Islamic Trackers

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The Financial Times Deutschland wrote about the new ETFs on Islamic indices. 4asset-management was asked for an opinion.
Our main arguments:
  • Although the trackers might contain Swaps to better track the index, they are Sharia approved by a respected comittee
  • Investors will have a good performance in relation to the recent market turmoil but might lose performance when banks recover
  • The product is Sharia approved but market making under strict Sharia rules can be tricky - the necessary hedge is hard to achieve
The article can be read here (in German)