Manzil Russell Halal USA Broad Market ETF (MNZL)

Manzil Russell Halal USA Broad Market ETF, is an exchange-traded fund that provides investors with exposure to the U.S. stock market by investing in large U.S. companies that comply with halal investment criteria, while applying additional filters related to human rights standards.

The fund seeks to track the performance of the Russell IdealRatings Manzil Halal USA Broad Market Custom Index before fees and expenses. The index starts with the constituents of the Russell 1000 Index, which comprises approximately 1,000 of the largest U.S. companies by market capitalization, and then subjects these companies to Shariah screening criteria using the Russell IdealRatings methodology.

The index applies Shariah compliance criteria based on the Russell IdealRatings methodology, which is built on AAOIFI standards. The screening excludes companies involved in non-compliant activities such as alcohol, gambling, tobacco, conventional financial services, conventional insurance, and pork, among others. Companies are excluded if revenue from certain prohibited activities reaches 5% or more of total revenue.

In addition to Shariah screening, the index applies an additional screening process based on the principles of the American Friends Service Committee to exclude companies associated with serious human rights violations, such as ethnic cleansing, genocide, and other grave violations. Despite the broad range of companies from which the index begins, MNZL is classified as a non-diversified fund, meaning it may invest a greater percentage of its assets in a single company compared with funds classified as diversified, which may increase the impact of individual company performance on the fund’s value.