SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS)

Overview

The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) aims to provide investment results that correspond to the performance of the S&P 500 Sharia Industry Exclusions Index. It focuses on U.S. large-cap equities that comply with Sharia investment principles, excluding companies involved in industries such as alcohol, tobacco, pork, conventional financial services, and defense. The ETF employs a passive investment strategy, seeking to replicate the holdings of its underlying index.

Reputation and Reliability

SP Funds is a niche ETF provider focused on Sharia-compliant investments. While relatively new compared to established ETF issuers, it has built a reputation for developing specialized Islamic finance products. Its reliability is tied to its ability to accurately track its niche index and maintain its regulatory compliance.

Management Expertise

Information on the specific management team's expertise is not readily available in public profiles. However, SP Funds is generally understood to have expertise in structuring Sharia-compliant investment products and in managing index-tracking ETFs.

Goal

The primary investment goal of SPUS is to offer investors exposure to large-capitalization U.S. equities that adhere to Sharia investment guidelines, providing a diversified portfolio of companies screened for ethical and religious compliance.

Investment Approach and Strategy

Strategy: SPUS aims to track the performance of the S&P 500 Sharia Industry Exclusions Index. This is an index-based, passive investment strategy.

Composition The ETF primarily holds U.S. large-cap stocks selected from the S&P 500 index that meet specific Sharia compliance criteria. Companies are screened to exclude those involved in prohibited industries.

Market Share: SPUS operates in a specialized niche within the broader ETF market, focusing on Sharia-compliant investments. Its market share is relatively small compared to broad-market S&P 500 ETFs, but significant within its specific Islamic finance segment.

Total Net Assets (AUM): 160000000

Key Competitors

• iShares MSCI USA Islamic UCITS ETF USD (ISLAM.L)
• Wahed FTSE USA Shariah ETF (WSHR)
• SP Funds Dow Jones Islamic Market ETF (WSHR)

Competitive Landscape

The competitive landscape for Sharia-compliant ETFs in the U.S. is relatively concentrated. SPUS's main advantage is its specific focus on the S&P 500 Sharia Industry Exclusions Index, offering a direct link to a well-known broad market index with ethical screening. Competitors might offer broader global Islamic exposure or track different Sharia indices. Disadvantages could include lower liquidity and potentially higher expense ratios compared to mainstream ETFs.

Historical Performance: As of recent data, SPUS has shown performance generally aligned with the broader S&P 500, adjusted for its specific exclusions. Detailed historical performance data for various periods (e.g., 1-year, 3-year, 5-year, inception-to-date) would typically be available through financial data providers.

Benchmark Comparison: SPUS aims to track the S&P 500 Sharia Industry Exclusions Index. Its performance is expected to closely mirror this benchmark, with minor deviations due to tracking error and expenses.

Expense Ratio: 0.0055

Average Trading Volume

The average daily trading volume for SPUS is typically moderate, indicating reasonable liquidity for individual investors but potentially less for institutional traders.

Bid-Ask Spread

The bid-ask spread for SPUS is generally tight enough for most investors to trade without significant price slippage, reflecting its status as a U.S. equity ETF.

Market Environment Factors

SPUS is influenced by the overall performance of the U.S. large-cap equity market, interest rate policies, inflation, and global economic conditions. Demand for Sharia-compliant investments also plays a crucial role, driven by demographic trends and investor interest in ethical investing.

Growth Trajectory

The growth trajectory of SPUS is linked to increasing awareness and demand for Sharia-compliant investment products globally. Expansion of its investor base and potential adjustments to its screening methodology or index tracking could influence its future growth.

Competitive Edge

SPUS's primary competitive edge lies in its niche focus on Sharia-compliant large-cap U.S. equities, providing a direct and accessible investment vehicle for individuals and institutions seeking to align their portfolios with Islamic principles. It offers a unique combination of broad market exposure and ethical screening, filling a specific demand in the investment landscape. The ETF's adherence to a well-defined index methodology also provides transparency and predictability for investors.

Volatility

The volatility of SPUS is expected to be similar to that of the S&P 500 index, reflecting the inherent risks of investing in large-cap U.S. equities. Market downturns and sector-specific issues can impact its price.

Market Risk

SPUS is exposed to market risk, including systematic risk associated with the overall stock market, interest rate risk, and economic downturns. Additionally, it carries the risk that companies within its index may face challenges that are not related to the excluded industries, or that the Sharia screening process may lead to a more concentrated portfolio in certain sectors.

Ideal Investor Profile

The ideal investor for SPUS is an individual or institution that adheres to Sharia investment principles and seeks to invest in U.S. large-cap equities. This includes Muslims, as well as non-Muslim investors interested in socially responsible or ethically screened investments.

Market Risk

SPUS is best suited for long-term investors who want diversified exposure to U.S. large-cap companies while adhering to Sharia law. It is generally not designed for active traders due to its passive nature and expense ratio.

The SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS) offers a Sharia-compliant way to invest in U.S. large-cap stocks, tracking the S&P 500 Sharia Industry Exclusions Index. It excludes companies in prohibited sectors, catering to a specific ethical investment demand. While operating in a niche market, SPUS provides a unique blend of broad market exposure and religious compliance, making it suitable for long-term investors seeking ethical diversification.

Data Sources:

• ETF Issuer Website (SP Funds)
• Financial Data Aggregators (e.g., Morningstar, ETF.com)
• Index Provider Website (S&P Dow Jones Indices)

Disclaimers:

This JSON output is for informational purposes only and does not constitute financial advice. Data and performance figures are subject to change. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Market share data is illustrative and based on general market understanding of niche ETF segments.