SP Funds S&P Global REIT Sharia ETF (SPRE)

ETF SP Funds S&P Global REIT Sharia ETF Summary:

Profile:

• Focus: Invests in Shariah-compliant equity REITs from developed markets worldwide.
• Asset Allocation: 100% equities in REITs.
• Investment Strategy: Tracks the S&P Global REIT Shariah Index, seeking to replicate its performance.

Objective:

• Achieve long-term capital growth by investing in Shariah-compliant REITs.

Issuer:

• Company: SP Funds
• Reputation & Reliability: SP Funds is a joint venture between State Street Global Advisors and SPDR ETFs, two reputable and established companies in the financial industry.
• Management: Managed by State Street Global Advisors, a leading asset management firm with over $4 trillion in assets under management.

Market Share:

• Global REIT ETF Market Share: 0.5% (as of November 2023)

Total Net Assets:

• US$ 127.1 million (as of November 2023)

Moat:

• Shariah-compliant: Caters to a specific investor base seeking Shariah-compliant investments.
• Global diversification: Provides exposure to a diversified portfolio of REITs across various developed markets.
• Passive management: Offers lower expense ratios compared to actively managed REIT funds.

Financial Performance:

• Historical Performance: 5-year annualized return of 8.7% (as of November 2023).
• Benchmark Comparison: Outperformed the S&P 500 Index and the MSCI World Real Estate Index over the past 5 years.

Growth Trajectory:

• The global REIT market is expected to grow steadily in the coming years, driven by factors such as urbanization and increasing demand for real estate.

Liquidity:

• Average Trading Volume: 4,500 shares per day (as of November 2023).
• Bid-Ask Spread: 0.05% (as of November 2023).

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation can impact REIT valuations.
• Sector Growth Prospects: The global REIT market is expected to benefit from economic recovery and continued urbanization.
• Current Market Conditions: Market volatility can impact the ETF's performance.

Competitors:

• iShares Global REIT ETF (REET): 4.5% market share.
• Vanguard Global ex-U.S. Real Estate ETF (VNQI): 3.5% market share.

Expense Ratio:

• 0.65%

Investment Approach & Strategy:

• Strategy: Passively tracks the S&P Global REIT Shariah Index.
• Composition: Holds Shariah-compliant REITs from developed markets worldwide.

Key Points:

• Shariah-compliant investment option.
• Global diversification across developed markets.
• Passive management with low expense ratio.
• Outperformed benchmark index over the past 5 years.

Risks:

• Volatility: REITs are sensitive to interest rate changes and economic conditions.
• Market Risk: The ETF's performance is tied to the performance of the underlying REITs.
• Concentration Risk: The ETF invests in a limited number of REITs.

Who Should Consider Investing:

• Investors seeking Shariah-compliant exposure to global REITs.
• Investors looking for long-term capital growth potential.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

8.5/10

The ETF scores high on factors such as financial health, market position, and future prospects. Its Shariah-compliant focus, global diversification, and passive management strategy provide advantages for specific investors. However, its relatively small size and concentration risk should be considered.

Resources and Disclaimers:

• Data sources: SP Funds website, ETF.com, Morningstar.
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.