(UMMA) Wahed Dow Jones Islamic - Ratings and Ratios

The Wahed Dow Jones Islamic World ETF (UMMA) is a Foreign Large Growth ETF listed on NASDAQ, providing investors with exposure to a diversified portfolio of global equities that comply with Islamic investment principles. With Assets Under Management (AUM) of $154.31 million, the fund offers a moderate level of liquidity, as evidenced by its average trading volume of 23,800 shares.

To evaluate the ETFs performance, key metrics such as tracking error, expense ratio, and dividend yield should be considered. A low tracking error would indicate that the ETF is effectively replicating its benchmark index, while a competitive expense ratio would help minimize costs for investors. Additionally, the dividend yield would provide insight into the ETFs income-generating potential.

The ETFs investment strategy is centered around the Dow Jones Islamic World Index, which comprises large-cap stocks from developed and emerging markets that adhere to Islamic finance principles, such as avoiding investments in companies involved in pork production, gambling, or interest-based financial services. The funds beta of 1.18 suggests that it is slightly more volatile than the broader market, making it potentially more attractive to investors seeking growth opportunities.

Key economic drivers that may impact the ETFs performance include global GDP growth, international trade policies, and currency fluctuations. As a Foreign Large Growth ETF, UMMA is likely to be influenced by the economic performance of countries in which its constituent stocks operate. Investors should monitor indicators such as GDP growth rates, inflation, and interest rates in these countries to gauge the ETFs potential prospects.

To optimize investment decisions, it is essential to monitor the ETFs performance relative to its benchmark index and peers. Key Performance Indicators (KPIs) such as returns, volatility, and Sharpe ratio can help investors assess the ETFs risk-adjusted performance and make informed decisions. By applying a data-driven approach, investors can identify opportunities to maximize returns while minimizing risk.