Islamic ETF Is Built for Bull Markets
The JETS Dow Jones Islamic Market International Index Fund (JVS), an exchange traded fund that follows the spiritual law of Shari'ah, can be appreciated by non-Muslims: About half the fund comprises energy and materials stocks, and financial-services shares are nowhere to be found. When the bull market takes off for real, this ETF is sure to get pulled along.
The fund consists of mega-cap and large-cap companies, including BP (BP), 4.9%; Novartis (NVS), 3.3%; and both BHP Billiton listings (BHP) (BBL), totaling 4.7%. The JETS Dow Jones Islamic Market International Index Fund is heaviest in energy, 30%; materials, 18%; and health care, 18%.
It's the first exchange traded fund compliant with Shari'ah law. The nature of the rules governing the index are such that there will be very little, and for now there is no, financial-industry exposure. The fund can't own casinos, alcohol, tobacco, pork or weapons producers. And there are debt restrictions.
The country breakdown favors Western Europe and Japan: the U.K., 18%; France 10%; Canada, 10%; Switzerland, 9%; and Japan, 9%. It has a little emerging market exposure with Russia, India and Brazil. The fund has 100 holdings with a median market cap of $20 billion.The fund makes international indexing available to U.S.-based Islamic investors who wish to comply with Shari'ah law. A press release about the fund noted that there are "over 7 million Muslims in the United States" but no mention of what portion might be investors. So it's possible the target market is quite small.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV