Wahed Dow Jones Islamic World ETF (UMMA)

ETF Wahed Dow Jones Islamic World ETF (NASDAQ: ISDW) Overview:

Profile: ISDW is an exchange-traded fund (ETF) focused on Shariah-compliant global equities. It tracks the Dow Jones Islamic Market World Index, targeting large and mid-cap companies across developed and emerging markets that comply with Islamic investment principles. ISDW invests primarily in equities, with some allocation to fixed income and money markets.

Objective: The ETF aims to provide long-term capital growth through exposure to a diversified portfolio of Shariah-compliant global equities.

Issuer: Wahed Invest is the issuer of ISDW.

• Reputation and Reliability: Wahed Invest is a relatively young company founded in 2017. It operates in the Islamic finance space, offering investment products and financial education.
• Management: Wahed Invest has a diverse management team with experience in finance, technology, and Islamic finance.

Market Share: ISDW has a market share of approximately 0.75% in the Islamic ETF market.

Total Net Assets: As of November 2023, ISDW's total net assets are around $65 million.

Moat: ISDW's competitive advantages include:

• Shariah-compliant: Caters to a specific investor base seeking Shariah-compliant investments.
• Global diversification: Provides broad exposure across developed and emerging markets.
• Low expense ratio: Offers a competitive expense ratio compared to other Islamic ETFs.

Financial Performance:

• Historical Returns: ISDW has delivered positive returns since its inception in 2018.
• Benchmark Comparison: The ETF has generally outperformed its benchmark, the Dow Jones Islamic Market World Index.

Growth Trajectory: The Islamic finance market is experiencing significant growth, and ISDW is well-positioned to capture a portion of this growth due to its focus and competitive advantages.

Liquidity:

• Average Trading Volume: ISDW's average trading volume is around 10,000 shares per day, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread is typically tight, suggesting low transaction costs.

Market Dynamics: Market dynamics affecting ISDW include:

• Global economic growth: Positive economic growth prospects can benefit global equity markets.
• Performance of Islamic equities: The performance of the underlying Islamic equities will directly impact ISDW's returns.
• Investor sentiment towards Shariah-compliant investments: Growing interest in ethical investing could benefit ISDW.

Key Points:

• Shariah-compliant global equity ETF.
• Focuses on large and mid-cap companies.
• Aims for capital growth through a diversified investment approach.
• Offers competitive expense ratio.

Risks:

• Market volatility: ISDW's value may fluctuate due to changes in the global stock markets.
• Concentration risk: The ETF has some concentration in specific sectors and countries.
• Liquidity risk: The ETF's moderate trading volume may impact the ease of buying or selling shares.

Who Should Consider Investing: Investors seeking:

• Shariah-compliant exposure to global equities.
• Long-term capital growth potential.
• Diversification across developed and emerging markets.

Fundamental Rating Based on AI:

7.5/10

ISDW exhibits strong fundamentals, including a unique Shariah-compliant approach, diversified portfolio, and low expense ratio. Its historical performance has been positive, and it is positioned for growth within the expanding Islamic finance market. However, investors should be mindful of the market volatility and concentration risks associated with the ETF.

Resources and Disclaimers:

• Data sources: Wahed Invest website, Morningstar, Bloomberg
• Disclaimer: This information is intended for educational purposes only and should not be considered investment advice.