Active Global Equity Shariah ETF Report | July 2026

Shariah Active ETF Key Takeaways

As international investors, an interesting development of late has been the weakening of the Japanese yen, which hit a 40-year low at month end of 162.77 versus the USD.[1] At the same time, Japanese rates have risen from the dead with the ten-year bond now yielding 2.7%. That may sound low compared to most of the developed world but in a Japanese context one must wonder when the money starts flowing back home and the carry trade becomes less attractive to foreign investors. Any change in direction of the flows experienced over the past few decades would have considerable implications given Japan’s position as the largest holder of US government debt.[2]

In June, the Saturna Al Kawthar Global Focused Equity UCITS ETF returned +1.87%,[3] posting the third consecutive month of positive returns as markets rallied in the second quarter following an initial downturn in the wake of the attacks on Iran. The June return was well ahead of comparable global Islamic and conventional benchmarks, which treaded water despite market buoyancy. One reason for the benchmark underperformance was Energy weakness as oil prices dropped -25% (Brent Crude) during the month, creating the largest drag on Islamic indexes.[4] We have long contended that Energy will always provide periods of stellar performance, only to be followed by drawdowns, and that the sector is in secular decline. Energy aside, our sector performance diverged from what we have seen in recent months. Our Technology selections underperformed (-0.82%) as returns were dominated by memory stocks to which we lack exposure, while companies that have been driving the AI trade since 2023 were moribund. Communications, which has also been solid, suffered as Alphabet declined during the month, falling -6.13%. On the other hand, our Industrials stocks continued their winning streak, gaining +8.83%, while Healthcare, Consumer and Materials also provided outperformance versus the benchmark.[5]

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.

Isn’t that the purposes of stock markets?

Meta (Facebook) threw a monkey wrench into the AI debate by announcing it would start providing cloud services to absorb its excess compute capacity.[6] Remarkably, less than three months earlier Meta signed a $21 billion deal with Coreweave for the latter to provide AI cloud capacity.[7] Undoubtedly, there are considerations to which we are not privy but the announcement suggest a realisation that caution should be exercised. As one might expect, the purveyors of equipment to make semiconductors – Taiwan Semi and ASML – were punished the day of the announcement. The pain was exacerbated by news that the Chinese continue to offer competitive AI models developed at a fraction of the cost and with homegrown chips.[8] We may question the later claim but the waters have been muddied and, to quote Winston Churchill, the outlook for AI development and the demand for the related equipment and services have become “a riddle wrapped in a mystery inside an enigma.” He was referring to the pre-WW2 Soviet Union, but the future of AI investments appears equally opaque.

Shariah Active ETF Performance Table
As of 31.07.2026

Please note that all performance figures are showing net data. Source: Bloomberg / HANetf. Data as of 31.07.2026

Past performance 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.

For more information, visit the webpage for our Shariah Active ETF.

[1] https://www.wsj.com/finance/currencies/yen-hits-fresh-40-year-low-versus-dollar-traders-alert-for-possible-fx-intervention-a4157861

[2] https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

[3] Source: Saturna Capital, Bloomberg. Data as of 30.06.2026

[4] https://tradingeconomics.com/commodity/brent-crude-oil

[5] Source: Saturna Capital, LSEG Workspace. Data as of 30.06.2026

[6] https://www.reuters.com/business/meta-sell-excess-ai-computing-capacity-via-cloud-business-bloomberg-news-reports-2026-07-01/

[7] https://investors.coreweave.com/news/news-details/2026/CoreWeave-and-Meta-Announce-21-Billion-Expanded-AI-Infrastructure-Agreement/default.aspx

[8] https://www.nytimes.com/2026/06/25/technology/zai-china-artificial-intelligence-models.html

IMPORTANT INFORMATION This document is approved for professional use only.

Communications issued in the UK

The content in this document is issued by HANetf Limited (“HANetf”) and approved by Privium Fund Management (UK) Limited (“Privium”). HANetf is an appointed representative of Privium, which is authorised and regulated by the Financial Conduct Authority. The registered office of Privium is The Shard, 24th Floor, 32 London Bridge Street, London, SE1 9SG

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Past performance is not a reliable indicator of future performance. The price of the Products may vary and they do not offer a fixed income. This document may contain forward looking statements including statements regarding our belief or current expectations with regards to the performance of certain assets classes. Forward looking statements are subject to certain risks, uncertainties and assumptions. There can be no assurance that such statements will be accurate and actual results could differ materially from those anticipated in such statements. Therefore, readers are cautioned not to place undue reliance on these forward-looking statements. The content of this document is for information purposes and for your internal use only, and does not constitute an investment advice, recommendation, investment research or an offer for sale nor a solicitation of an offer to buy any Product or make any investment.

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