Global Islamic Indices Outperform Conventional Benchmarks Year-to-date in 2020: S&P Dow Jones Indices

Global equities enjoyed considerable gains in the last quarter of 2020 (4Q 2020), gaining 15.9% year-on-year (YoY), as measured by the S&P Global BMI. Shariah-compliant benchmarks, including the S&P Global BMI Shariah and Dow Jones Islamic Market (DJIM) World Index, did not perform as well. Conventional counterparts outperformed during 4Q 2020 due to strong results in the conventional Financials sector, which saw gains of almost 25% YoY during the quarter.

In spite of this, Islamic indices finished in double-digits year-to-date (YTD), with the S&P Global BMI Shariah and Dow Jones Islamic Market (DJIM) World Index outperforming their conventional counterparts by 11.9% and 11.2%, respectively.

As global equities extended gains in 4Q 2020, sector drivers...