SP Funds Launches Innovative “World-Ex US ETF” to Expand Sharia-Compliant Investment Solutions
NEW YORK, Dec. 22, 2023 (GLOBE NEWSWIRE) -- SP Funds, North America’s largest family of Sharia-compliant exchange-traded funds (ETFs), revealed the debut of “The SP Funds S&P World ex-USA ETF (SPWO)” on the New York Stock Exchange. Arca SPWO marks the newest inclusion in the company's expanding range of market-oriented funds, granting investors entry to the broad equity markets outside the USA and will serve as a complement to SPUS (The SP Funds S&P 500 Sharia Industry Exclusions ETF). Please welcome SPWO, the newest offering from the creators of SPUS (The SP Funds S&P 500 Sharia Industry Exclusions ETF, SPSK (The SP Funds Dow Jones Global Sukuk ETF), SPRE (The SP Funds S&P Global REIT Sharia ETF) and SPTE (The SP Funds S&P Global Technology ETF) ETFs.
SPWO stands as the newest SP Funds ETF which seeks to track the performance, fees and expenses of a benchmark S&P DM Ex-U.S. & EM 50/50 Shariah Index (USD) NTR Index (Ticker: SPDUESUN) that measures the investment return of stocks of companies located in developed and emerging markets around the world, excluding the US companies. The fund constituent companies are expected to benefit from growth in emerging market and EAFE (Europe, Australia and Far East) economies as inflation tends to be lower in these economies and the growth rate is expected to be higher compared to developed economies.
Currently the U.S. represents a high proportion of the global market capitalization and American investors who already own U.S equities can diversify geographically by buying SPWO which is an ex-U.S. ETF, instead of a comprehensive global stocks fund which would include more U.S. stocks, effectively negating some of that diversification. Additionally, the opportunities to invest in a Sharia-compliant way are increasing, supported by strong demand from Muslim and non-Muslim investors for its ethical foundation, sustainability, and social responsibility.
The SP Funds team anticipates that emerging markets will contribute substantial economic value in the next ten to twenty years. Simultaneously, developed markets outside the United States are expected to mitigate the fund's volatility. SPWO is a potential source of portfolio diversification and affords investors a cost-effective exposure1 to a diverse array of international companies in both developed and emerging markets, serving as a comprehensive avenue for non-U.S. stock investment. It may serve as the foundational element in an internationally diversified portfolio, aiming for long-term growth.
The S&P DM Ex-U.S. & EM 50/50 Shariah Index (USD) NTR Index: As of December 22, 2023, the Index was composed of 500 constituents, representing investments in forty-two foreign countries, and had a mean market capitalization of US $14 billion.
About SP Funds
SP Funds is dedicated to offering an ethical approach to investing that avoids companies with significant debt. By adhering to AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) guidelines, we ensure the securities in our ETFs avoid investments in businesses such as tobacco, adult entertainment, gambling and interest-based finance. The end result is a collection of socially responsible investments that are in well capitalized companies. For more information, visit www.sp-funds.com.
Important Information
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. The Fund’s gross expense ratio is 0.55%. A prospectus may be obtained by visiting www.sp-funds.com/spte-spwo-prospectus. Please read the prospectus carefully before you invest.
This information is for informational purposes only and should not be used for any other purpose. The information contained herein does not constitute and should not be construed as an offering of advisory services or an offer to sell or solicitation to buy any securities or related financial instruments in any jurisdiction.
Investing involves risk, including the possible loss of principal. Please read each prospectus for specific details regarding the ETF’s risk profile.
Certain information contained herein is based on or derived from information provided by independent third-party sources. SP Funds Trust believes that the sources from which such information has been obtained are reliable; however, it cannot guarantee the accuracy of such information and has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. The Fund is new with a limited operating history.
Islamic religious law commonly known as Sharia has certain restrictions regarding finance and commercial activities permitted for Muslims, including interest restrictions and prohibited industries, which reduces the size of the overall universe in which the Fund can invest. The strategy to reduce the investable universe may limit investment opportunities and
Non-diversified Fund risk: The Fund is a non-diversified fund. In general, a non-diversified fund may invest a greater percentage of its assets in a particular issuer and may own fewer securities than other funds.
Information Technology Sector Risk: The Fund’s investments will be concentrated in an industry or group of industries to the extent the Index is so concentrated. The Index is concentrated in the information technology sector. Market or economic factors impacting information technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments.
Foreign Securities Risk: The Fund will be subject to risks associated with adverse political and economic developments in foreign countries, including seizure or nationalization of foreign deposits, the imposition of economic sanctions, different legal systems and laws relating to bankruptcy and creditors’ rights, and the potential inability to enforce legal judgments, all of which could cause the Fund to lose money on its investments in non-U.S. securities.
Emerging Markets Risk: Investments in emerging market securities impose risks different from, or greater than, risks of investing in foreign developed countries, including smaller market capitalization; significant price volatility; and restrictions on foreign investment.
The S&P Emerging BMI Shariah offers investors a comprehensive emerging markets benchmark including large-, mid- and small-cap stocks the markets. It includes all Shariah-compliant constituents of the S&P Emerging BMI.
The Funds are distributed by Foreside Fund Services, LLC.
info@sp-funds.com
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1 The Fund’s gross expense ratio is 0.55%.
