Active Global Equity Shariah ETF Report | December 2024

Shariah Active ETF Key Takeaways

While opinions multiply regarding which campaign statements will translate into policy and which were just “politics,” there has been surprisingly little attention paid to US government finances. In 2023 Congress agreed to suspend the debt ceiling until January 2, 2025. On that date the debt ceiling will be set at the current debt level. The Treasury can take steps to continue borrowing but after some number of months the debt ceiling must be raised or once again suspended. Given the narrow Republican majority in the House of Representatives, that could be difficult. Government shutdowns and brinksmanship have become common but default has always been avoided…so far.
In November, the Shariah ETF gained 2.85%, trailing global Islamic and conventional benchmarks. Technology was the weak link relative to benchmark returns. Several positions, including ServiceNow, Adobe and Cisco performed well during the month but were negated by negative returns from Broadcom, Taiwan Semiconductor, Advanced Micro and Murata Manufacturing. Performance also lagged in the Consumer Discretionary sector as EV leader Tesla, which we do not own, soared due to Elon Musk’s close relationship with Donald Trump. Although it was among the weakest performing sectors during the month, our Healthcare selections bucked the trend, providing a positive return while the sector declined. Industrials were another bright spot, led by Trane Technologies and Johnson Controls. Stocks in several sectors have gyrated in reaction to the President-elect’s victory, cabinet nominations and latest pronouncements, a situation likely to continue for some time.
There’s a new sheriff in town.
While the US Presidential election was considerably closer than has been advertised by some parties, the result was clear by the following day and Donald Trump will be returning to the White House with a Republican majority in the Senate and the narrowest of majorities in the House of Representatives. Full control makes it likely that various policy announcements made during the campaign will be realized in one form or another. Tariffs, taxation and immigration will lead the list, with deregulation close behind. From the perspective of a global investment fund, tariffs loom largest. While it’s difficult to determine which of the President-elect’s tariff statements are policy initiatives on which he intends to follow through and which are negotiating stances, the broadening of the rhetoric from unfair trade to issues of border security indicates a desire to take advantage of various presidential powers to implement measures through executive action. In other words, we are reticent to dismiss the tariff threats as negotiating ploys, especially in the case of China and Mexico. Nonetheless, the US economy currently enjoys positive momentum with the most recent Atlanta Fed GDPNow estimate forecasting Q4 growth of 2.7%.
Moderating inflation, lower interest rates and the slowly grinding gears of governmental action imply the momentum will likely continue through at least the first part of the year. Following a strong November performance, stock market investors have taken a sanguine stance, most likely focusing on tax and regulatory issues.
Source of all performance data: HANetf / Bloomberg as of 30.11.2024. Additional sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance and when you invest in ETFs your capital is at risk.

Shariah Active ETF Performance Table

As of 31/10/2024

AMAL (Fund)
1M2.99%
3M-0.21%
6M6.42%
YTD11.54%
12M16.65%
3Y59.20%
Since Inception (28/09/2020)55.12%


Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 30/11/2024.

Performance before inception is based on back tested data. Back testing is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such strategy would have been. Back tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs, your capital is at risk.

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