Friday, June 18, 2021
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Case StudyA closer look: Wealthsimple Shariah World Equity Index ETF

A closer look: Wealthsimple Shariah World Equity Index ETF

Looking to tap into Canada’s nascent Islamic exchange-traded fund (ETF) landscape, Wealthsimple has launched the country’s first Islamic ETF to cater to the appetite of Canadian Muslims.

Toronto-based robo-advisory investment firm Wealthsimple, which manages CA$8.4 billion (US$6.93 billion) in assets under management as of February 2021, has rolled out Canada’s first Shariah compliant ETF, the Wealthsimple Shariah World Equity Index ETF (ticker: WSHR).

Launched on the 12th May 2021, WSHR complements Wealthsimple’s ETF portfolio which includes the Wealthsimple North America Socially Responsible Index ETF and the Wealthsimple Developed Markets ex North America Socially Responsible Index ETF which are trading on the Toronto Stock Exchange.

The Islamic ETF seeks to replicate the performance of the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index, or any Shariah compliant successor.

“Our mission is to make financial products more affordable and accessible for everyone. Muslim investors in Canada will now have access to an affordable investment product that is in line with their values,” said Ben Reeves, the chief investment officer of Wealthsimple.

Managed by Mackenzie Financial Corporation, WSHR allows Islamic investors to invest their money into a thoughtfully constructed investment fund designed to maximize their diversification while being compliant with Shariah principles.

The fund manager has appointed Ratings Intelligence Partners as its Shariah advisor to monitor the Shariah compliance of the fund.

Concurrently, WSHR has been listed on the NEO Exchange, a Canadian stock exchange in Toronto. WSHR marks NEO’s 100th fund listing. NEO consistently represents about 20% of all volume traded in Canadian ETFs and close to 15% of all trading in Canadian listed companies.

Table 1: Fund fact sheet 

Name of the fund Wealthsimple Shariah World Equity Index ETF
Launch date 12th May 2021
Fund manager Mackenzie Financial Corporation
Fund category Exchange-traded fund (Shariah compliant)
Fund domicile Canada
Targeted Size N/A
Investment objective The fund seeks to replicate the performance of the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index, or any Shariah compliant successor.
Asset allocation The fund tracks the Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index which primarily includes Shariah compliant equity securities in developed markets globally and characterized by the index provider as having the highest combination of quality and low volatility multi-factor score.
Geographical exposure Canada
Targeted yield N/A
Investor type All investors
Base currency Canadian dollar
Risk level Medium risk
Benchmark Dow Jones Islamic Market Developed Markets Quality and Low Volatility Index.

The opinions and viewpoints expressed in the Fund Focus do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.

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