital-first approach.

Management Expertise

Wahed Invest has a team with expertise in Islamic finance and investment management, focused on offering ethically compliant financial products.

Goal

The ETF aims to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE USA Shariah Index.

Investment Approach and Strategy

Strategy: The ETF tracks the FTSE USA Shariah Index, a market-capitalization weighted index that screens stocks for Shariah compliance.

Composition The ETF primarily holds large- and mid-cap US equities that meet Shariah compliance standards, excluding companies involved in prohibited industries like alcohol, gambling, and conventional finance.

Market Share: HLAL's market share within the Shariah-compliant ETF niche is moderate, but growing as awareness increases.

Total Net Assets (AUM): 121100000

Key Competitors

• SP Funds Dow Jones Islamic Market ETF (SPUS)
• iShares MSCI USA Islamic UCITS ETF (ISDU)

Competitive Landscape

The Shariah-compliant ETF market is relatively niche. HLAL benefits from the growing demand for ethical investing but faces competition from larger, more established ETF providers like SP Funds and iShares. HLAL's competitive edge lies in its brand recognition within the Muslim investor community and its focused approach to Shariah compliance.

Historical Performance: Historical performance data needs to be pulled directly from financial data providers. Returns will vary annually and should be assessed over multiple time periods (e.g., 1-year, 3-year, 5-year).

Benchmark Comparison: Comparing HLAL's performance against the FTSE USA Shariah Index will show how effectively it tracks its target index. Deviations may occur due to fees and tracking error.

Expense Ratio: 0.5

Average Trading Volume

HLAL's average trading volume is moderate, reflecting its niche focus and may be lower than broader market ETFs.

Bid-Ask Spread

The bid-ask spread for HLAL is generally reasonable, but may widen during periods of market volatility or lower trading activity.

Market Environment Factors

Economic indicators, investor sentiment towards ethical investing, and sector performance within the Shariah-compliant universe influence HLAL's performance.

Growth Trajectory

HLAL's growth is tied to the increasing awareness and demand for Shariah-compliant investment options among Muslim investors and those interested in ethical investing. Future growth depends on the ETF's ability to attract assets and maintain strong tracking performance.

Competitive Edge

HLAL's competitive edge stems from its focus on Shariah-compliant investing, catering specifically to the Muslim investor community and those interested in ethical investing. Wahed Invest's brand recognition within this community, coupled with its commitment to transparency and adherence to Shariah principles, provides a significant advantage. The ETF's lower expense ratio and tight tracking of the FTSE USA Shariah Index enhance its appeal to cost-conscious investors. Furthermore, HLAL benefits from the increasing demand for socially responsible and ethical investment options.

Volatility

HLAL's volatility is generally comparable to the broader US equity market, but may be influenced by the specific sectors represented in the FTSE USA Shariah Index.

Market Risk

HLAL is subject to market risk, as its performance is tied to the performance of the underlying US equities. Specific risks include sector concentration risk (depending on the index composition) and the potential for changes in Shariah compliance standards.

Ideal Investor Profile

HLAL is suited for Muslim investors seeking Shariah-compliant investment options, as well as individuals interested in ethical and socially responsible investing. It is appropriate for those with a moderate to long-term investment horizon.

Market Risk

HLAL is best suited for long-term investors seeking exposure to US equities while adhering to Shariah principles. It can also be used by passive index followers looking for an ethical investment option.

The Wahed FTSE USA Shariah ETF (HLAL) offers investors exposure to Shariah-compliant US equities, tracking the FTSE USA Shariah Index. It is well-suited for Muslim investors and those interested in ethical investing. The ETF provides access to a diversified portfolio of large- and mid-cap companies that adhere to Shariah principles, excluding industries such as alcohol, gambling, and conventional finance. While it faces competition in the growing ethical investment space, HLAL's brand recognition and focused approach make it a compelling option for investors seeking Shariah-compliant exposure to the US equity market.

Data Sources:

• Wahed Invest Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.