HSBC Asset Management has launched a Shariah-compliant sukuk ETF, which is the first strategy of its kind to be listed in Europe.
A sukuk is an Islamic financial certificate, similar to a bond, which complies with Shariah law.
The ETF aims to track the FTSE IdealRatings Investment Grade Index, which incorporates more than 150 Shariah standards.
It is overseen by a team of Shariah scholars with experience in designing Shariah-compliant investment products and comes with a 0.7% total expense ratio.
HSBC Asset Management global head of ETF & indexing sales Olga de Tapia said: “As the first ETF of its kind available in European markets, our new Sukuk ETF share class builds on our long-term commitment to serving Islamic investors worldwide and will allow HSBC AM to meet growing global demand for an innovative range of Islamic passive products, either as standalone investments or as part of broader Shariah-compliant multi-asset portfolios.
“This should provide choice to Islamic investors enabling them to build a range of different portfolios, with different risk characteristics, on the same terms as conventional investors.”
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