IslamicFinance.de

Almost a decade since the Islamic world’s first exchange-traded fund started operating, assets account for less than one percent of the total $2.3 trillion ETF market, according to Falah Capital LLC. The U.S. fund manager set up its inaugural Shariah-compliant ETF this month. While the Philippines is set to become the latest nation to start an index of Shariah-compliant stocks this year, a lack of investment options in equities and bonds that comply with religious tenets is hindering growth in ETFs, Falah Capital’s CEO Thom Polson said. The Falah Russell-Ideal Ratings U.S. Large Cap exchange-traded fund has a market capitalization of $2.4 million and covers Shariah-compliant American companies.