iShares MSCI USA Islamic UCITS ETF USD (Dist)
| Issuer: iShares |
| Asset Class: Equity |
| TER: 50bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 10 Dec 2007 |
| Ticker: ISUS |
| ISIN: IE00B296QM64 |
This investment vehicle is designed for those seeking to align their portfolio with Shariah principles while gaining exposure to the U.S. equity market. The fund's primary objective is to track the performance of an index composed of large and mid-capitalization U.S. companies that pass a series of screens for compliance with Islamic law. These screens systematically exclude businesses involved in prohibited activities such as alcohol, tobacco, gambling, conventional financial services that rely on interest, and pork-related products. By doing so, it offers a distinct opportunity for investors to participate in the growth potential of the American economy without compromising their ethical or religious convictions.
The portfolio provides a diversified, transparent, and rules-based approach to investing. It is not only suitable for Muslim investors but also appeals to a wider audience interested in socially responsible investing (SRI) and environmental, social, and governance (ESG) criteria. The inherent ethical screens often overlap with broader ESG concerns, particularly regarding 'sin stocks' and corporate governance related to financial practices. The fund employs a physical replication strategy, meaning it holds the actual stocks of the underlying index, which provides direct ownership and transparency into the holdings.
As a potential core holding, this product offers a straightforward and cost-effective method to access a professionally managed and pre-screened basket of Shariah-compliant U.S. stocks. It eliminates the complex and time-consuming process of individual security analysis for compliance, making it an accessible tool for building a values-based portfolio. The focus on established U.S. companies provides a foundation of quality and stability, positioning the investment at the intersection of principled investing and exposure to one of the world's most dynamic equity markets.
