Wahed Dow Jones Islamic World ETF (UMMA) offers investors exposure to Sharia-compliant equities across various sectors, primarily focusing on markets in the Middle East, Asia, and North America. The ETF's unique position lies in its adherence to Islamic investment principles, which restrict investments in certain industries, thus attracting a niche investor base seeking ethical investment options.
Business Overview
UMMA generates revenue primarily through management fees based on the total assets under management. The ETF's unique selling proposition is its compliance with Islamic finance principles, which restrict investments in sectors like alcohol, gambling, and pork. This niche focus allows UMMA to attract a dedicated investor base looking for ethical investment opportunities.
Changes in AUM driven by investor sentiment towards Islamic finance
Market performance of Sharia-compliant equities
Regulatory changes affecting Islamic finance
Trends in global oil prices impacting Middle Eastern markets
Risk Factors
Regulatory changes impacting Islamic finance practices
Market volatility affecting investor sentiment towards equities
Increased competition from other Islamic ETFs and investment products
Market entry of traditional asset managers into the Islamic finance space
Liquidity risk associated with market downturns affecting AUM
Potential for higher redemption rates during economic stress
Macro Sensitivity
moderate - The ETF's performance is linked to overall market conditions and investor sentiment, which can be influenced by GDP growth and consumer spending in key regions.
Rising interest rates may lead to increased financing costs for companies within the ETF, potentially impacting their profitability and attractiveness to investors.
minimal - The ETF is not directly dependent on credit markets, as it primarily invests in equities.
Profile
growth - Investors seeking ethical investment opportunities with growth potential in emerging markets.
moderate - The ETF may experience volatility in line with equity markets, particularly in sectors sensitive to geopolitical events.
Explore More
Compare equities side by side
Stocks breaking to new annual highs
S&P 500 oversold value screener
Relative strength momentum leaders
Upcoming earnings dates & reports
Filter and sort all 500 stocks
Continuous multi-factor scoring & catalyst forensics
Today's biggest gainers and losers
