Dubai: Abu Dhabi’s Chimera Capital has launched two US S&P linked Sharia ETFs (exchange-traded funds), raising the number of its ETFs to eight and with a combined assets under management of Dh420 million.
“We are pleased to be able to offer investors on the ADX direct access to the US market for the first time,” said Sherif Salem, Chief Investment Officer – Public Markets at Chimera Capital.
The ‘Chimera S&P US Shariah Value ETF’ is the fourth Shariah-compliant sub-fund under the Chimera Umbrella Fund. It will track the performance of the S&P High Yield Dividend Aristocrats U.S. Shariah Top 30 35/20 Capped Index (Custom). The index tracks the performance of thirty of the biggest and most liquid Shariah-compliant companies within the S&P Composite 1500 that have followed a managed-dividend policy of consistently increasing dividends every year for at least 20 years.
The index includes blue chip stocks such as Johnson & Johnson, Procter & Gamble, and Exxon Mobil.
The Chimera S&P US Shariah Value ETF is an Income Share Class B, which will be listed on the Abu Dhabi Securities Exchange (ADX). Any dividends collected by the fund will be distributed to investors, as available. An ‘Accumulating Share Class A listed on ADX’, it will reinvest income back into the fund at no additional expenses to the unit holders.
“The two US Shariah-compliant ETFs provide exposure to some of the biggest and most exciting US-based companies,” said Salem. “Moreover, the ETFs offer investors two strategies to meet their investment preferences – the Growth ETF will include high growth companies and be dominated by the tech sector while the Value ETF will contain more mature companies that pay regular dividends.”