(UMMA) Wahed Dow Jones Islamic - Overview

The Wahed Dow Jones Islamic World ETF (NASDAQ: UMMA) is an actively-managed, non-diversified ETF that targets equity securities of global (non-U.S.) companies deemed Shariah-compliant by a panel of subject-matter experts. Its mandate is to track the risk-adjusted return profile of the Dow Jones Islamic Market International Titans 100 Index, which screens for large-cap firms that avoid interest-based activities, alcohol, pork, gambling and other prohibited sectors.

Key metrics (as of the latest public filing, Q4 2023) suggest an expense ratio around 0.45 % and total assets under management (AUM) near $210 million, though exact figures may have shifted given recent market flows. The fund’s top sector exposures typically include Energy (≈30 % of assets, driven largely by Saudi-based oil majors), Financial Services (≈25 %, focused on Islamic banking), and Consumer Staples (≈15 %). These allocations reflect the broader composition of the underlying index, which is heavily weighted toward the Middle East and emerging-market economies where Islamic finance is a dominant capital-raising channel.

From a macro perspective, the ETF’s performance is closely tied to oil price dynamics, regional geopolitical stability, and the growth trajectory of the global Islamic finance market-which is projected by the Islamic Development Bank to exceed $3.5 trillion in assets by 2027. A rise in oil prices or a loosening of sanctions on key producers could boost earnings for the fund’s leading holdings, while a sustained shift toward renewable energy could re-balance sector weights over the medium term.

Given the fund’s non-diversified nature, investors should be aware that concentration risk is higher than in broad-based global ETFs; a 5 % move in the top three holdings could swing overall returns by roughly 1.5 %.

For a deeper quantitative breakdown and scenario analysis, you might find ValueRay’s interactive toolkit useful for exploring how changes in oil prices or Shariah-compliance screening criteria could affect UMMA’s risk-return profile.