SP Funds S&P Global Technology ETF (SPTE)

SP Funds S&P Global Technology ETF, is an exchange-traded fund that provides investors with exposure to the global technology sector that complies with Islamic Sharia principles by investing in shares of global technology companies, including large- and mid-cap companies.

The fund seeks to track the performance of the S&P Global 1200 Shariah Information Technology (Sector) Capped Index, an index that measures the performance of global information technology companies that comply with Islamic Sharia principles, with limits applied to company and country weights to help limit concentration within the index.

The fund uses passive management aimed at tracking the benchmark index, with at least 80% of its total assets under normal circumstances invested in the securities comprising the index. The fund generally uses an index replication strategy by investing in its constituents, with the possibility of using a representative sampling approach when needed.

The fund focuses on the information technology sector and therefore does not provide diversification across different sectors of the economy. This concentration may make the fund’s performance more sensitive to changes in the technology sector, such as rapid technological developments, product cycles, competition, and regulatory changes, which may result in greater volatility in the fund’s performance.

SPTE is also exposed to the risks of investing in global markets, currencies, and emerging markets, in addition to equity risks and market volatility. Sharia compliance standards may reduce the range of companies available for investment, which may limit certain investment opportunities compared with funds with a broader investment scope.

SPTE seeks to distribute net investment income, if any, at least monthly, while net realized capital gains are distributed at least annually.