SberBank Unveils Islamic Exchange-Traded Fund Via Asset Management Arm

Sber Asset Management, part of Russia-based SberBank, has unveiled an Islamic Exchange-Traded Fund (ETF), known as Halal investments, according to a statement issued by the bank on the 19th of November 2021.

Why it Matters?

The Shariah-compliant ETF fund is benchmarked against the MOEX Shariah Total Return Index, which is one of two new indices launched by Sberbank in October 2021 in collaboration with the Moscow Exchange. The Islamic ETF, which adds to Sber Asset Management’s existing passive management funds, targets long-term capital growth, and invests in Shariah-compliant companies with adequate liquidity and growth potential. The ETF qualifies as an Environmental, Social, and Governance (ESG) fund in light of its social component.