Islamic
Islamic Trackers
10/09/08 09:00
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