About WEALTHSIMPLE SHARIAH WORLD EQUITY INDEX ETF
Expense ratio
0.62%
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Inception date
May 12, 2021
The fund is passively managed to track an index of stocks compliant with Shariah Law that exhibit both quality and low volatility. The fund starts from a universe of large and mid-cap companies from developed countries that are generally not involved in any non-Halal items. Companies uncompliant with Shariah Law are typically involved in alcohol, tobacco, pork-related products, weapons and defense, conventional banking and conventional insurance companies, and adult entertainment. Stocks deemed to have good quality and low volatility are screened by the index provider through a multi-step process that ranks companies with the best multi-factor z-scores with respect to sector. The portfolio is weighted relative to the inverse of their volatility, subject to liquidity constraints. The fund may use a sampling methodology in which it could invest in a sample of securities that collectively have an investment profile like that of the underlying index. The index is rebalanced quarterly.