Asset management firm BlackRock has launched an emerging market Sukuk exchange-traded fund (ETF), known as the iShares $ Sukuk UCITS ETF (SKUK), aiming to provide investors exposure to Islamic bonds issued by emerging market countries.
SKUK monitors the JPMorgan EM Aggregate Sukuk index, which index comprises of investment grade, high yield, and unrated sovereign, quasi-sovereign, supranational, and corporate securities, with a requirement of at least US$500 million outstanding amount. To be included in the index, issuers must meet the criteria set by AAOIFI.
The index is calculated based on the market value of the stocks, with a maximum limit of 8% for bigger companies and a secondary limit of 4.5% to prevent the dominance of larger companies. As of the 26th January 2024, the fund's net assets amount to US$29.98 million.
This launch expands BlackRock's lineup of Shariah compliant ETFs in Europe. This lineup comprises the iShares MSCI USA Islamic UCITS ETF (ISUS), the iShares MSCI World Islamic UCITS ETF (ISWD), and the iShares MSCI Emerging Markets Islamic UCITS ETF (ISDE), all of which were launched in 2007.
| Fund fact sheet | |
| Fund manager | BlackRock Asset Management Ireland |
| Fund launch date | 17th January 2024 |
| Base currency | US dollar |
| Benchmark index | JPMorgan EM Aggregate Sukuk Index |
| Use of income | Distributing |
| Asset class | Fixed Income |
| Distribution frequency | Semi-Annual |
| Domicile | Ireland |
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