ETFs Lag $2.3 Trillion Market as Options Scarce: Islamic Finance

Almost a decade since the Islamic world’s first exchange-traded fund started operating, assets account for less than one percent of the total $2.3 trillion ETF market, according to Falah Capital LLC.

The U.S. fund manager set up its inaugural Shariah-compliant ETF this month as it seeks to tap growth in Islamic banking assets. Investment products conforming to Koranic principles that pool mainly stocks, bonds or commodities into single share units amount to $11.6 billion, Thom Polson, chief executive officer at Seattle-based Falah Capital, said in an Oct. 18 e-mail.