SP Funds S&P World ETF (SPWO)

SP Funds S&P World (ex-US) ETF (SPWO) is an exchange-traded fund (ETF) that provides investors with exposure to Sharia-compliant global equity markets by investing in companies from developed and emerging markets outside the United States.

The fund seeks to track the performance of the S&P DM Ex-U.S. & EM 50/50 Shariah Index, an index that combines stocks from developed markets excluding the United States and emerging markets, with a 50% allocation to each. The index invests in companies that pass Sharia-compliance criteria, with limits applied to company weights to help reduce concentration.

SPWO follows a passive management approach, whereby the fund seeks to invest most of its assets in the securities comprising the index in an effort to track its performance before fees and expenses. Under normal circumstances, the fund invests at least 80% of its total assets in the components of the index.

The SP Funds S&P World (ex-US) ETF includes companies from multiple regions and markets, including Europe, Australia, the Far East, and emerging markets, making it different from equity funds that focus on the United States or on a specific economic sector.

The companies are subject to Sharia-compliance criteria, including screening of business activities and excluding companies engaged in non-compliant activities such as alcohol, gambling, and tobacco, as well as excluding companies that use levels of leverage that conflict with Sharia principles.

Despite the broad scope of its investments, SPWO is an equity fund and is therefore subject to stock market volatility, and the value of the investment may decline, including the loss of some or all of the invested capital.