SP Funds launches two Sharia-compliant ETFs

Publisher: Seeking Alpha

SP Funds launches the SP Funds S&P Sharia Industry Exclusions ETF (SPUS -0.5%), which is designed to provide value-conscious exposure to those S&P 500 companies that meet the guidelines of the Accounting and Auditing Organization for Islamic Financial Institutions.

The ETF and its underlying index use an exclusion methodology to produce the underlying portfolio. Companies dealing with the following are removed from consideration: alcohol;gambling; defense/weapons; tobacco; adult entertainment; pork products; credit cards; music, cinema, and broadcasting; interest-based businesses; and highly leveraged businesses.

The firm also launches the SP Funds Dow Jones Global Sukuk ETF (NYSEARCA:SPSK), which provides targeted exposure to sukuks — financial certificates that are similar to bonds, issued in global markets, and structured to comply with Islamic religious law and investment principles.

SPUS has an expense ratio of 0.49% and SPSK has a gross expense ratio of 0.65%.