Wahed Dow Jones Islamic World ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy receives an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and yield exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy's industry-standard management team still needs to prove it has a competitive advantage and earns an Average People Pillar rating. The strategy's parent firm has some investor-friendly attributes, like a favorable lineup success ratio and overall reasonable fees. As a result, the firm gets an Average Parent Pillar rating.

Analyst Rating

ASML Hld

Shopify

Novan

SAP SE

Rogers

National Energy Services Reunited

AstraZeneca

BHP Billiton

Suncor Energy

Crescent Point Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Wahed Dow Jones Islamic World ETF earns an Average Process Pillar rating. 

The predominant contributor to the rating is the firm's five-year retention rate of 100% over the period. The parent firm's superior risk-adjusted performance, as shown by its average overall Morningstar Rating of 4.0 stars, also supports the process. Lastly, the process is limited by the experience of the management team, which averages five years at this fund.

 This strategy prefers larger market-cap firms compared with the average fund in its peer group, the Foreign Large Growth Morningstar Category. But in terms of investment style, it is on par with peers. Examining additional factor exposure, this strategy has consistently had a defensive tilt owing to its exposure to high-quality stocks over the past few years. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In recent months, the strategy was more exposed to the Quality factor compared with its Morningstar Category peers as well. This strategy's portfolio also has had exposure to more stocks with high dividend or buyback yields over peers in these years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. Compared with category peers, however, the strategy had less Yield factor exposure in the latest month. Additionally, this strategy has demonstrated a bias away from momentum stocks during these years. Momentum investors tend to expect stocks that have done well recently to continue to do so in the short term. Momentum approaches can entail higher turnover and trading costs since the top stocks can often change. In this month, however, the strategy had more exposure to the Momentum factor than its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in technology and healthcare relative to the category average by 13.6 and 6.9 percentage points, respectively. The sectors with low exposure compared to category peers are financial services and industrials, underweight the average by 13.8 and 4.7 percentage points of assets, respectively. The strategy owns 99 securities and is relatively top-heavy. Of the strategy's assets, 39.7% are concentrated within the top 10 holdings, as opposed to the typical peer's 18.0%. And finally, in terms of portfolio turnover, on a year-over-year basis, 11% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Wahed Dow Jones Islamic World ETF earns an Average People Pillar rating. The leading driver of the rating is the firm's five-year retention rate of 100%. A low expense ratio also strengthens the rating, with costs ranking in its category's second-cheapest fifth. A higher expense ratio reduces net returns, so low costs give this team an advantage. Lastly, the rating is limited by the experience of the management team, which averages five years at this fund.

People

In a competitive industry, Wahed doesn't differentiate itself enough, leading to an Average Parent Pillar rating. The firm has had encouraging initial results among its product shelf. Its three-year risk-adjusted success ratio is 100%, meaning that 100% of the products have both survived and beaten their respective category median on a risk-adjusted basis. A high success ratio indicates good performance and provides insight into a firm’s discipline around investment strategy and product development. The firm stands out from a cost perspective for its open-end and exchange-traded funds, demonstrating a firm-wide commitment to minimizing costs and maximizing investors' returns. On average, the firm's fees on its funds are in the second cheapest quintile of its category. A cause for concern at Wahed are its relatively inexperienced longest-tenured managers. In particular, average tenure across portfolio managers is only three years, which contributes negatively to its rating.

Parent

Wahed Dow Jones Islamic World ETF

UMMA is an actively managed fund of global ex-US securities that are determined to be Shariah-compliant based on business activities and accounting criteria. Holdings are also screened to assess ESG risks.

Wahed has launched the Nasdaq's first Shariah-compliant and ESG-aware ETF, the Wahed Dow Jones Islamic World ETF (UMMA). Wahed, a New York-based firm that aims to advance financial inclusion through accessible, affordable, and values-based investing, launched its second ETF, UMMA, in collaboration with the U.S. Bank's Listed Funds Trust and Dow Jones.

Wahed Launches Nasdaq's First Shariah-Compliant ESG ETF, UMMA

NEW YORK--(BUSINESS WIRE)---- $UMMA--Wahed, a financial investment company that aims to advance financial inclusion through accessible, affordable, and values-based investing, will debut the Nasdaq's first Shariah-compliant and ESG-aware ETF today. The Wahed Dow Jones Islamic World ETF (Ticker: UMMA), which will begin trading today on the Nasdaq, seeks long-term capital appreciation and looks to provide investors access to international, ex-U.S. investments that seek to better align with their values. Th

News for Wahed Dow Jones Islamic World ETF ETF (UMMA)