HSBC FTSE EPRA NAREIT Developed Islamic UCITS ETF Acc

Issuer: HSBC

Asset Class: Alternative

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 22 Sep 2023

Ticker: HIND

ISIN: IE000U679IT9

This fund offers a specialized investment opportunity for those seeking to tap into the global real estate market while adhering to Islamic finance principles. It provides exposure to a diversified portfolio of publicly listed real estate companies and Real Estate Investment Trusts (REITs) across developed countries. The investment strategy is designed to mirror the performance of a benchmark that specifically screens for companies compliant with Shariah law. This means excluding businesses involved in prohibited activities such as alcohol, gambling, and conventional finance involving interest. The result is a portfolio focused on the tangible assets of the property sector, aligning financial goals with ethical and religious values.

By investing in this fund, individuals can gain access to the potential for both capital appreciation and income generation inherent in real estate, without the complexities of direct property ownership. The holdings are geographically diversified across major developed markets, including North America, Asia, and Europe, which helps to mitigate country-specific risks. As an accumulating share class, any income generated from the underlying properties, such as rent, is automatically reinvested back into the fund. This compounding effect can significantly enhance long-term growth potential, making it a suitable component for a long-term, growth-oriented portfolio that requires Shariah compliance.