HSBC Asset Management has launched Europe’s first sukuk ETF, providing exposure to Islamic bonds globally.
The HSBC Global Sukuk UCITS ETF launched today (12 September) as a new ETF class of an existing fund that was launched in January 2023. Sukuks are used to circumvent the interest-paying bond structure prohibited under Shariah law, with issuance reaching $193.9bn in 2022, according to data from Refinitiv. With a total expense ratio of 0.7%, the ETF tracks the FTSE IdealRatings Investment Grade index, incorporating over 150 Shariah standards. The index is subject to oversight by a team of Shariah scholars and designed to meet Accounting and Auditing Organization for Islamic Financial...
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