Wahed FTSE USA Shariah ETF (HLAL)HLAL

ETF Wahed FTSE USA Shariah ETF Summary:

Profile:

• Target Sector: US Equities
• Asset Allocation: Large-cap stocks compliant with Shariah principles
• Investment Strategy: Passively tracks the FTSE USA Shariah Index, which comprises Shariah-compliant US large-cap stocks.

Objective:

• The primary investment goal is to provide long-term capital appreciation by tracking the performance of the FTSE USA Shariah Index.

Issuer:

• Name: Wahed Invest
• Reputation and Reliability: Wahed Invest is a US-based Robo-advisor known for its Shariah-compliant investment options. They have a good reputation in the market with a focus on ethical and responsible investing.
• Management: Wahed Invest has a team of experienced investment professionals with expertise in Shariah-compliant investing.

Market Share:

• The ETF Wahed FTSE USA Shariah ETF has a relatively small market share compared to other US large-cap ETFs.

Total Net Assets:

• As of November 1st, 2023, the ETF has approximately $25 million in total net assets.

Moat:

• Unique Strategy: The ETF offers a unique Shariah-compliant investment option for investors seeking exposure to the US large-cap market.
• Niche Market Focus: Caters to the growing demand for Shariah-compliant investment products.

Financial Performance:

• The ETF has a short track record, launched in 2022. It has generally performed in line with the FTSE USA Shariah Index.
• Benchmark Comparison: The ETF has closely tracked the performance of the FTSE USA Shariah Index.

Growth Trajectory:

• The ETF has experienced steady growth in assets under management.
• Future Prospects: The growth of the Shariah-compliant investing market suggests potential for further growth.

Liquidity:

• Average Trading Volume: The ETF has a moderate average daily trading volume.
• Bid-Ask Spread: The bid-ask spread is relatively tight, indicating good liquidity.

Market Dynamics:

• Economic Indicators: The performance of the US economy and stock market can impact the ETF.
• Sector Growth Prospects: Growth prospects of the US large-cap sector can influence the ETF's performance.
• Current Market Conditions: Interest rate changes and market volatility can affect the ETF's value.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard FTSE Social Index Fund (VFTAX)
• SPDR S&P 500 Shariah ETF (SPUS)

Expense Ratio:

• The ETF has an expense ratio of 0.50%.

Investment Approach and Strategy:

• Strategy: Passively tracks the FTSE USA Shariah Index.
• Composition: Holds large-cap US stocks compliant with Shariah principles.

Key Points:

• Shariah-compliant investment option.
• Provides exposure to the US large-cap market.
• Passive management with low expense ratio.
• Moderate liquidity.

Risks:

• Volatility: The ETF is exposed to market volatility and can experience fluctuations in value.
• Market Risk: The performance of the underlying stocks can impact the ETF's value.
• Tracking Error: The ETF may not perfectly track the performance of the FTSE USA Shariah Index.

Who Should Consider Investing:

• Investors seeking Shariah-compliant exposure to the US large-cap market.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

• Rating: 7.5/10
• Justification: The ETF offers a unique investment opportunity in the Shariah-compliant space with a solid track record and competitive expense ratio. However, the limited market share and short track record warrant a slightly lower rating.

Resources and Disclaimers:

• Information gathered from Wahed Invest website, ETF.com, and Morningstar.
• This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.